Maliszewska M, Z. Olekseyuk and I. Osorio-Rodarte, March 2018, economic and distributive impacts of a comprehensive and progressive agreement on the Trans-Pacific Partnership: the case of Vietnam. Washington, D.C.: World Bank Group. Deep trade agreements are an important institutional infrastructure for regional integration. They reduce business costs and set many rules in which economies are active. If designed effectively, they can improve political cooperation between countries and thus promote international trade and international investment, economic growth and social well-being. Studies by the World Bank Group have shown that a regional trade agreement (RTA) is a treaty between two or more governments that sets trade rules for all signatories. Examples of regional trade agreements include the North American Free Trade Agreement (NAFTA), the Central American-Dominican Free Trade Agreement (CAFTA-DR), the European Union (EU) and the Asia-Pacific Economic Cooperation (APEC). Regional trade agreements are multiplying and changing their nature. In 1990, 50 trade agreements were in force. In 2017, there were more than 280.
In many trade agreements, negotiations today go beyond tariffs and cover several policy areas relating to trade and investment in goods and services, including rules that go beyond borders, such as competition policy, public procurement rules and intellectual property rights. ATRs, which cover tariffs and other border measures, are “flat” agreements; THE RTAs, which cover more policy areas at the border and at the back of the border, are “deep” agreements. In collaboration with partners such as the WTO and the OECD, the World Bank Group provides information and support to countries wishing to sign or deepen regional trade agreements. WBG`s work includes Osnago, A., N. Rocha and M. Ruta. Coming up. “Deep Trade Agreements and Vertical FDI: The Devil Is in the Details.” Canadian Journal of Economics.
Osnago, A., N. Rocha and M. Ruta. 2017. “Do deep trade agreements directly promote vertical trade agreements for this?” World Bank Economic Review 30 (supplement): 119-125. Mulabdic, A., A. Osnago and M. Ruta. “Deep Integration and UK-EU Trade Relations.” In The Economics of UK-EU Relations, published by Nauro F. Campos and Fabrizio Coricelli, 253-282. Springer.
Ruta, M. 2017. “Preferential Trade Agreements and Global Value Chains: Theory, Evidence, and Open Questions.” Policy Research Working Paper Serie 8190. World Bank, Washington, DC.