The “Spaghetti Bowl Phenomenon” is in the news due to ongoing debates about regional trade policies and the increasing number of Free Trade Agreements (FTAs).
The term, coined by Jagdish Bhagwati in 1995, describes the complex web of overlapping FTAs that can hinder rather than help trade.
Each FTA has unique Rules of Origin (ROO), creating challenges for producers trying to comply with different requirements across multiple FTAs. This complexity is the core issue.
The “spaghetti” analogy illustrates the messy and difficult-to-navigate nature of these trade rules.
The primary impact is that despite the rise in FTAs, regional trade volumes can stagnate because of the complexity and confusion caused by the “Spaghetti Bowl Phenomenon.”
