Preferential Trade Agreements and Their Role in World Trade

The author investigates the effects of preferential trade agreements (PTAs) on bilateral trade flows using a comprehensive database of PTAs in force and a detailed matrix of world trade. He shows that total trade between PTA partners is a poor proxy for preferential trade (trade in tariff lines wher...

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Main Author:	Medvedev, Denis
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	AD VALOREM AGREEMENT ON TRADE ANDEAN PACT ANTI-DUMPING DUTY BASE YEAR BILATERAL AGREEMENTS BILATERAL TRADE CENTRAL AMERICAN CHANGES IN TRADE COMMON MARKET COMPETITION POLICIES CONCESSIONS CONSUMER PREFERENCES CURRENCY CURRENCY UNION CURRENCY UNIONS CUSTOMS CUSTOMS PROCEDURES CUSTOMS UNION CUSTOMS UNIONS DATE OF ENTRY INTO FORCE DEVELOPING REGIONS DUMPING ECONOMIC COOPERATION ECONOMIC RELATIONS ELASTICITY EUROPEAN UNION EXCHANGE RATE EXPORT DIVERSION EXPORT PRODUCTS EXPORTS EXTERNAL PROTECTION EXTERNAL TARIFF FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA FREE TRADE AREAS FUNCTIONAL FORMS GATS GDP GDP PER CAPITA GENERAL AGREEMENT ON TRADE IN SERVICES GENERAL SYSTEM OF PREFERENCES GLOBAL FREE TRADE GLOBAL LEVEL GLOBAL TRADE GLOBAL TRADING GRAVITY APPROACH GRAVITY EQUATION GRAVITY ESTIMATES GRAVITY FRAMEWORK GRAVITY MODEL GRAVITY MODELS IMPORT DATA IMPORTED GOODS IMPORTS INCOME INCOME ELASTICITIES INCOME GROUPS INTEGRATION AGREEMENTS INTERNATIONAL TRADE LATIN AMERICAN MARKET ACCESS MARKET STRUCTURE MERCHANDISE TRADE FLOWS MFN MOST FAVORED NATION MULTILATERAL TARIFFS MULTIPLE AGREEMENTS MUTUAL RECOGNITION MUTUAL RECOGNITION OF STANDARDS POLICY RESEARCH POTENTIAL BENEFITS PREFERENTIAL AGREEMENT PREFERENTIAL AGREEMENTS PREFERENTIAL BASIS PREFERENTIAL IMPORTS PREFERENTIAL LIBERALIZATION PREFERENTIAL RATES PREFERENTIAL REGIME PREFERENTIAL SCHEME PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS RECIPROCITY REGIONAL TRADE RULES OF ORIGIN SPECIFIC COMMITMENTS SUB-SAHARAN AFRICA SYSTEM OF PREFERENCES TARIFF DATA TARIFF LINE TARIFF LINES TARIFF REDUCTION TARIFF REGIMES TARIFF SCHEDULES TARIFF STRUCTURE TRADE AGREEMENT TRADE BARRIERS TRADE COMMISSION TRADE COSTS TRADE CREATION TRADE DIVERSION TRADE FLOW TRADE FLOW DATA TRADE FLOWS TRADE IN GOODS TRADE LIBERALIZATION TRADE POLICY TRADE POLICY AGENDA TRADE STRUCTURE TRADE VARIABLES TRADE VOLUMES TRADING PARTNERS TRADING SYSTEM TREATMENT UNILATERAL PREFERENCES VALUE OF TRADE WORLD TRADE WORLD TRADE ORGANIZATION WTO
Online Access:	http://documents.worldbank.org/curated/en/2006/10/7129768/preferential-trade-agreements-role-world-trade http://hdl.handle.net/10986/9012

id	okr-10986-9012
recordtype	oai_dc
