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Deep and comprehensive free trade agreements

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1028-3625
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EUI RSCAS; 2016/29; Global Governance Programme-219; [Global Economics]
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HOEKMAN, Bernard M., Deep and comprehensive free trade agreements, EUI RSCAS, 2016/29, Global Governance Programme-219, [Global Economics] - https://hdl.handle.net/1814/41405
Abstract
This paper reviews elements of the history of association agreements between the EU and countries that are covered by the European Neighbourhood Policy (ENP). It considers the rationale for negotiation of Deep and Comprehensive Free Trade Areas with neighbouring countries based on research that assesses the design, salience and incentive effects of such agreements. It makes a case that developments in the global economy and the experience with using trade agreements to pursue deeper integration of markets suggest that alternatives to DCFTAs may be more effective instruments for cooperation for both sides. The 2015 review of the ENP creates new opportunities to consider such alternatives. These could span sectoral agreements, more focused efforts targeting specific policy areas that have a significant impact on trade costs, and initiatives that centre on the adoption of international standards and internationally recognized good regulatory practices.
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