Effect of Pakistan GCC Bilateral Trade Agreement on Pakistani Stock Market: An Event Study Methodology

The goal of this investigation is to establish a connection between the attributes of listed companies and the effects of the Pakistan-Malaysia Bilateral Trade Agreement (BTA) on Pakistan’s stock markets. For that purpose, this research is to look at how the Pakistan Stock Exchange (PSX) was affected by the Bilateral Trade Agreement between Pakistan and Malaysia. The abnormal returns have been computed before and after the announcement using an event study methodology. The results demonstrate that the announcement of the Pakistan-Malaysia (BTA) elicited an immediate response from chosen sectors of Pakistan, with mixed responses, negative as well as positive. Given that the textile industry is one of Pakistan’s top export industries, its response was encouraging. The study concludes that the PSX was vulnerable to this event as well as that this paper has important ramifications for investors and trade policy makers.

This article explores the policy foundations behind regional and bilateral trade agreements and their application in practice. Critically examining the arguments in support of them, it highlights the virtues and deficiencies of each. It concludes by arguing that international standards should be developed to guide the development of bilateral trade agreements in the future. The proliferation of bilateral trade agreements has helped to fill a gap in a multilateral trade process that is impeded by the impasse of negotiations in the World Trade Organization (WTO). At the same time, the development of bilateral trade agreements arguably has discouraged some States from engaging in multilateral negotiations. The result is a new genre of trade relations in which bilateral and regional mechanisms are increasingly adopted in substitution for multilateral trade processes. While, bilateral trade agreements diverge significantly in their form and substance, they are having an important, albeit disparate impact upon multilateral trade. This article examines different arguments for asserting that bilateral trade agreements have advanced multilateral trade relations. It poses a variety of questions. To what extent is the development of bilateral trade agreements founded on sound trade principles? Have bilateral trade agreements added value to or detracted from the perceived needs of multilateral trade? Are States subject to suitable guidelines in negotiating bilateral agreements? To what extent are States subject to obligations to redress the practices of recalcitrant States, such as by resort to trade boycotts and other sanctions, in responding to violations of the law governing international trade? Overriding all these questions is a potential tension between policies over the liberalization of trade. One policy is grounded in principles of laissez faire: that States should be comparatively unrestrained in concluding bilateral trade agreements in the interests of promoting the unchecked exchange of goods and services. Another policy holds that States are bound to respect their bilateral agreements and that violating them ought to lead to the censuring of offending States. In support of this latter policy is the claim that States that consent to bilateral agreements both surrender their sovereignty and territoriality bilaterally and subject themselves to international standards of compliance not limited to those embodied in the GATT and its WTO successor. The first two sections of this article evaluate the reasoning behind the liberalization of trade and the assumptions in favor of bilateral trade agreements. The third section critically evaluates different arguments in favor of negotiating and concluding bilateral trade agreements. The fourth section proposes legal principles and standards to guide the application of bilateral free-trade agreements in the twenty-first century.

The incredible success of the World Trade Organization (WTO) and bilateral Free Trade Agreements in reducing tariffs has shifted the battle for market access in the twenty-first century. Countries that seek to protect their markets now must resort to non-tariff barriers (NTBs). Unfortunately for exporters, NTBs are elusive and it is difficult to prove the illegality of a measure within the confines of the standard dispute settlement system. This article draws upon lessons from the U.S.-Korea FTA (KORUS) and the current political climate and concludes that the United States must develop a new framework to address NTBs to trade within bilateral trade agreements. It is proposed that an NTB Resolution Mechanism be included within U.S. bilateral trade agreements. The NTB Resolution Mechanism should build on proposals at the WTO that require that NTBs be examined within 60 days and focus on the trade restrictiveness—and not the legality—of the measure. However, the Congressional Proposal to Open Korea’s Automotive Market makes it clear that the NTB Resolution Mechanism must have teeth to assure exporters that trade barriers will be addressed. One option is to include the Korea trade agreement’s “snap-back” provision within the NTB Resolution Mechanism. Next, the NTB Resolution Mechanism should allow for a private right of action. Exporters are concerned that the U.S. government may not take up their cause over discrete NTBs in otherwise complicated bilateral relationships. A private right of action would guarantee that all companies with market access problems are heard. Finally, a continuous monitoring platform should be created that documents NTBs. The platform would exist within U.S. bilateral trade agreements and would be built upon the principles of current structures that document trading difficulties. The platform would provide a formal channel to raise NTBs and ratchet up pressure to remove the barriers. The platform would also provide a channel to build evidence prior to engaging the NTB Resolution Mechanism. Market access is the issue that drives corporate support for liberalization of international trade. The United States must build structures within its trade agreements that can adequately address market access inhibitors like NTBs. Without these structures, agreements like KORUS will not be ratified by a Congress that is increasingly skeptical of liberalized trade, and the United States will fall further behind in global trade agreements.