spelling	okr-10986-90122021-04-23T14:02:41Z Preferential Trade Agreements and Their Role in World Trade Medvedev, Denis AD VALOREM AGREEMENT ON TRADE ANDEAN PACT ANTI-DUMPING DUTY BASE YEAR BILATERAL AGREEMENTS BILATERAL TRADE CENTRAL AMERICAN CHANGES IN TRADE COMMON MARKET COMPETITION POLICIES CONCESSIONS CONSUMER PREFERENCES CURRENCY CURRENCY UNION CURRENCY UNIONS CUSTOMS CUSTOMS PROCEDURES CUSTOMS UNION CUSTOMS UNIONS DATE OF ENTRY INTO FORCE DEVELOPING REGIONS DUMPING ECONOMIC COOPERATION ECONOMIC RELATIONS ELASTICITY EUROPEAN UNION EXCHANGE RATE EXPORT DIVERSION EXPORT PRODUCTS EXPORTS EXTERNAL PROTECTION EXTERNAL TARIFF FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA FREE TRADE AREAS FUNCTIONAL FORMS GATS GDP GDP PER CAPITA GENERAL AGREEMENT ON TRADE IN SERVICES GENERAL SYSTEM OF PREFERENCES GLOBAL FREE TRADE GLOBAL LEVEL GLOBAL TRADE GLOBAL TRADING GRAVITY APPROACH GRAVITY EQUATION GRAVITY ESTIMATES GRAVITY FRAMEWORK GRAVITY MODEL GRAVITY MODELS IMPORT DATA IMPORTED GOODS IMPORTS INCOME INCOME ELASTICITIES INCOME GROUPS INTEGRATION AGREEMENTS INTERNATIONAL TRADE LATIN AMERICAN MARKET ACCESS MARKET STRUCTURE MERCHANDISE TRADE FLOWS MFN MOST FAVORED NATION MULTILATERAL TARIFFS MULTIPLE AGREEMENTS MUTUAL RECOGNITION MUTUAL RECOGNITION OF STANDARDS POLICY RESEARCH POTENTIAL BENEFITS PREFERENTIAL AGREEMENT PREFERENTIAL AGREEMENTS PREFERENTIAL BASIS PREFERENTIAL IMPORTS PREFERENTIAL LIBERALIZATION PREFERENTIAL RATES PREFERENTIAL REGIME PREFERENTIAL SCHEME PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS RECIPROCITY REGIONAL TRADE RULES OF ORIGIN SPECIFIC COMMITMENTS SUB-SAHARAN AFRICA SYSTEM OF PREFERENCES TARIFF DATA TARIFF LINE TARIFF LINES TARIFF REDUCTION TARIFF REGIMES TARIFF SCHEDULES TARIFF STRUCTURE TRADE AGREEMENT TRADE BARRIERS TRADE COMMISSION TRADE COSTS TRADE CREATION TRADE DIVERSION TRADE FLOW TRADE FLOW DATA TRADE FLOWS TRADE IN GOODS TRADE LIBERALIZATION TRADE POLICY TRADE POLICY AGENDA TRADE STRUCTURE TRADE VARIABLES TRADE VOLUMES TRADING PARTNERS TRADING SYSTEM TREATMENT UNILATERAL PREFERENCES VALUE OF TRADE WORLD TRADE WORLD TRADE ORGANIZATION WTO The author investigates the effects of preferential trade agreements (PTAs) on bilateral trade flows using a comprehensive database of PTAs in force and a detailed matrix of world trade. He shows that total trade between PTA partners is a poor proxy for preferential trade (trade in tariff lines where preferences are likely to matter): while the former amounted to one-third of global trade in 2000-02, the latter was between one-sixth and one-tenth of world trade. His gravity model estimates indicate that using total rather than preferential trade to assess the impact of PTAs leads to a significant downward bias in the PTA coefficient. The author finds that product exclusions and long phase-in periods significantly limit preferential trade, and their removal could more than double trade in tariff lines above 3 percent of most-favored-nation (MFN) duties. He also shows that the effects of PTAs on trade vary by type of agreement and are increasing in the incomes of PTA partners. 