Trade Creation and Diversion in Deep Agreements

AADITYA MATTOO, ALEN MULABDIC, MICHELE RUTA

Workshop on the “Economics of

Disclaimer: The views expressed in this article are Agreements” those of the authors and they do not necessarily Villars-sur-Ollon, February 2017 represent the views of the World Bank Group Questions and motivation

• Since 1990 there has been a surge of preferential trade agreements (PTAs).

• The nature of these agreements has been changing as well, with PTAs covering measures beyond tariffs (“deep” PTAs).

• Questions: • What policy areas do deep agreements cover? • What are their trade effect on members and non-members? • What would be the consequences of undoing US PTAs?

Deep trade agreements Preview of main findings

• Content of PTAs • The number of provisions has increased of a factor of 2 in the last quarter century

• Viner revisited • Deep agreements lead to more trade creation and less than shallow agreements

• Application • Undoing US deep PTAs would have a large negative impact on the US and its trade partners

Deep trade agreements Literature review

• Content of PTAs • Classification of US and EU PTAs (Horn et al. 2010) • Extension to 100 PTAs (WTO, 2011) • Extension to 279 PTAs (Hofmann et al. 2016)

• Trade Creation • Dummies (e.g. Rose (2004)) • Type of agreements: one-way PTAs, two-way PTAs, FTAs, customs unions, common markets and economic unions (Baier et al. (2014))

• Trade Diversion • Dummies (e.g. Dai et al. (2014)) • Continuous variables for trade diversion (Baldwin and Jaimovich (2012); Fugazza and Nicita (2013))

Deep trade agreements The content of PTAs Since 1990 there has been a surge of preferential trade agreements (PTAs) 35 300

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0 0 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Number of PTAs Cumulative

Deep trade agreements On average one country participates in fourteen agreements

Deep trade agreements The continuing proliferation of PTAs over the last 30 years involves a wide network of participants

Deep trade agreements PTAs are also becoming “deeper”: Coverage in terms of policy areas has widened over time

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More than 20 Between 10 and 20 Less than 10 Not in force Cumulative

Deep trade agreements The Database: 279 Agreements (http://data.worldbank.org/data-catalog/deep-trade-agreements)

"WTO plus" "WTO extra" areas covered by the WTO areas beyond the WTO  Tariffs industrial goods  Anti-corruption  Financial assistance  Tariffs agricultural goods  Competition policy  Health  Customs administration  Environmental laws  Human Rights   IPR  Illegal immigration  SPS measures  Investment measures  Illicit drugs  State trading enterprises  Labour market  Industrial cooperation  TBT measures  Movement of capital  Information society  Countervailing measures  Consumer protection  Mining  Anti-  Data protection  Money laundering  State aid  Approximation of legislation  Nuclear safety  Public procurement  Agriculture  Political dialogue  TRIMS measures  Audiovisual  Public administration  GATS  Civil protection  Regional cooperation  TRIPS  Innovation policies  Research and technology  Cultural cooperation  SMEs  dialogue  Social Matters  Education and training  Statistics  Energy  Taxation  Terrorism  Visa and asylum The Database: 279 Agreements (http://data.worldbank.org/data-catalog/deep-trade-agreements)

"WTO plus" "WTO extra" areas covered by the WTO areas beyond the WTO  Tariffs industrial goods  Anti-corruption  Financial assistance  Tariffs agricultural goods  Competition policy  Health  Customs administration  Environmental laws  Human Rights  Export taxes  IPR  Illegal immigration  SPS measures  Investment measures  Illicit drugs  State trading enterprises  Labour market regulation  Industrial cooperation  TBT measures  Movement of capital  Information society  Countervailing measures  Consumer protection  Mining  Anti-dumping  Data protection  Money laundering  State aid  Approximation of legislation  Nuclear safety  Public procurement  Agriculture  Political dialogue  TRIMS measures  Audiovisual  Public administration  GATS  Civil protection  Regional cooperation  TRIPS  Innovation policies  Research and technology  Cultural cooperation  SMEs  Economic policy dialogue  Social Matters  Education and training  Statistics  Energy  Taxation  Terrorism  Visa and asylum CORE (18) The Database: 279 Agreements (http://data.worldbank.org/data-catalog/deep-trade-agreements)

