Overview: The Evolution of Deep Trade Agreements

Mattoo, Aaditya; Rocha, Nadia; Ruta, Michele

doi:10.1596/978-1-4648-1539-3_ov

Cited by 18 publications

(34 citation statements)

References 16 publications

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“…However, its provisions on transparency and regulatory stability have the intention of supporting SMEs. 7 Nevertheless, the EUKFTA is different from earlier agreements in being what the literature refers to as a 'deep' trade agreement (see, e.g., Dür, Baccini, and Elsig (2014) or Mattoo, Rocha, and Ruta (2020)).…”

Section: Introductionmentioning

confidence: 99%

Trade Liberalization Along the Firm Size Distribution: The Case of the EU-South Korea FTA

Chowdhry

Felbermayr

2021

SSRN Journal

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In 2011, the EU-South Korea Free Trade Agreement (EUKFTA) entered into force. With its focus on non-tariff barriers (NTBs), it is a leading example of a deep new generation agreement. Using detailed French customs data for the period 2000 to 2016, we investigate how exporters of different size have benefitted from the agreement. Applying a diff-in-diff strategy that makes use of the rich dimensionality of the data, we find that firms with larger pre-FTA sizes benefit more from the FTA than firms at the lower end of the size distribution, both at the extensive (product) and the intensive margins of trade. The latter finding is in surprising contrast to leading theories of firm-level behavior. Moreover, we find that our main result is driven by NTB reductions rather than tariff cuts. In shedding light on the distributional effects of trade agreements within exporters, our findings highlight the need for effective SME-chapters in FTAs.JEL-Codes: F130, F140.

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Section: Introductionmentioning

confidence: 99%

Trade Liberalization Along the Firm Size Distribution: The Case of the EU-South Korea FTA

Chowdhry

Felbermayr

2021

SSRN Journal

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“…The key independent variable is the depth of RTAs, and the specific calculation method is as follows: First, this study mainly considers 18 terms, including 1028 sub-terms, when measuring the depth of RTAs [ 37 ]. The 18 terms are anti-dumping, countervailing duties, export taxes, competition policies, investment, intellectual property policies, services, trade facilitation, state subsidies, labor market, migration, movement of capitals, public procurement, rules of origin, environment, sanitary and phytosanitary measures (SPS), state trading enterprise (STE), and technical barriers to trade (TBT).…”

Section: Methodsmentioning

confidence: 99%

“…Compared with traditional RTAs, deep RTAs cover a more comprehensive range of policy areas, including border measures, such as tariffs and non-tariff barriers, as well as environmental protection, labor market supervision, competition policies, services, etc. Mattoo et al [ 37 ] found that deep RTAs not only cover all the provisions within the scope of the current World Trade Organization (WTO) regulations, but also include some important provisions beyond the scope of the WTO regulations. Therefore, deep RTAs can effectively increase domestic employment and reduce domestic environmental pollution, thereby improving residents’ health through employment effects and environmental effects.…”

Section: Theoretical Analysis and Hypothesismentioning

confidence: 99%

Do Deep Regional Trade Agreements Improve Residents’ Health? A Cross-Country Study

Liu

Chen

Liu

et al. 2022

IJERPH

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The development trend of deepening regional trade agreements (RTAs) is becoming more prominent, traditional RTAs based on border terms continue to shift to deep RTAs based on the high level of border terms and a series of post-border terms, but the relationship between deep RTAs and residents’ health has not drawn much attention. Based on Gallup World Poll data from 2009 to 2017 covering 786,040 respondents in 143 countries, this study empirically examined the impact of deep RTAs on the health of residents as well as its influence mechanisms by using the combination of fixed effects and stepwise regression. The results show that deep RTAs have a significantly positive impact on residents’ health, which means that an increase in the depth of RTAs can improve residents’ health. However, the impact of deep RTAs on residents’ health is heterogeneous, caused by the different terms of RTAs, the different income levels of different countries, and the different types of residents. Meanwhile, deep RTAs mainly improve the health of residents through employment effects and environmental effects. This study highlights the importance of deep RTAs for improving the health of residents and provides new ideas for governments to assist in the formulation of policies that can effectively improve their residents’ health.

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“…US and EU Free Trade Agreements (FTAs) create opportunities for the large, multinational tobacco, food, and alcohol companies headquartered in these jurisdictions to oppose unhealthy commodity policies, as summarised in Fig 2 [ 11 – 13 ]. FTAs are important instruments of foreign economic integration that are designed to reduce cross-border trade and investment costs [ 14 ]. By June 2022, 355 FTAs were in force globally, representing a 17-fold increase since 1991 [ 15 ].…”

Section: Introductionmentioning

confidence: 99%

US and EU Free Trade Agreements and implementation of policies to control tobacco, alcohol, and unhealthy food and drinks: A quasi-experimental analysis

Barlow

Allen

2023

PLoS Med

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Background Identifying and tackling the factors that undermine regulation of unhealthy commodities is an essential component of effective noncommunicable disease (NCD) prevention. Unhealthy commodity producers may use rules in US and EU Free Trade Agreements (FTAs) to challenge policies targeting their products. We aimed to test whether there was a statistical relationship between US and EU FTA participation and reduced implementation of WHO-recommended policies. Methods and findings We performed a statistical analysis assessing the probability of at least partially implementing 10 tobacco, alcohol, and unhealthy food and drink policies in 127 countries in 2014, 2016, and 2019. We assessed differences in implementation of these policies in countries with and without US/EU FTAs. We used matching to conduct 48 covariate-adjusted quasi-experimental comparisons across 27 matched US/EU FTA members (87 country-years) and performed additional analyses and robustness checks to assess alternative explanations for our results. Out of our 48 tests, 19% (9/48) identified a statistically significant decrease in the predicted probability of at least partially implementing the unhealthy commodity policy in question, while 2% (1/48) showed an increase. However, there was marked heterogeneity across policies. At the level of individual policies, US FTA participation was associated with a 37% reduction (95%CI: −0.51 to −0.22) in the probability of fully implementing graphic tobacco warning policies, and a 53% reduction (95%CI: −0.63 to −0.43) in the probability of at least partially implementing smoke-free place policies. EU FTA participation was associated with a 28% reduction (95%CI: −0.45 to −0.10) in the probability of fully implementing graphic tobacco warning policies, and a 25% reduction (95%CI: −0.47 to −0.03) in the probability of fully implementing restrictions on child marketing of unhealthy food and drinks. There was a positive association with implementing fat limits and bans, but this was not robust. Associations with other outcomes were not significant. The main limitations included residual confounding, limited ability to discern precise mechanisms of influence, and potentially limited generalisability to other FTAs. Conclusions US and EU FTA participation may reduce the probability of implementing WHO-recommended tobacco and child food marketing policies by between a quarter and a half—depending on the FTA and outcome in question. Governments negotiating or participating in US/EU FTAs may need to establish robust health protections and mitigation strategies to achieve their NCD mortality reduction targets.

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Overview: The Evolution of Deep Trade Agreements

Cited by 18 publications

References 16 publications

Trade Liberalization Along the Firm Size Distribution: The Case of the EU-South Korea FTA

Trade Liberalization Along the Firm Size Distribution: The Case of the EU-South Korea FTA

Do Deep Regional Trade Agreements Improve Residents’ Health? A Cross-Country Study

US and EU Free Trade Agreements and implementation of policies to control tobacco, alcohol, and unhealthy food and drinks: A quasi-experimental analysis

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