2012-06-26T14:21:07Z 2012-06-26T14:21:07Z 2006-10 http://documents.worldbank.org/curated/en/2006/10/7129768/preferential-trade-agreements-role-world-trade http://hdl.handle.net/10986/9012 English en_US Policy Research Working Paper; No. 4038 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AD VALOREM AGREEMENT ON TRADE ANDEAN PACT ANTI-DUMPING DUTY BASE YEAR BILATERAL AGREEMENTS BILATERAL TRADE CENTRAL AMERICAN CHANGES IN TRADE COMMON MARKET COMPETITION POLICIES CONCESSIONS CONSUMER PREFERENCES CURRENCY CURRENCY UNION CURRENCY UNIONS CUSTOMS CUSTOMS PROCEDURES CUSTOMS UNION CUSTOMS UNIONS DATE OF ENTRY INTO FORCE DEVELOPING REGIONS DUMPING ECONOMIC COOPERATION ECONOMIC RELATIONS ELASTICITY EUROPEAN UNION EXCHANGE RATE EXPORT DIVERSION EXPORT PRODUCTS EXPORTS EXTERNAL PROTECTION EXTERNAL TARIFF FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA FREE TRADE AREAS FUNCTIONAL FORMS GATS GDP GDP PER CAPITA GENERAL AGREEMENT ON TRADE IN SERVICES GENERAL SYSTEM OF PREFERENCES GLOBAL FREE TRADE GLOBAL LEVEL GLOBAL TRADE GLOBAL TRADING GRAVITY APPROACH GRAVITY EQUATION GRAVITY ESTIMATES GRAVITY FRAMEWORK GRAVITY MODEL GRAVITY MODELS IMPORT DATA IMPORTED GOODS IMPORTS INCOME INCOME ELASTICITIES INCOME GROUPS INTEGRATION AGREEMENTS INTERNATIONAL TRADE LATIN AMERICAN MARKET ACCESS MARKET STRUCTURE MERCHANDISE TRADE FLOWS MFN MOST FAVORED NATION MULTILATERAL TARIFFS MULTIPLE AGREEMENTS MUTUAL RECOGNITION MUTUAL RECOGNITION OF STANDARDS POLICY RESEARCH POTENTIAL BENEFITS PREFERENTIAL AGREEMENT PREFERENTIAL AGREEMENTS PREFERENTIAL BASIS PREFERENTIAL IMPORTS PREFERENTIAL LIBERALIZATION PREFERENTIAL RATES PREFERENTIAL REGIME PREFERENTIAL SCHEME PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS RECIPROCITY REGIONAL TRADE RULES OF ORIGIN SPECIFIC COMMITMENTS SUB-SAHARAN AFRICA SYSTEM OF PREFERENCES TARIFF DATA TARIFF LINE TARIFF LINES TARIFF REDUCTION TARIFF REGIMES TARIFF SCHEDULES TARIFF STRUCTURE TRADE AGREEMENT TRADE BARRIERS TRADE COMMISSION TRADE COSTS TRADE CREATION TRADE DIVERSION TRADE FLOW TRADE FLOW DATA TRADE FLOWS TRADE IN GOODS TRADE LIBERALIZATION TRADE POLICY TRADE POLICY AGENDA TRADE STRUCTURE TRADE VARIABLES TRADE VOLUMES TRADING PARTNERS TRADING SYSTEM TREATMENT UNILATERAL PREFERENCES VALUE OF TRADE WORLD TRADE WORLD TRADE ORGANIZATION WTO
spellingShingle	AD VALOREM AGREEMENT ON TRADE ANDEAN PACT ANTI-DUMPING DUTY BASE YEAR BILATERAL AGREEMENTS BILATERAL TRADE CENTRAL AMERICAN CHANGES IN TRADE COMMON MARKET COMPETITION POLICIES CONCESSIONS CONSUMER PREFERENCES CURRENCY CURRENCY UNION CURRENCY UNIONS CUSTOMS CUSTOMS PROCEDURES CUSTOMS UNION CUSTOMS UNIONS DATE OF ENTRY INTO FORCE DEVELOPING REGIONS DUMPING ECONOMIC COOPERATION ECONOMIC RELATIONS ELASTICITY EUROPEAN UNION EXCHANGE RATE EXPORT DIVERSION EXPORT PRODUCTS EXPORTS EXTERNAL PROTECTION EXTERNAL TARIFF FREE TRADE FREE TRADE AGREEMENT FREE TRADE AREA FREE TRADE AREAS FUNCTIONAL FORMS GATS GDP GDP PER CAPITA GENERAL AGREEMENT ON TRADE IN SERVICES GENERAL SYSTEM OF PREFERENCES GLOBAL FREE TRADE GLOBAL LEVEL GLOBAL TRADE GLOBAL TRADING GRAVITY APPROACH GRAVITY EQUATION GRAVITY ESTIMATES GRAVITY FRAMEWORK GRAVITY MODEL GRAVITY MODELS IMPORT DATA IMPORTED GOODS IMPORTS INCOME INCOME ELASTICITIES INCOME GROUPS INTEGRATION AGREEMENTS INTERNATIONAL