Regional Trade Agreements Don't Harm Non-Members, Boosting Global Prosperity
This study looked at whether regional trade deals hurt countries not in the agreement. They studied six agreements in Latin America and Europe and found that these deals don't divert trade from non-members. They focused on specific industries and found that giving preferences to regional members does not stop others from trading. They also saw that when tariffs are cut for regional members, they tend to reduce tariffs for all outsiders in that industry too. In conclusion, being part of a regional agreement doesn't do much harm to countries outside the deal.