The Inclusion of Border Carbon Adjustments in Preferential Trade Agreements: Policy Implications

Abstract

Preferential trade agreements (PTAs) are growing in importance globally. In 1990 there were approximately 70 preferential trade agreements in place, by 2010 there were around 300. Free trade agreements make up around three quarters of the PTAs. According to the EU: Free Trade Agreements (FTAs), if approached with care, can build on WTO and other international rules by going further and faster in promoting openness and integration, by tackling issues which are not ready for multilateral discussion and by preparing the ground for the next level of multilateral liberalization.