On the one hand, that's right, as what you say, that in the relation between the regionalism and multilateralism, the "governments need to show restraint" so that the fundamental principle of the WTO - the most favoured nation treatmen is not becoming an exceptional treatment. But I suppose that it's not enough if we just count of the restraints of governments of Members of WTO, who are, at the same time almost all members of the PTA.
On the other hand, it's necessary to strengthen the rules of WTO on regional trade agreements too. As you say, the first test of any new initiative (of regionalisation) should be based on two criteria: 1) that it "clearly improves trading and development prospects of beneficiaires" and 2) that it "does not harm the interests of those outside". But actually, it seems that the existent provisions of WTO [GATT (article XXIV), GATS (article V), Enabling clause, Understanding of article XXIV] do not yet permit the WTO's Committee of RTA to decide if the RTA that it examines satisfy those two criteria. And, of course, to minimise the harms caused by the spaghetti bowl of rules of origin of different free trade areas, the provisions about the rules of origin of the WTO should be completed too.
It's easy to say than to do. But we have no choice: the spread of RTA is a matter of fact and WTO must take it into consideration. WTO has a chance to overcome this challenge: it seems that the majority of governments are aware of the principal role of WTO. So actually, they're not ready to damage the multilateral trading system by the initiatives of regionalisation. The more WTO contributes to the prosperity of nations, the more important this role is, and the bigger this chance will be.
From the part of governments, I suppose the question is not how to "restraint" so as not to create or strengthen the PTA - they ARE doing it more and more and they WILL CONTINUE to do it in the future. Their question for them is how to harmonize the initiatives of trade liberalisation in the multilateral and regional levels and they're trying now to resolve that question, for their benefice. They know very well that the uncontrolled spread of PTA is a thread not only for the multilateral trading system, but also for their economic profit (even the members of the PTA know that they can, at any time, be a country "outside" another PTA). An effort of WTO to clarify and ameliorate the rules on RTA would be supported by many Members of WTO, who are afraid of the erosion of non - discrimination and afraid of being discriminated.
hoa
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