"WTO plus" "WTO extra" areas covered by the WTO areas beyond the WTO  Tariffs industrial goods  Anti-corruption  Financial assistance  Tariffs agricultural goods  Competition policy  Health  Customs administration  Environmental laws  Human Rights  Export taxes  IPR  Illegal immigration  SPS measures  Investment measures  Illicit drugs  State trading enterprises  Labour market regulation  Industrial cooperation  TBT measures  Movement of capital  Information society  Countervailing measures  Consumer protection  Mining  Anti-dumping  Data protection  Money laundering  State aid  Approximation of legislation  Nuclear safety  Public procurement  Agriculture  Political dialogue  TRIMS measures  Audiovisual  Public administration  GATS  Civil protection  Regional cooperation  TRIPS  Innovation policies  Research and technology  Cultural cooperation  SMEs  Economic policy dialogue  Social Matters  Education and training  Statistics  Energy  Taxation  Terrorism  Visa and asylum CORE (18) Preferential (6) The Database: 279 Agreements (http://data.worldbank.org/data-catalog/deep-trade-agreements)

"WTO plus" "WTO extra" areas covered by the WTO areas beyond the WTO  Tariffs industrial goods  Anti-corruption  Financial assistance  Tariffs agricultural goods  Competition policy  Health  Customs administration  Environmental laws  Human Rights  Export taxes  IPR  Illegal immigration  SPS measures  Investment measures  Illicit drugs  State trading enterprises  Labour market regulation  Industrial cooperation  TBT measures  Movement of capital  Information society  Countervailing measures  Consumer protection  Mining  Anti-dumping  Data protection  Money laundering  State aid  Approximation of legislation  Nuclear safety  Public procurement  Agriculture  Political dialogue  TRIMS measures  Audiovisual  Public administration  GATS  Civil protection  Regional cooperation  TRIPS  Innovation policies  Research and technology  Cultural cooperation  SMEs  Economic policy dialogue  Social Matters  Education and training  Statistics  Energy  Taxation  Terrorism  Visa and asylum CORE (18) Preferential (6) MFN (12) Coding of each provision

Provision

1st COVERAGE 0 Not covered 1 Covered

2nd LEGAL Imprecise or not Legally ENFORCEABILITY 0 legally enforceable enforceable language language

Dispute settlement Dispute settlement 1 not available 2 available

Deep trade agreements Coding of each provision

Provision

1st COVERAGE 0 Not covered 1 Covered

2nd LEGAL Imprecise or not Legally ENFORCEABILITY 0 legally enforceable enforceable language language

Dispute settlement Dispute settlement 1 not available 2 available

Deep trade agreements Legally Enforceable Language

Example of “The parties shall allow the free movement of capital ...” a legally “Neither party may expropriate or nationalise a covered enforceable investment ...” provision “By the end of (exact date) a party shall accede to the following international conventions: ...” “Each party shall not fail effectively to enforce labour (environmental) laws ...”

Example of “The parties shall cooperate ...” a provision “Dialogue shall be established ...” that leads to conclude “Special attention shall be paid to ...” that an area “Measures necessary for development and promotion of ...” is not “Parties may conclude ...” legally enforceable

DeepSource: trade agreements Horn, Mavroidis and Sapir (2010) WTO plus areas tend to be legally enforceable

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Deep trade agreements …so are “core” WTO extra areas

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Deep trade agreements Viner revisited Trade creation and trade diversion

• What we do • Estimate the impact of “Deep” trade agreements on • member countries • non-members • relative preference

• What we find • Deep trade agreements • increase trade between members • do not hurt trade for non-member countries • mitigate the negative effect of tariff preferences

Deep trade agreements Prima facie evidence: Trade Creation

Distribution of over levels of depth

Deep trade agreements Empirics: Trade Creation

푋푖푗,푡 = 푒푥푝 훽1퐷푒푝푡ℎ푖푗,푡 + 훽2 ln 1 + 푇푇푅퐼푖푗,푡 + 휗푖푗 + 휃푗,푡 + 훺푖,푡 + 휉푖푗,푡

σ 푃푟표푣푙 where 퐷푒푝푡ℎ = 푙∈퐴퐿퐿(퐿퐸,푆퐿퐸,퐶푂푅퐸) 푖푗,푡 푖푗,푡 푚푎푥 푇표푡푎푙퐷푒푝푡ℎ

σℎ푠 푋푖푗,95−97 ℎ푠 휀푗,ℎ푠푇푖푗,푡 ℎ푠 푇푇푅퐼푖푗,푡 = σℎ푠 푋푖푗,95−97 ℎ푠 휀푗,ℎ푠

• X indicates from country i to country j (95 countries) in year t (2002-2014)