This study examines the impact of monetary policy announcement on stock prices listed on Karachi stock exchange for the period 1998-2012. The Monetary policy announcements are extracted from the report published by the State bank of Pakistan from 1998 to 2012 and KSE-100 index prices. Forty-two monetary policies were announced during this period of study. This study used an event study consists of an event window of 21 days and a simple t-test has been applied to test the statistical significance of the returns generated. We use the market model to estimate the abnormal returns (AR) and cumulative average abnormal returns (CAAR) around the monetary policy announcement dates for these securities. The results reveal that policy announcements do generate AR, CAAR and prove to be significant. The finding of research indicates that the Efficient market hypothesis does not hold for the Pakistani stock market and shows market in-efficiency.

Resolution of Non-Tariff Barriers in Bilateral Trade Agreements: Lessons from the U.S. - Korea Free Trade Agreement and a Model for Market Access in the Twenty-First Century

The textile and apparel manufacturing sector has been an important and dynamic component of the economic growth achieved in recent years by newly industrialized countries (NICs) and others aspiring to that status. Part of the dynamism-which is not entirely welcome to the industry-is provided by complex market regulation policies formulated and administered not only by international conventions and agencies but also by importing nations. Of the latter, few have more vigorously restricted textile and apparel imports than the United States, and yet a substantial share of the U.S. market continues to be made up of products imported from Third World and NIC sources. Malaysia is one such source, and an examination of recent developments in the Malaysian textile and apparel industry reveals resourceful and persistent participation in this trade. The Malaysian industry is small when compared to such major producers in Asia as China, Hong Kong, Japan, Korea, and Taiwan. Yet textiles has been targeted as a growth industry, and projections call for steady growth and recognition as a significant industrial group by 1990. More specifically, the Malaysian Industrial Master Plan urges improved product quality, maintenance of reasonable price levels, and expanded exportoriented marketing. Since most of the growth has been attributable to production for export, Malaysian manufacturers and officials are well aware of the economic implications of international trade policies and bilateral trade agreements. The trend toward protectionism in the United States, one of the five countries with which Malaysia has bilateral textile trade agreements, has been especially worrisome because nearly half of Malay-

Purpose The European Commission suggested in 2014 a differential approach to negotiating intellectual property rights (IPR) clauses in bilateral trade agreements, whereby least developed and poorer developing states were to be offered less burdensome obligations in the sphere of IPR. This made the policy of European Union (EU) with regard to IPR standards in third countries open to fragmentation, which could lead to increased transaction costs. The purpose of the study is to advance research on the following questions. How extensive has such fragmentation been in practice? Has such fragmentation followed any discernible pattern? and Have the impasse in the World Trade Organization (WTO) Appellate Body and the COVID-19 affected in any significant way the extent of such fragmentation? Design/methodology/approach The study includes an overview of the key developments in WTO negotiations with regard to the IPR after the Doha Ministerial Conference, and the explanation of the methodology of sampling, whereby eight clauses on IPR in three bilateral agreements are selected for analysis. The method of comparative analysis is used to establish the trends in EU bilateral trade agreements before and after COVID-19 with regard to IPR. Findings The study concludes that neither COVID-19 nor WTO Appellate Body stalemate changed dramatically the EU policy with regard to IPR standards in bilateral trade agreements. However, the fragmentation of the IPR clauses in trade agreements remains an issue, which may negatively affect the efficiency of the relevant commercial and investment activities. Originality/value Even though the IPR clauses of EU trade agreements with third states have been well researched, there is insufficient research of the effects of the COVID-19 and WTO Appellate Body stalemate on the treaty practice of the EU in the sphere of IPR on two aspects: treatment of developing countries and fragmentation of the international IPR standards. The study is, thus, offering a novel view of an important aspect of the EU external economic policy.

In this article the possible repercussions of the new bilateral trade agreement between Morocco and the European Union concerning the fruit and vegetable sector have been examined. Through appropriate mathematical indices, such as the “revealed comparative advantage” (RCA) approach pioneered by Balassa, the competitive position of Morocco over its trading partners in the EU and especially over the Mediterranean Member States has been evaluated. The aim is to discover fea- tures of trade of Morocco and the EU in the fruit and vegetable sector, and changes during the period 2000 - 2010. In particular, the effects of the new bilateral trade agreement on EU countries such as Italy, Spain and France, i.e., the traditional producers of these goods, have been examined. RCA of Morocco over the EU and RCA of the EU over Morocco have been calculated by conducting research using UN Comtrade sources. Moreover, through the “revealed trade advantage” (RTA) introduced by Vollrath, the global competitiveness of the fruit and vegetables sector in both Morocco and the EU have been evaluated.Finally, the degree of intra-industry trade between Morocco and the major European producers of fruit and vegetables has been calculated. The results highlight the strong dominance of Morocco, and point to the possibility that the new bilateral trade agreement may cause an increase in economic instability in many European areas struggling against Moroccan competition in certain agricultural sectors. In countering this situation, questions concerning agrifood safety, agri-environmental protection and other aspects could become relevant in the near future. The importance of these questions is that they may point to the comparatively low levels of restrictions often faced by the Moroccan producers as the real cause of their actual competitive advantage in some strategic European agri-food sectors. Despite the limitations of RCA indices obtained in this study, they are expected to offer further insight into the competitiveness of the Moroccan fruit and vegetables sector and its implications for trade with the EU in the near future.

