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ABC of Preferential Trade Agreements
Frequently Asked Questions
Monographs on Globalisation and India – Myths and Realities, #14

ABC of Preferential Trade Agreements
Frequently Asked Questions
Monographs on Globalisation and India – Myths and Realities, #14

Published by

CUTS Centre for International Trade, Economics & Environment D-217, Bhaskar Marg, Bani Park Jaipur 302 016, India Email: citee@cuts.org Website: www.cuts-international.org/www.cuts-citee.org

Researched and compiled by Kritika Kapil*

Printed by Jaipur Printers P. Ltd. Jaipur 302 001

© CUTS International, 2009

* Research Assistant, CUTS CITEE Niru Yadav, Senior Research Associate, CUTS International contributed to this Monograph.

#0914

Contents
Preface .......................................................................................................... i Introduction ............................................................................................... iii 1. 2. 3. 4. 5. 6. 7. 8. 9. What is a PTA? What are the Different Types? ............................ 1 What has led to the Growth of PTAs? .......................................... 5 How have PTAs Evolved? ............................................................ 6 How are PTAs Inconsistent with GATT Rules? ............................ 9 What are Rules of Origin? ........................................................... 11 What are Negative and Positive List Approaches? ..................... 13 What are the Effects of PTAs on Investment? ............................ 15 What are the Effects of PTAs on Services? ................................ 17 What are Partnership Agreements? ............................................. 19

10. What are the Consequences of PTAs? ........................................ 21 11. PTAs: Building Blocks or Barriers? ........................................... 24

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