Working Paper: CEPR ID: DP2629
Authors: Andr Sapir
Abstract: The paper examines the development of regional trade agreements (RTAs) between the European Community (EC) and its partners during the past decade. It finds that EC regionalism has recently entered a new phase: regional trade agreements with countries outside Europe. As a result of parallel initiatives by the United States, the world trading system finds itself in virgin, and potentially dangerous, territory.
Keywords: regional trade agreements; world trading system
JEL Codes: F13; F15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Proliferation of RTAs (R50) | Transformation of EC regionalism (F15) |
| Transformation of EC regionalism (F15) | New phase of regionalism (R11) |
| New phase of regionalism (R11) | Engagement in full-blooded regional trade arrangements outside Europe (F15) |
| Engagement in full-blooded regional trade arrangements outside Europe (F15) | Emergence of two major trading blocs (F15) |
| Emergence of two major trading blocs (F15) | Competitive dynamic (D43) |
| Regional trade agreements (F13) | Effects on global trade dynamics (F69) |
| Policy changes within the EC (F55) | Shift towards reciprocal RTAs (F15) |