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Spaghetti Bowl Effect

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  • Spaghetti Bowl Effect

Preferential trade agreements (bilateral and regional PTAs) create fundamental conflicts with multilateralism in that they promote trade liberalization based on discrimination between members of those agreements and non-members. The Spaghetti Bowl Effect is an illustration of the complicated situation which occurs when products are brought into important markets by various ways depending on their origins. Globalization of production makes the identification process of product origins more difficult.