Global trade faces hurdles due to overlapping Free Trade Agreements (FTAs). Introduced by economist Jagdish Bhagwati in 1995, the Spaghetti Bowl Phenomenon refers to this growing complexity. Countries sign multiple FTAs to boost trade, but differing rules—especially Rules of Origin (ROO)—make trade harder instead of easier. Asia and Latin America show how such overlap discourages businesses, raising costs and reducing FTA use.

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• Spaghetti Bowl Phenomenon = Complex network of overlapping FTAs
• Coined by Jagdish Bhagwati in 1995 to criticize trade inefficiencies
• FTAs meant to ease trade, now making it harder to navigate
• Core issue: Different FTAs have different Rules of Origin (ROO)
• ROO differences increase compliance costs, reduce trade benefits
• SMEs avoid FTAs due to complexity, prefer simpler trade paths
• Trade stagnant between regions like South Asia and East Asia
• Asia, Latin America worst hit by FTA overlap and confusion
• Trade patterns distorted, not aligned with natural advantages
• Experts suggest unified ROO, mega-regional deals, and WTO reforms