Trade Agreement Ppt

17 Economic Assessment of the EUScere studies indicate that trade creation has dominated trade diversion in the EU Other studies have drawn attention to the role of non-tariff measures, subsidies (especially agricultural) and trade diversion in the growing network of ATPs between the EU and other countries© Kenneth A. Reinert, Cambridge University Press 2012 26 Annex: Basic rules for the assessment of PTAsThe countries excluded from a PTA almost always lose market access is a determining determinant for the net benefits of a PT The reduction of external tariffs against non-members of a PTA improves their desire for welfare Multilateral trade liberalization generates far greater benefits for the world than a network of PTAs © Kenneth A. Reinert, Cambridge University Press 2012 27 Annex: Basic rules for the assessment of SPAsFor some countries, „additive PTAs“ may be more beneficial than unilateral trade liberalization for developing countries © Kenneth A. Reinert, Cambridge University Press 2012 15 Summary of the economic impact of SAWPSPs can be either woh Improve driving or be compatible with well-being. Whether an PTA is beneficial or prosenal should be assessed on a case-by-case basis, based on evidence of the relative forces of trade creation and trade diversion. © Kenneth A. Reinert, Cambridge University Press 2012 4 Table 8.1: Types of preferential trade agreementsTaP date Description Number in force 2014 GATT Article XXIV (FTA) An agreement between a number of countries to eliminate trade restrictions between them. 221 ARTICLE XXIV (CU) OF THE GATT An agreement between a number of countries to eliminate trade restrictions between them and to adopt a common external law. 17 The enabling clause allows SAAs in trade in goods between developing countries. 37 GATS Art. V An agreement to reduce barriers to trade in services between a number of countries. 131 Total: 406 © Kenneth A.

Reinert, Cambridge University Press 2012 5 Table 8.2: Steps towards regional integrationType of free trade area An agreement between a number of countries to eliminate trade restrictions between them. Customs Union An agreement between a number of countries to eliminate trade restrictions and adopt a common external customs duty. Common market An agreement by a number of countries to eliminate trade restrictions between them, to introduce a common external customs duty and to allow the free movement of workers and physical capital between Member States. . . .