A preferential trade zone (including preferential trade agreements, PTA) is a trading bloc that offers preferential access to certain products from participating countries. This requires a reduction in tariffs, but not in their total abolition. A ZEP can be implemented through a trade pact. This is the first step in economic integration. The border between a EPZ and a Free Trade Area (EEA) can be blurred, as almost all ATPs have the main objective of becoming a free trade agreement in accordance with the General Agreement on Tariffs and Trade. This paper examines the impact of preferential trade agreements (EPAs) on facilitating international trade flows linking production networks. We consider more than 250 PTAs with trade flows that are distinguished in parts, components and terminal products for the period 1979-2008. Estimates of the gravitational equation indicate that the parallel annual effects of PTA formation on the trade in parts and components are not visible, while PTAs have positive and pervasive effects on both types of trade flows 6 and 9 years after the formation of the PTA. Keywords: preferential trade agreements, Regional Trade Agreements Multinational Expansion Strategy, Gravitational Equation JL Classification: F15, F53 The recent proliferation of bilateral EDPs and the emergence of mega-PTAs (broad regional trade agreements such as the Transatlantic Trade and Investment Partnership (TTIP) or the Trans-Pacific Partnership (TPP) appear to be a global trading system managed exclusively within the WTO, unrealistic and taking into account the interactions between trade systems. The increasing complexity of the international trading system resulting from the proliferation of EPZs should be taken into account when considering the choice of countries or regions used by countries or regions to promote their trade relations and environmental agendas.  ATPs have grown rapidly; In the 1990s, there were just over 100 PTAs. In 2014, there were more than 700.  Since the beginning of the 20th century, several hundred bilateral PTAs have been signed.
The Canada Research Chair in International Political Economy`s TREND project lists approximately 700 trade agreements, the vast majority of which are bilateral.  In 2004, Scott Baier and Jeffrey Bergstrand published that there were three economic determinants essential to the formation of PTA. Countries are more likely to participate in ATPs when they have lower transportation costs and larger economies. Third, countries of similar economic size should benefit the most from PTA training. Economic determinants such as GDP, similarity in economic size and distance between countries rightly predict more than 80% of the PTA from 2020.  If you know the missing items that cite them, you can help us create those links by adding the corresponding references in the same way as above, for each reference item. If you are a registered author of this article, you can also check the “Quotes” tab in your RePEc Author service profile, as some quotes may wait for confirmation. If CitEc has recognized a reference but has not linked an element of RePEc to it, you can use this form to help you. Please note that discussion documents are work at different stages of progress and that most have not been processed and have been harmed and may contain errors of fact or judgment. Revised versions of this work can then be published in more formal series of publications. The views expressed in this publication are those of the authors.
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