Regional Integration

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Alan Winters and Tony Venables - who have both looked at regional integration agreements and tariffs and trade barriers

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Regional integration agreements (RIAs) are based on preferential reductions in tariffs and other trade barriers between member states. The last decade has seen rapid growth of RIAs, with developments in Europe (EU enlargement and bilateral agreements), the Americas (NAFTA, MERCOSUR and numerous bilaterals), Asia (development of the ASEAN free trade area, the South Asian free trade area, and APEC) and Africa (the formation of new regional agreements and the rejuvenation of old ones). As of mid-2000, 114 RIAs had been notified to the WTO and were in effect. More than one- third of world trade now takes place within such agreements, or almost 60 percent of world trade, if the Asia Pacific Economic Cooperation (APEC) is included.

The CEP's research in this area includes:

• Venables, A.J. (2001) 'Winners and Losers from Regional Integration Agreements', Department of Economics, London School of Economics, January 23.
• Soloaga, I. and L.A. Winters (1999) 'Regionalism in the Nineties: What Effect on Trade?', CEPR Discussion Paper 2183.
• Both Venables and Winters were involved in the major study: World Bank (2000) 'Trade Blocs', World Bank and Oxford University Press.

More info on the World Bank's site. Other useful links:

• The World Bank maintains a site on regional integration.
• The World Trade Organisation (WTO) also has a website on the topic.
• The Centre for International Development at Harvard University hosts a site on global trade negotiations