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2012•RePEc: Research Papers in EconomicsRequires access

The impacts of Regional Trade Agreements in force in Europe on trade in services

Amélie Guillin

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Abstract

Most of countries in the European continent are related to each other by a Regional Trade Agreement (RTA) that includes services. The aim of this study is to analyze the pattern of trade in services in Europe. In considering the three main important RTAs in force in Europe, I find that all the RTAs do not have similar impacts on trade in services. Indeed, European Union and European Economic Area are trade creating while European Free Trade Association (EFTA) does not have a significant impact on intra-members trade and is more trade diverting than the other RTAs. Moreover, new entrants have a positive propensity to trade services with the members of the EFTA. Trade impacts of a given RTA vary substantially across signatories.

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What this paper is about

Most of countries in the European continent are related to each other by a Regional Trade Agreement (RTA) that includes services. The aim of this study is to analyze the pattern of trade in services in Europe. In considering the three main important RTAs in force in Europe, I find that all the RTAs do not have similar impacts on trade in services. Indeed, European Union and European Economic Area are trade creating while European Free Trade Association (EFTA) does not have a significant impact on intra-members trade and is more trade diverting than the other RTAs. Moreover, new entrants have a positive propensity to trade services with the members of the EFTA. Trade impacts of a given RTA vary substantially across signatories.

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Available abstract

Most of countries in the European continent are related to each other by a Regional Trade Agreement (RTA) that includes services. The aim of this study is to analyze the pattern of trade in services in Europe. In considering the three main important RTAs in force in Europe, I find that all the RTAs do not have similar impacts on trade in services. Indeed, European Union and European Economic Area are trade creating while European Free Trade Association (EFTA) does not have a significant impact on intra-members trade and is more trade diverting than the other RTAs. Moreover, new entrants have a positive propensity to trade services with the members of the EFTA. Trade impacts of a given RTA vary substantially across signatories.

Key concepts: International trade, Regional trade, European union, Trade barrier, Economic integration, International free trade agreement, International economics, Trade in services

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