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ORIGINAL RESEARCH article

Front. Sustain. Food Syst.
Sec. Agricultural and Food Economics
Volume 8 - 2024 | doi: 10.3389/fsufs.2024.1523091
This article is part of the Research Topic Enhancing Food Security and Trade Resilience in Sustainable Agricultural Systems View all 8 articles

The Effects and Mechanisms of Deep Free Trade Agreements on Agricultural Global Value Chains

Provisionally accepted
Huasheng Zeng Huasheng Zeng *Shuyu Chen Shuyu Chen *Haoruo Zhang Haoruo Zhang *Jinhai Xu Jinhai Xu *
  • Yangzhou University, Yangzhou, China

The final, formatted version of the article will be published soon.

    Introduction: In the context of the growing global trend toward the deep integration of free trade agreements (FTAs), enhanced regional agricultural collaboration has significantly impacted the agricultural global value chains (AGVCs). Clarifying how FTA depth affects a country’s AGVC participation is crucial for promoting high-quality agricultural development and deepening international agricultural cooperation. Methods and Goals: This paper constructs and calculates indicators for FTA depth and the AGVC index, employing fixed effects models, PPML models, and other methods, aiming to empirically analyze how the depth of FTAs influences a country’s participation in AGVC and the mechanisms involved. Results: The findings indicate that an increase in FTA depth enhances a country's degree of participation and position within the AGVC. Both the ‘WTO+’ and ‘WTO-X’ provision depth indices exert a significant positive influence on increasing participation and position within the AGVC, with the ‘WTO-X’ provision depth index demonstrating a more pronounced effect than the ‘WTO+’ provision. Furthermore, the positive effects of increased FTA depth on the integration of developed countries into the AGVC are greater than those on developing countries. Additional analysis reveals that FTA depth promotes trade liberalization and investment facilitation, thereby enhancing countries' participation and position in the AGVC. Discussion: The findings of this paper provide reliable empirical evidence for understanding the influence of FTA depth on AGVC and offer valuable policy insights for countries actively pursuing deeper FTAs. Policy recommendations: To further advance the evolution of AGVC, it is recommended that countries actively promote the signing of deeper FTAs to accelerate trade liberalization and investment facilitation. At the same time, developed countries should strengthen agricultural technology research and development, assisting developing countries through technology transfer to jointly build a sustainable GVC; developing countries should enhance agricultural cooperation and improve their negotiating power in FTA discussions.

    Keywords: free trade agreements, agricultural global value chain, Trade liberalization, Investment facilitation, international trade

    Received: 05 Nov 2024; Accepted: 24 Dec 2024.

    Copyright: © 2024 Zeng, Chen, Zhang and Xu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence:
    Huasheng Zeng, Yangzhou University, Yangzhou, China
    Shuyu Chen, Yangzhou University, Yangzhou, China
    Haoruo Zhang, Yangzhou University, Yangzhou, China
    Jinhai Xu, Yangzhou University, Yangzhou, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.