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Exploring the Links between Bilateral and Regional Trade Agreements and Merchandise Trade

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  • Felix Barbalet
  • Jared Greenville
  • Wayne Crook
  • Paul Gretton
  • Robert Breunig

Abstract

Over 200 bilateral and regional trade agreements are currently in force, yet their impact remains a topic of debate. We analyse effects of 27 agreements that are of particular importance for Australia on the value of merchandise trade flows using data from 1970 up to the global financial crisis in 2008. We show that preferential trade agreements generally increase trade between members but that there are often offsetting negative effects on trade with non-signatories. In contrast to regional trading blocs and bilateral accords, agreements more oriented towards open trade principles have a positive impact on all trade flows of member nations.

Suggested Citation

  • Felix Barbalet & Jared Greenville & Wayne Crook & Paul Gretton & Robert Breunig, 2015. "Exploring the Links between Bilateral and Regional Trade Agreements and Merchandise Trade," Asia and the Pacific Policy Studies 201537, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:appswp:201537
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    Cited by:

    1. Timsina, Krishna P. & Culas, Richard J., . "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3).
    2. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.
    3. Yoon Heo & Nguyen Khanh Doanh, 2020. "Is NAFTA Trade‐Creating or Trade‐Diverting? A System GMM Approach," Economic Papers, The Economic Society of Australia, vol. 39(3), pages 222-238, September.
    4. Lee, Chien-Chiang & Zhao, Ya-Nan, 2025. "What affects national innovative capacity? The role of economic growth and trade openness," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1099-1118.
    5. Safet KURTOVIC & Blerim HALILI & Nehat MAXHUNI & Sead TALOVIC, 2016. "Liberalization of Trade with the EFTA Countries: Some Evidence from Bosnia and Herzegovina - La liberalizzazione del commercio con i paesi dell’ EFTA: evidenze dalla Bosnia e Herzegovina," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 69(3), pages 213-232.
    6. Yahui Qu & Ruxu Zhang, 2023. "Assessing the effects of ROO and tariff margin on China-ASEAN free trade agreement utilization," PLOS ONE, Public Library of Science, vol. 18(5), pages 1-20, May.

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