• Bilateral Trade Costs • Depth • TTRI, the Tariff Trade Restrictiveness Index (Kee et al. (2009)) • Bilateral fixed effects

Deep trade agreements Results: Trade Creation

Table 1. PPML Regression: Trade Creation Depth (1) (2) (3) (4) (5) (6) (7) (8) VARIABLES Trade Trade Trade Trade Trade Trade Trade Trade

Depth All 0.099** 0.267*** 0.259*** (0.042) (0.099) (0.098) Depth LE 0.115** 0.245*** 0.236*** (0.047) (0.090) (0.088) Depth SLE 0.118** (0.053) Depth Core 0.053* (0.030) PTA -0.098 -0.072 -0.102* -0.076 (0.062) (0.051) (0.061) (0.050) ln(1+TTRI) -0.208 -0.205 (0.562) (0.562)

Observations 110,739 110,739 110,739 110,739 110,739 110,739 94,057 94,057 Exp.-Year yes yes yes yes yes yes yes yes Imp.-Year yes yes yes yes yes yes yes yes Exp.-Imp. yes yes yes yes yes yes yes yes Period 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 Note: Robust standard errors, clustered at the country-pair level, are in parentheses. *** p<0.01, ** p<0.05, * p<0.1 Extra: log of depth 3 year intervals Deep trade agreements internal flows Dynamic effects of Deep PTAs (95% C.I.)

23 Deep trade agreements Empirics: Trade Diversion and Depth

훽1퐷푒푝푡ℎ푖푗,푡 + 훽2푂푡ℎ푒푟푠 퐷푒푝푡ℎ푖푗,푡 + 훽3푅푃푀푖푗,푡 푋푖푗,푡 = 푒푥푝 + 휉푖푗,푡 +훽4ln(1 + 푇푇푅퐼푖푗,푡) + 휗푖푗 + 휃푗,푡 + 훺푖,푡

σ푣 푋푣푗 95−97 퐷푒푝푡ℎ푣푗 푂푡ℎ푒푟푠 퐷푒푝푡ℎ푖푗푡 = , 푣 ≠ 𝑖 σ푣 푋푣푗 95−97

σℎ푠 푋푖푗,95−97 ℎ푠휀푗,ℎ푠(푇푖푗,푡 ℎ푠 − 푇푤푗,푡 ℎ푠) 푅푃푀푖푗,푡 = 푤𝑖푡ℎ σℎ푠 푥푖푗,95−97 ℎ푠휀푗,ℎ푠

σ푣 푥푣푗,95−97 ℎ푠푇푣푗,95−97 ℎ푠 푇푤푗,푡 ℎ푠 = , 푣 ≠ 𝑖 σ푣 푥푣푗,95−97 ℎ푠

Deep trade agreements Results: Trade Diversion and Depth

Table 2. PPML Regression: Trade Diversion Depth (1) (2) (3) (4) (5) (6) VARIABLES Trade Trade Trade Trade Trade Trade

Depth 0.165*** 0.147*** 0.101** 0.161*** 0.140** (0.061) (0.056) (0.047) (0.062) (0.057) Others Depth 0.854 0.853 (0.545) (0.550) Others MFN 1.814* 1.845** (0.951) (0.941) Others PREF -1.335 -1.353 (0.967) (0.963) ln(1+TTRI) -0.234 -0.236 -0.126 -0.083 (0.696) (0.695) (0.694) (0.674) RPM 0.042 0.097 -0.163 -0.414 (0.891) (0.894) (0.904) (0.852) N 100,157 100,157 94,057 94,057 94,057 94,057 Exp.-Year FE yes yes yes yes yes yes Imp.-Year FE yes yes yes yes yes yes Exp.-Imp. FE yes yes yes yes yes yes Period 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 Note: Robust standard errors, clustered at the country-pair level, are in parentheses. *** p<0.01, ** p<0.05, * p<0.1

Deep trade agreements Empirics: Trade Diversion Revisited

훽1퐷푒푝푡ℎ푖푗,푡 + 훽2푅푃푀푖푗,푡 + 훽3 푅푃푀푖푗,푡 ∗ 푀푎푥퐷푒푝푡ℎ푗푡 푋푖푗,푡 = 푒푥푝 + 휉푖푗,푡 +훽4ln(1 + 푇푇푅퐼푖푗,푡) + 휗푖푗 + 휃푗,푡 + 훺푖,푡

