Free Trade Agreements

A Preliminary Analysis of Competition for Trade Liberalization between the EC/EU and EFTA

Competition for trade liberalization is best explained by the concept of “competitive liberalization”. The concept is used to analyze whether the EC/EU’s trade liberalization has affected the decision of the European Free Trade Association (EFTA) to sign free trade agreements (FTA) with third countries. In order for “competitive liberalization” to be initiated and imitated, we suggest that it is critical for decision-makers to attribute their countries’ lack of competitiveness to the liberalization measures of competitors.

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