Volume 6 (20) Number 3 pp. 3-22
Importance and motives of preferential trade agreements in the EU’s external trade
As a result of previous multilateral negotiations tariff rates are generally low
and cannot explain the reasons for recent proliferation of preferential trade agreements
(PTAs). The aim of the paper is to look for other motivations of EU PTAs and to assess
their importance for the EU. The main research methods are statistical, review and assessment
of WTO documents and critical analysis of literature.
First, the present level of tariff protection on selected import markets was estimated.
This level illustrates the scale of countries’ interest in their elimination of the existing
tariffs. Also the share of preferential imports in the EU extra-trade was calculated
and compared with trade on MFN basis. Next, reasons for PTAs were identified. The
conclusions prove that 21st century PTAs are mainly motivated not by a reduction of
tariffs but by the willingness to reduce the regulatory barriers (contained in rules on
public procurement, environmental protection, etc.). The most dynamic trade nowadays
involves flows of accessories and services. In this situation the importance of
PTAs results from the fact that they serve as instruments eliminating national regulatory
barriers faced by exporters of goods and resources on foreign markets. Thus
PTAs support production and sales abroad. In the EU political motivations of PTAs
are important as well.
Keywords: preferential trade agreements, unilateral trade preferences, WTO, EU preferences, regulatory barriers, motives of PTAs.
|MLA||Kawecka-Wyrzykowska, Elżbieta. "Importance and motives of preferential trade agreements in the EU’s external trade." Economics and Business Review EBR 20.3 (2020): 3-22. DOI: 10.18559/ebr.2020.3.1|
|APA||Kawecka-Wyrzykowska, E. (2020). Importance and motives of preferential trade agreements in the EU’s external trade. Economics and Business Review EBR 20(3), 3-22 DOI: 10.18559/ebr.2020.3.1|
|ISO 690||KAWECKA-WYRZYKOWSKA, Elżbieta. Importance and motives of preferential trade agreements in the EU’s external trade. Economics and Business Review EBR, 2020, 20.3: 3-22. DOI: 10.18559/ebr.2020.3.1|