Working Papers

Preferential Trading Arrangements: The Traditional and the New

Publication Number: ECESWP6-E

December, 1996

Author : Robert Z. Lawrence

Type : Working Papers

This paper contrasts regional preferential economic agreements of the traditional sort with those that have emerged in recent years. In addition, it assesses the implications of the Euro-Med initiatives for the Middle East. The paper argues that the new preferential trade agreements (PTAs) have the potential to generate greater economic growth impacts than traditional free trade agreements. Recent PTAs are characterized by a general process of increased openness to trade and investment, rather than import substitution, protection of markets, and managed trade.