EU Trade Agreements and Non-Trade Policy Objectives

Abstract

The EU's common commercial policy is used as an instrument to realize its values in EU trading partners, reflected in the inclusion of sustainable trade and development chapters in EU preferential trade agreements (PTAs). In this paper we ask if including non-trade provisions (NTPs) in EU PTAs has a systematic positive effect on non-trade outcomes in partner countries. We analyze the relationship between bilateral trade flows, the coverage of NTPs in EU PTAs and the performance of EU partner countries on several non-trade outcome variables using synthetic control methods. We find no robust evidence of a causal effect of including NTPs in EU PTAs on indicators of non-trade outcomes. KeywordsNon-trade policy objectives, EU trade agreements, trade policy, non-trade provisions.Abadie, Alberto, Alexis Diamond, and Jens Hainmueller, "Synthetic control methods for comparative case studies: Estimating the effect of California tobacco control program,"

Public demand drives regulation of sustainable global supply chains in high-income countries

“…From an environmental or human rights perspective, this is encouraging. Specifically, supply chain regulation could be an important complement to existing sustainability-related trade policy as, e.g., environmental provisions in trade agreements have become a widely adopted policy tool [8] -despite their contested effectiveness [11,24].…”

Pursuing Environmental and Social Objectives through Trade Agreements

“…While non-trade policy objectives increasingly are incorporated in developed countries trade policies and PTAs, it is an open question whether this is effective in improving non-trade outcomes. The existing empirical evidence is mixed, context specific, and depends on the specific indicator considered (Ferrari et al, 2021).…”

Trade and Sustainable Development: Non-Economic Objectives in the Theory of Economic Policy

“…27 See Gerbrandy (2017) for discussion of the scope for NOEs under Dutch competition law and administration, and Zleptnig (2009) on scope for policies targeting NEOs under GATT/WTO law. 28 See e.g., Ferrari et al (2021) for a recent empirical assessment focusing on trade agreements.…”