Advantages Of Regional Trade Agreement

Deep trade agreements are an important institutional infrastructure for regional integration. They reduce trade costs and set many of the rules under which economies operate. If made effective, they can improve political cooperation between countries, thereby increasing international trade and investment, economic growth and social welfare. Studies conducted by the World Bank Group have shown that the pros and cons of free trade agreements affect jobs, business growth, and living standards: Maliszewska M, Z. Olekseyuk, and I. Osorio-Rodarte, March 2018, economic and distributional impacts of the Commission and the Progressive Agreement for Trans-Pacific Partnership: the case of Vietnam. Washington, D.C: World Bank Group. Here, in the context of the GED project, we believe that it is possible that regional trade agreements will have a positive impact on countries that do not fall within the competence of the agreement. Using the example of the Transatlantic Trade and Investment Partnership (TTIP), we have developed ”5 Steps for TTIP to be included for all!”, in which we explain how TTIP can be used as a model for spreading benefits across the borders of agreement signatories. The preferential agreement requires the least commitment to the removal of barriers to trade Trade barriers are legal measures that are put in place primarily to protect a country`s national economy. They usually reduce the amount of goods and services that can be imported. Such barriers to trade take the form of customs duties or taxes, although Member States do not remove barriers between them.

In addition, preferential trade zones have no common barriers to foreign trade. Regional trade agreements are multiplying and changing in nature. Fifty trade agreements were in force in 1990. In 2017, there were more than 280. In many trade agreements, negotiations today go beyond tariffs and cover several policies that influence trade and investment in goods and services, including rules across the border such as competition policy, government procurement rules and intellectual property rights. . . .