The globalization and regionalism dilemma in world trade

The world, which was influenced greatly by the remarkable changes, and regeneration process experienced globally especially after second World War, is becoming economically, politically, socially and culturally integrated. This formation of the world has developed itself in two ways; one of these is globalization which is one of the main and major elements of change and the other one is regionalism which is in deep interaction with globalization and has a great importance in this this bordered world. The interaction between globalization and regionalism has a complex structure and it is often described as a dilemma. In order to reach economic globalization, first step on the path of being an integrated world as one, General Agreement on Tariffs and Trade, a multilateral agreement, which offers substantial reduction and the elimination of tariffs, trade barriers and the discriminatory treatment in trade relations, was signed and afterwards the World Trade Organization, the complement of this agreement, was established. Despite these globalization efforts, countries have given priority to regional trade liberalization because it was easier to form a regional blocs and faster to imply a regional policy than the multilateral system. With the movements of countries seeking to form regional alliances, the number of regional unions has grown rapidly especially after European Union and also the number of regional trade agreements has increased excessively after the establishment of World Trade Organization. These developments caused the position and the efficiency of the multilateral system of World Trade Organization to be questioned by regional unions and trade agreements and triggered the discussion of globalization and regionalism dilemma. In the developing process of world economy, globalization and regionalism has taken place together as being two main ways of this development and they mutually complete each other in spite of seeming to be contrary. Both globalization and regionalism sustain the international trade system and support it. Key Words: Globalization, Regionalism, General Agreement on Tariffs and Trade/World Trade Organization, Regional Unions/Regional Trade Agreements.