Trade-related agreements – a complement to formal trade policy?

News

Cooperation outside of formal trade policy is on the rise in trade-related agreements. These agreements are flexible and easier to conclude, but they also come with a set of challenges. In a new analysis, we identify and analyse 114 trade-related agreements.

A new National Board of Trade analysis shows that there are potential benefits and challenges associated with trade-related agreements (TRAs).
On the one hand, trade-related agreements are more flexible and easier to conclude than multilateral agreements and free trade agreements (FTAs). They can also build trust between trading partners, potentially laying the groundwork for future FTAs.

On the other hand, there is a risk that trade-related agreements will lack transparency, lead to legal ambiguity and give rise to power imbalances, especially as regards the inclusion of developing countries.

We conclude that while trade-related agreements are not a replacement for FTAs or multilateral trade agreements, they can provide solutions that address specific trade issues and foster cooperation. However, their effectiveness and long-term impact on trade need further analysis. There is also a need for increased transparency, inclusion and monitoring for the full potential of trade-related agreements to be realised.

Read more and download the analysis
A New Trade Policy Landscape – Mapping trade-related agreements