Free trade agreements in EU prevent 'hub-and-spoke' trade relationships
The article examines how the European Union's expansion to include Eastern European countries has affected trade patterns within the Union. By analyzing trade flows between Central and Eastern European countries and EU-23, the study found that free trade agreements between EU countries and CEECs have influenced trade relationships. In particular, intra-periphery agreements have helped boost trade within the region and prevent a one-sided trade dynamic. The results suggest that future EU members in Southeastern Europe and the Southern Mediterranean should consider forming regional free-trade areas to avoid unequal trade relationships.