Accumulated trade opening — at the multilateral, regional and unilateral level — has reduced the scope for offering preferential tariffs under PTAs. As a result, only a small fraction of global merchandise trade receives preferences, and preferential tariffs are becoming less important in PTAs.
The report reveals that more and more PTAs are going beyond preferential tariffs, with numerous non-tariff areas of a regulatory nature being included in the agreements.
Global production networks may be prompting the emergence of these “deep” PTAs as good governance on a range of regulatory areas is far more important to these networks than further reductions in already low tariffs. Econometric evidence and case studies support this link between production networks and deep PTAs.
The report ends by examining the challenge that deep PTAs present to the multilateral trading system and proposes a number of options for increasing coherence between these agreements and the trading system regulated by the WTO.
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report (256 pages; 8034KB)
acknowledgements, disclaimer, DG Foreword and Executive Summary (19 pages; 820KB)
I- World trade in 2010(22 pages; 451KB)
II- The WTO and preferential trade agreements: From co-existence to coherence
A. Introduction(6 pages; 78KB)
Historical background and current trends(46 pages; 2315KB)
Causes and effects of PTAs: Is it all about preferences?(30 pages; 550KB)
Anatomy of preferential trade agreements(42 pages; 1063KB)
The multilateral trading system and PTAs(32 pages; 485KB)
Conclusions(3 pages; 61KB)
Statistical appendix(29 pages; 324KB)
> Bibliography(11 pages; 178KB)
Technical notes, glossary, abbreviations and list of figures (16 pages; 859KB)
> New dataset on the content of PTAs