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  • https://doi.org/10.1080/01402382.2024.2425549Copy DOI Icon

EU trade agreements and external differentiation: a large language model approach

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Abstract

The EU’s trade agreements with third countries exhibit varying degrees of alignment with intra-EU rules. What factors explain this external differentiation? This article answers this question by relying on a large language model to measure the alignment of 62 EU trade agreements with intra-EU rules at the level of individual topics, such as trade in goods, intellectual property rights, or sustainable development. The results indicate that this alignment is higher for third countries (1) with large trade flows with the EU; (2) with an EU membership perspective; and (3) with a medium level of regulatory capacity. These associations are particularly pronounced for provisions tackling behind-the-border trade barriers. These findings contribute to the literature on external differentiation and advance our understanding of EU trade policy and preferential trade agreements.

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