This report shows that regional trade agreements stimulate trade effectively. Customs unions and other deep integration agreements have the strongest trade effects.
Since the early 1990s, there has been a sharp increase in regional trade agreements. Today, they are a familiar part of the world trading system. Given the importance of regional trade agreements for today’s global trade, it is surprising that relatively little solid information is available regarding their effects. In recent years, however, scholars have made significant progress in estimating the trade effects of regional trade agreements. In an effort to compile the new evidence in an easily accessible format, the National Board of Trade Sweden now publishes a review of the most recent research.