TRADE LATIN AMERICAN MARKET ACCESS MARKET STRUCTURE MERCHANDISE TRADE FLOWS MFN MOST FAVORED NATION MULTILATERAL TARIFFS MULTIPLE AGREEMENTS MUTUAL RECOGNITION MUTUAL RECOGNITION OF STANDARDS POLICY RESEARCH POTENTIAL BENEFITS PREFERENTIAL AGREEMENT PREFERENTIAL AGREEMENTS PREFERENTIAL BASIS PREFERENTIAL IMPORTS PREFERENTIAL LIBERALIZATION PREFERENTIAL RATES PREFERENTIAL REGIME PREFERENTIAL SCHEME PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS RECIPROCITY REGIONAL TRADE RULES OF ORIGIN SPECIFIC COMMITMENTS SUB-SAHARAN AFRICA SYSTEM OF PREFERENCES TARIFF DATA TARIFF LINE TARIFF LINES TARIFF REDUCTION TARIFF REGIMES TARIFF SCHEDULES TARIFF STRUCTURE TRADE AGREEMENT TRADE BARRIERS TRADE COMMISSION TRADE COSTS TRADE CREATION TRADE DIVERSION TRADE FLOW TRADE FLOW DATA TRADE FLOWS TRADE IN GOODS TRADE LIBERALIZATION TRADE POLICY TRADE POLICY AGENDA TRADE STRUCTURE TRADE VARIABLES TRADE VOLUMES TRADING PARTNERS TRADING SYSTEM TREATMENT UNILATERAL PREFERENCES VALUE OF TRADE WORLD TRADE WORLD TRADE ORGANIZATION WTO Medvedev, Denis Preferential Trade Agreements and Their Role in World Trade
relation	Policy Research Working Paper; No. 4038
description	The author investigates the effects of preferential trade agreements (PTAs) on bilateral trade flows using a comprehensive database of PTAs in force and a detailed matrix of world trade. He shows that total trade between PTA partners is a poor proxy for preferential trade (trade in tariff lines where preferences are likely to matter): while the former amounted to one-third of global trade in 2000-02, the latter was between one-sixth and one-tenth of world trade. His gravity model estimates indicate that using total rather than preferential trade to assess the impact of PTAs leads to a significant downward bias in the PTA coefficient. The author finds that product exclusions and long phase-in periods significantly limit preferential trade, and their removal could more than double trade in tariff lines above 3 percent of most-favored-nation (MFN) duties. He also shows that the effects of PTAs on trade vary by type of agreement and are increasing in the incomes of PTA partners.
format	Publications & Research :: Policy Research Working Paper
author	Medvedev, Denis
author_facet	Medvedev, Denis
author_sort	Medvedev, Denis
title	Preferential Trade Agreements and Their Role in World Trade
title_short	Preferential Trade Agreements and Their Role in World Trade
title_full	Preferential Trade Agreements and Their Role in World Trade
title_fullStr	Preferential Trade Agreements and Their Role in World Trade
title_full_unstemmed	Preferential Trade Agreements and Their Role in World Trade
title_sort	preferential trade agreements and their role in world trade
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/10/7129768/preferential-trade-agreements-role-world-trade http://hdl.handle.net/10986/9012
_version_	1764406588609658880

Preferential Trade Agreements and Their Role in World Trade

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