• We interact the RPM with two measures of depth of trade partners’ agreements: • 푂푡ℎ푒푟푠 퐷푒푝푡ℎ_푖푗,푡 • 푀푎푥퐷푒푝푡ℎ_푗푡

Deep trade agreements Results: Trade Diversion Revisited

Table 3. PPML Regression: Trade Diversion Revisited Depth (1) (2) (3) (4) (5) (6) VARIABLES Trade Trade Trade Trade Trade Trade

Depth 0.114** 0.114** 0.113** 0.174*** 0.172*** 0.170*** (0.047) (0.046) (0.046) (0.061) (0.061) (0.061) ln(1+TTRI) -0.196 -0.188 -0.174 -0.084 -0.080 -0.066 (0.697) (0.693) (0.689) (0.696) (0.692) (0.689) RPM -1.334 -3.330* -2.992* -1.632 -3.493* -3.156* (1.475) (1.934) (1.766) (1.487) (1.962) (1.793) (RPM * Max Depth Imp.) 2.680* 2.737* (1.599) (1.598) (RPM * Max Depth Core Imp.) 4.095*** 3.975** (1.590) (1.609) (RPM * Max PREF Imp.) -0.444 -0.483 (2.045) (2.074) (RPM * Max MFN Imp.) 4.235* 4.158* (2.485) (2.505) Others Depth 0.855 0.832 0.833 (0.550) (0.549) (0.549)

N 94,057 94,057 94,057 94,057 94,057 94,057 Exp.-Year FE yes yes yes yes yes yes Imp.-Year FE yes yes yes yes yes yes Exp.-Imp. FE yes yes yes yes yes yes Period 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 Note: Robust standard errors, clustered at the country-pair level, are in parentheses. *** p<0.01, ** p<0.05, * p<0.1

Deep trade agreements Figure c2 & c3 Application: Undoing US PTAs Depth of US trade agreements

Deep trade agreements Counterfactual Partial Equilibrium Analysis Steps

1. Estimates the impact of depth on trade flows

2. Predict bilateral trade flows for different scenarios a) No NAFTA b) No TPP c) TPP without the US d) No agreement

3. Calculate the change in total exports

4. Use elasticity of income to trade estimates from the literature to calculate the welfare impact

Deep trade agreements Undoing US Trade Agreements

Impact on U.S. trade and welfare Trade and welfare change (U.S. trade partners) Total Trade Change Welfare Total Trade Change Welfare (% Change) (% Change) Scenario Country (% Change) (% Change) (1) (2) (1) (2) (1) (2) (1) (2) No Agreements -4.31 -10.76 -2.16 -5.38 No NAFTA Canada -7.19 -17.93 -3.60 -8.96 No NAFTA -3.16 -7.87 -1.58 -3.93 Mexico -7.44 -18.55 -3.72 -9.27 No TPP -2.32 -5.90 -1.16 -2.95 No US in TPP Australia -0.21 -0.54 -0.10 -0.27 Note: (1) Beta = .19, gravity w/out internal flows; (2) Beta = .52 w/ Canada -2.89 -7.55 -1.45 -3.77 internal flows. Chile -0.53 -1.37 -0.26 -0.68 Japan -2.56 -6.20 -1.28 -3.10 Malaysia -1.11 -2.69 -0.55 -1.34 Mexico -2.94 -7.66 -1.47 -3.83 New Zealand -1.29 -3.11 -0.64 -1.56 Peru -0.64 -1.67 -0.32 -0.84 Singapore -0.36 -0.91 -0.18 -0.46 Vietnam -2.58 -6.24 -1.29 -3.12 No TPP Australia -2.77 -6.81 -1.38 -3.40 Canada -3.32 -8.60 -1.66 -4.30 Chile -1.58 -4.07 -0.79 -2.03 Japan -3.32 -8.09 -1.66 -4.05 Malaysia -3.83 -9.40 -1.92 -4.70 Mexico -3.17 -8.26 -1.59 -4.13 New Zealand -4.27 -10.47 -2.13 -5.23 Peru -1.63 -4.19 -0.82 -2.09 Singapore -2.71 -6.70 -1.36 -3.35 Vietnam -3.89 -9.51 -1.95 -4.75 Note: (1) Beta = .19, gravity w/out internal flows; (2) Beta = .52 w/ internal flows.

