Deepening Trade Deals Boosts Global Welfare More Than New Agreements
This article studied how trade agreements beyond just reducing tariffs affect the economy. The researchers focused on 278 trade deals with various rules, estimating how these rules affect trade. By simulating different scenarios, they found that improving existing trade agreements produces more benefits than making new deals. Specifically, deepening trade agreements in Latin America and the Caribbean and East Asia and Pacific regions increased trade and welfare more than creating new agreements.