Eia Economic Integration Agreement

10:23 am Uncategorized

Trade in services is growing faster than merchandise trade (Koncz and Flatness, 2007). As a result, multilateral and bilateral trade negotiations have become increasingly involved in service issues. Although negotiations can be generally difficult, services have been particularly difficult. It could come from the characteristics of the services. First, there are different types of services that could be an obstacle to a quick agreement. The four modes of transport are: cross-border trade in services (mode 1), consumption abroad (mode 2), commercial presence (mode 3), temporary movements of individuals (mode 4). In addition, barriers in the service sector differ and are hampered by regulatory barriers to market access and domestic treatment of foreign service providers. Among ATRs, commitments can vary considerably. Since the EIA is the only type of agreement available when countries negotiate services, it may be important to consider the potential heterogeneity of EIAs. In order to differentiate the EIS according to the extent of liberalisation, I have gathered information on four types of services available in the legal texts of the RTA. I focused my analysis on the presence of 30 articles or not, which gives a weight of zero if the article was not included in the agreement.

From these partitions according to the mode I have calculated, I do a hierarchical clustering to classify and divide the EIS into three groups according to its opening. (Cluster 3, EIAhigh, corresponds to the deepest chord, cluster 2, UVP middle, a shallower concordance, etc.). If two or more countries negotiate an agreement, they generally expect increased trade flows. While it seems clear that trade between partners would increase in response to lower tariff and/or non-tariff barriers, some studies conclude that the impact of a trade agreement on intra-intra-Community trade is not significant. However, Baier and Bergstrand (2002) found positive effects on the trade in RTAs and pointed out that the common specification of the gravitational equation underestimated the RTA coefficient (about 75% in OLS), as in Trefler (1993) due to an endogenous distortion. Baier and Bergstrand (2007) conclude that free trade agreements (FTAs) increase trade by 58%, using a fixed-effects panel and taking into account multilateral resistance conditions. Ms. Amélie Guillin, PhD student in international trade (University of Paris I) and scientific collaborator at University College Dublin in the Network for Globalization, Investment and Trade in Services (GIST-CEPR). Their research focuses primarily on trade in services and regional trade agreements.

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