This document discusses regional trade agreements and exceptions allowed under the WTO. It notes that the General Agreement on Tariffs and Trade (GATT) emerged from a regional/bilateral world and questions how broadly the most favored nation (MFN) clause should apply and what is the scope of its application. It examines challenges around the breadth of exceptions to MFN and reviews requirements under Article XXIV for establishing customs unions and free trade areas. It also discusses development aspects of regional trade agreements and the political issues around balancing MFN and state sovereignty in global trade governance.