Potential EU -Mercosur Free Trade Agreement: Impact Assessment : Volume 1: Main results

ABSTRACTBoth bilateral and plurilateral trade agreements have grown in number over the past three decades, but their potential impact on trade may be different. This paper sheds light on the ex post (partial) effect of bilateral versus plurilateral trade agreements using the most recent econometric developments for the gravity equation on a dataset that covers 211 countries and territories over the period 1948–2013. Our results show that plurilateral trade agreements have significantly increased trade among trading partners, while this has not been the case for bilateral trade agreements.

Abstract: This research volume examines India’s evolving role as a strategic actor in the global trading system, focusing on how it employs bilateral, regional, and selective multilateral trade agreements to navigate a fragmented, multipolar economic order. Moving beyond traditional economic assessments, the book adopts a multidisciplinary framework integrating political economy, international trade law, development studies, and global governance to analyze the structural transformation of India’s trade diplomacy. The study begins by tracing India’s shift from postcolonial protectionism to liberalization and strategic autonomy. It then analyzes India's engagement in bilateral and regional trade agreements, and its role in multilateral forums such as the WTO, G20, and BRICS. Sectoral case studies in pharmaceuticals, renewable energy, and digital trade provide empirical insights into India's normative influence over global value chains and regulatory standards. Methodologically, the work utilizes treaty analysis, institutional review, and sectoral impact assessments to demonstrate how India balances domestic development imperatives with strategic global engagement. Key findings suggest that India is repositioning itself not merely as a market participant but as a rule-shaper advocating for inclusive, development-sensitive trade norms. The book concludes with a forward-looking strategic outlook, emphasizing regulatory harmonization, climate-linked trade, and South–South cooperation. It contributes a timely perspective on how India’s trade strategy could recalibrate the architecture of global governance in the 21st century. Keywords India’s trade policy, global governance, bilateral trade agreements, regional integration, WTO, BRICS, G20, digital trade, pharmaceutical diplomacy, energy security, strategic autonomy, trade and development, South–South cooperation, global supply chains, multipolarity, trade diplomacy, regulatory frameworks, post-Western world order, economic statecraft, inclusive globalization

South–South cooperation has been on the rise in recent years. One of the latest examples is the China–Pakistan Economic Corridor (CPEC) proposed by the Chinese and Pakistani governments in 2013. Using event study methodology, this article examines the impact of events and announcements associated with CPEC on the Pakistan Stock Exchange in Pakistan and the Shanghai Stock Exchange in China. The first key finding of this article is that the initial announcement associated with CPEC had stronger and positive short-term impact on the Pakistan Stock Exchange in comparison with the impact of subsequent CPEC events on the stock market. The second key finding is that the short-term impact of the CPEC initial announcement was stronger on the Pakistan Stock Exchange than on the Shanghai Stock Exchange, possibly due to the substantial difference in the size of the two economies. The empirical results of this article have important implications for investors, corporations and regulators to the Global South.

Purpose The integration of digital trade has changed the nature of international trade. Fintech-assisted international digital trade in goods and services reduces costs and increases trade diversity between economies. The aim of this paper is to examine the China–Pakistan bilateral trade agreement (BTA) Phase I and Phase II in the context of corporate tax and how financial technological revolution can facilitate the sustainable economic development of Pakistan. Design/methodology/approach The regression analysis along with review of previous empirical literature is used for this investigation. The data of financial statements are collected from Pakistan Stock Exchange. Findings The findings of the study reveals that corporate tax payments surge due to increase in exports to China in both the phases of BTA. Moreover, Pakistan is seriously adopting the digital taxation system for corporation, consequently, the tax revenue will be further enhanced, which lead to sustainable economic development of Pakistan. Originality/value To the best of my knowledge, this paper is unique in a sense that it will assist the regulators in making digital trade policies for innovation in sectors. Furthermore, it will support the corporate managers to establish the financial strategy in connection to the contemporary concept of fintech.

Can Bilateral Trade Agreements Help Induce Free Trade

There has been growing debate about whether bilateral trade agreements are damaging multilateral efforts to eliminate barriers to international trade. This paper develops a model in which trading blocs always charge optimal tariffs and make trade agreements based on strategic considerations. We ask a very simple question. Does the fact that trading blocs can form bilateral trade agreements make Free trade less likely to occur? The answer is that it depends on the size distribution of the trading blocs. If there is one large trading bloc along with some smaller ones then bilateral trade agreements allow the smaller trading blocs to coalesce and block the monopoly power of large trading blocs. In this case, bilateral trade agreements facilitate the attainment of free trade. Not allowing customs unions leads to more not less protection. If trading blocs are of roughly equivalent size then bilateral trade agreements allow groups of trading blocs to more effectively monopolize world trade in which case they may make free trade less likely. These results suggest that a policy that inhibits the formation of trading blocs may be harmful. We also compute the welfare effects of trade agreements to get some idea of how empirically important these issues are.