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Deep Integration And Regional Trade Agreements

A regional trade agreement (RTA) is a treaty between two or more governments that sets out the trade rules applicable to all signatories. Regional trade agreements include the North American Free Trade Agreement (NAFTA), the Central American-Dominican Republic Free Trade Agreement (CAFTA-DR), the European Union (EU) and the Asia-Pacific Economic Cooperation (APEC). Deep integration is the hallmark of the modern Regional Trade Agreement (RTA). IAS, which have deep integration rules, aim to enhance the predictability of partner countries` enterprise markets through three main functions: the protection of foreign companies and their interests; liberalization of barriers to trade „below the border“; and harmonizing national trade rules to increase the efficiency of international production. This chapter presents the main lines of research on the causes and consequences of deep commitments to FDI integration and highlights avenues for future research, focusing on the importance of trade within global and regional production networks and the role of multinational enterprises as political actors in host countries. The chapter also calls for future work to address the problem of identifying the „baseline“ in assessing the strength of deep integration obligations and the likelihood of regulatory disorder due to the diversity of deep integration models coded in FDI. Regional trade agreements (SAAs) now cover more than half of international trade and coincide with global multilateral agreements within the framework of the World Trade Organization (WTO). In recent years, many countries have actively attempted to establish new bilateral and regional — and often more modern and advanced — trade agreements aimed at increasing trade and stimulating economic growth. The current dissemination of SPAs partly reflects the need for deeper integration than has been achieved through older multilateral agreements. All our research and trade analysis can be read for free online on the OECD iLibrary Keywords: regional trade agreements, deep integration, trade barriers „behind the border“, production networks multinational enterprises, regulatory disorder Deep trade agreements are an important institutional infrastructure for regional integration. . . .