Deep trade agreements Concluding Remarks

• We document the deepening of PTAs • New database covering 279 PTAs signed by 189 countries (all PTAs notified to the WTO and in force in 2015)

• We revisit the question of trade creation / diversion for deep PTAs • Deep agreements have been successful in boosting trade between members • While we find evidence of tariff diversion, there is no evidence that deep PTAs lead to trade diversion: • The inclusion of deep MFN provisions increases trade with non-members and reduces the negative impact of relative tariff preferences

• Finally, we study the impact of undoing US PTAs • Undoing NAFTA will have the largest impact on US trade • Canada, Mexico and other Central American countries most affected by the undoing of US PTAs • Malaysia and Vietnam lose the most by a TPP failure

• Next steps: • Data capture “horizontal” depth, future work and data needed to assess the impact of “vertical” depth (i.e. depth of commitments in each policy area)

Deep trade agreements Extra slides

Deep trade agreements ln(1+Depth)

Table 1b. PPML Regression: Trade Creation ln(1+Depth) (1) (2) (3) (4) (5) (6) (7) (8) VARIABLES Trade Trade Trade Trade Trade Trade

Depth All 0.123** 0.408*** 0.394*** (0.056) (0.155) (0.152) Depth 0.140** 0.357** 0.341** (0.062) (0.141) (0.137) Depth SLE 0.144** (0.070) Depth Core 0.071* (0.043) PTA -0.127* -0.091 -0.129* -0.093 (0.072) (0.060) (0.071) (0.058) ln(1+TTRI) -0.207 -0.205 (0.562) (0.562) N 110,739 110,739 110,739 110,739 110,739 110,739 94,057 94,057 Exp.-Year FE yes yes yes yes yes yes yes yes Imp.-Year FE yes yes yes yes yes yes yes yes Exp.-Imp. FE yes yes yes yes yes yes yes yes Period 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 Note: Robust standard errors, clustered at the country-pair level, are in parentheses. *** p<0.01, ** p<0.05, * p<0.1

back

Deep trade agreements 3 Year Intervals (Trefler, 2004; Cheng and Wall, 2005)

Table 1c. PPML Regression: Trade Creation data every 3 years Depth (1) (2) (3) (4) (5) (6) (7) (8) VARIABLES Trade Trade Trade Trade Trade Trade Trade Trade

Depth All 0.098** 0.293** 0.289** (0.050) (0.136) (0.132) Depth 0.114** 0.268** 0.264** (0.053) (0.120) (0.115) Depth SLE 0.117* (0.060) Depth Core 0.058 (0.037) PTA -0.116 -0.087 -0.125 -0.096 (0.090) (0.075) (0.086) (0.071) ln(1+TTRI) -0.286 -0.284 (0.609) (0.609) N 110,739 110,739 110,739 110,739 110,739 110,739 94,057 94,057 Exp.-Year FE yes yes yes yes yes yes yes yes Imp.-Year FE yes yes yes yes yes yes yes yes Exp.-Imp. FE yes yes yes yes yes yes yes yes Period 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 3yrs 3yrs 3yrs 3yrs 3yrs 3yrs 3yrs 3yrs Note: Robust standard errors, clustered at the country-pair level, are in parentheses. *** p<0.01, ** p<0.05, * p<0.1 back

Deep trade agreements Internal Flows

Table 1d. PPML Regression: Trade Creation Internal Flows Depth (1) (2) (3) (4) (5) (6) (7) (8) VARIABLES Trade Trade Trade Trade Trade Trade Trade Trade

Depth All 0.722*** 0.811*** 0.850*** (0.041) (0.127) (0.124) Depth 0.763*** 0.689*** 0.715*** (0.043) (0.102) (0.100) Depth SLE 0.849*** (0.045) Depth Core 0.492*** (0.033) PTA -0.059 0.049 -0.127 -0.009 (0.079) (0.060) (0.078) (0.059) ln(1+TTRI) -2.139*** -2.127*** (0.552) (0.552) N 116,134 116,134 116,134 116,134 116,134 116,134 97,825 97,825 Exp.-Year FE yes yes yes yes yes yes yes yes Imp.-Year FE yes yes yes yes yes yes yes yes Exp.-Imp. FE yes yes yes yes yes yes yes yes Period 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 2002-2014 Note: Robust standard errors, clustered at the country-pair level, are in parentheses. *** p<0.01, ** p<0.05, * p<0.1 back

Deep trade agreements Trade Diversion Revisited

Marginal Effect of Tariff Preferences (90% C.I.)

