Against the background of a changing landscape of trade and investment governance in the 21st century, characterised by the proliferation of deep preferential trade agreements (PTAs), this paper econometrically tests the importance of global value chain trade and regulatory differences in...

Preferential trade agreements have become deeper over time, often encompassing policy areas that go beyond traditional trade policy, such as investment, competition, and intellectual property rights protection. In the literature, a prominent argument why countries sign "deep" agreements is to...

Section I examines the implications of production sharing in the context of preferential trade liberalization. Of particular interest is the case in which a free trade area which is clearly trade-diverting under traditional circumstances, becomes trade-creating with joint production. Trade in...