Free Trade Agreements Slash Tariffs and Trade Barriers, Boosting Global Commerce
The article explores how free trade agreements help lower tariffs and non-tariff barriers for manufacturing industries worldwide. By analyzing data over time, the researchers found that these agreements reduce tariff rates by around 2.1% points and 1.5% points under different clauses. Non-tariff barriers are also decreased by about 6.6% points and 5.7% points. While being a member of the World Trade Organization doesn't have a big impact on tariff rates, it does help in reducing non-tariff barriers. These findings shed light on the effectiveness of free trade agreements in promoting global trade.