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0 .2 .4 .6 .8 1 0 .2 .4 .6 .8 1 Depth Core MFN (with Pref=mean) back

Deep trade agreements Description Provisions 1/3

FTA Industrial Tariff liberalization on industrial goods; elimination of non-tariff measures FTA Agriculture Tariff liberalization on agriculture goods; elimination of non-tariff measures Customs Provision of information; publication on the Internet of new laws and ; training Export Taxes Elimination of export taxes Affirmation of rights and obligations under the WTO Agreement on SPS; harmonization SPS of SPS measures Affirmation of rights and obligations under WTO Agreement on TBT; provision of TBT information; harmonization of regulations; mutual recognition agreements Establishment or maintenance of an independent competition authority; nondiscrimination regarding production and marketing condition; provision of STE information; affirmation of Art XVII GATT provision Retention of Antidumping rights and obligations under the WTO Agreement (Art. VI AD GATT). Retention of Countervailing measures rights and obligations under the WTO Agreement CVM (Art VI GATT) Assessment of anticompetitive behaviour; annual reporting on the value and distribution State Aid of state aid given; provision of information Progressive liberalisation; national treatment and/or non-discrimination principle; publication of laws and regulations on the Internet; specification of public procurement Public Procurement regime TRIMs Provisions concerning requirements for local content and export performance of FDI GATS Liberalisation of trade in services Harmonisation of standards; enforcement; national treatment, most-favoured nation TRIPs treatment

Deep trade agreements Description Provisions 2/3

Anti-Corruption Regulations concerning criminal offence measures in matters affecting international trade and investment Maintenance of measures to proscribe anticompetitive business conduct; harmonisation of competition laws; establishment Competition Policy or maintenance of an independent competition authority Development of environmental standards; enforcement of national environmental laws; establishment of sanctions for Environmental Laws violation of environmental laws; pubblications of laws and regulation IPR Accession to international treaties not referenced in the TRIPs Agreement Information exchange; Development of legal frameworks; Harmonisation and simplification of procedures; National Investment treatment; establishment of mechanism for the settlement of disputes Regulation of the national labour market; affirmation of International Labour Organization (ILO) commitments; Labour Market Regulation enforcement Movement of Capital Liberalisation of capital movement; prohibition of new restrictions Consumer Protection Harmonisation of consumer protection laws; exchange of information and experts; training Exchange of information and experts; joint Data Protection projects Agriculture Technical assistance to conduct modernisation projects; exchange of information Approximation of Application of EC legislation in national Legislation legislation Promotion of the industry; encouragement of Audio Visual co-production Civil Protection Implementation of harmonised rules Innovation Policies Participation in framework programmes; promotion of technology transfers Promotion of joint initiatives and local Cultural Cooperation culture

Economic Policy Dialogue Exchange of ideas and opinions; joint studies Measures to improve the general level of Education and Training education Exchange of information; technology Energy transfer; joint studies FinancialDeep Assistance trade agreementsSet of rules guiding the granting and administration of financial assistance Description Provisions 3/3

Health Monitoring of diseases; development of health information systems; exchange of information Human Rights Respect for human rights Illegal Immigration Conclusion of re-admission agreements; prevention and control of illegal immigration Treatment and rehabilitation of drug addicts; joint projects on prevention of consumption; reduction of Illicit Drugs drug supply; information exchange Industrial Cooperation Assistance in conducting modernisation projects; facilitation and access to credit to finance Information Society Exchange of information; dissemination of new technologies; training Mining Exchange of information and experience; development of joint initiatives Money Laundering Harmonisation of standards; technical and administrative assistance Nuclear Safety Development of laws and regulations; supervision of the transportation of radioactive materials Convergence of the parties’ positions Political Dialogue on international issues Public Administration Technical assistance; exchange of information; joint projects; Training Regional Cooperation Promotion of regional cooperation; technical assistance programmes Research and Technology Joint research projects; exchange of researchers; development of public-private partnership Technical assistance; facilitation of SME the access to finance Social Matters Coordination of social security systems; non-discrimination regarding working conditions Statistics Harmonisation and/or development of statistical methods; training Assistance in conducting fiscal Taxation system reforms Terrorism Exchange of information and experience; joint research and studies Exchange of information; drafting Visa and Asylum legislation; training Deep trade agreements