The Global Financial Crisis and Regional Trade Agreements

25 Pages Posted: 16 Oct 2019

See all articles by Clara Park

Clara Park

University of Colorado Boulder

Date Written: October 7, 2019


This article argues that the global financial crisis has weakened institutional support for financial liberalization in regional trade agreements and increased transaction costs in the financial services sector. Due to the lack of cooperation among international economic organizations, regional trade agreements, such as the TPP and TTIP, are at odds with international financial policies such as Basel III. This article analyzes the design of regional trade agreements and finds shortcomings — a proliferation of micro-prudential carve-outs, an absence of a macro-prudential perspective, and a fragmentary FTA dispute settlement. I argue that these shortcomings erode not only trade liberalization, but also international regulatory cooperation in financial services. This article brings together issues in international trade and finance that have been examined separately and calls for cooperation among international economic organizations.

Keywords: Trade in Financial Services, International Political Economy, Regional Trade Agreements, Financial Regulations, Global Financial Crisis

JEL Classification: F13, F21, F23, F53, F55, F62, F65

Suggested Citation

Park, Clara, The Global Financial Crisis and Regional Trade Agreements (October 7, 2019). Available at SSRN: or

Clara Park (Contact Author)

University of Colorado Boulder ( email )

Boulder, CO

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