THE POLITICAL-ECONOMY OF EC REGIONALISM

Many observers have noted a recent proliferation of regional trade agr eements primarily centred in or on Europe. The paper analyses the caus es and consequences of EC regionalism. It begins by examining the deve lopment and importance of the phenomenon. It finds that although the E C maintains preferential trade arrangements with virtually all countri es, preferential trade accounts for no more than 25% of total EC trade . The paper investigates the causes of EC regionalism, focusing on the determinants of both the demand by third countries and the supply by the EC. Lastly, it examines future options. (C) 1998 Elsevier Science B.V. All rights reserved.