Swati Dhingra, Rebecca Freeman, Hanwei Huang, 21 January 2021

Deep trade agreements are widespread and have taken the world beyond tariff liberalisation in goods trade. As the importance of global supply chains and the services sector increased across the world, shallow tariff reductions gave way to deeper commitments that address non-tariff barriers and behind the border barriers to trade. By matching dissagregated trade data to the universe of deep trade agreements, this column examines their impact on trade in goods and services, and quantifies their welfare impacts. Welfare gains from the commitments involved in such agreements have played a crucial role in overall welfare gains since the conclusion of the Uruguay Round. 

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