ABSTRACT
The chapter begins with a discussion on elements of the research literature on the economic effects of Deep and comprehensive free trade agreements (DCFTA). It considers broader trends in the global economy and developments in the coverage and design of international trade agreements, illustrating that alternative approaches to deepening integration of product markets might be considered by European Neighbourhood Policy countries and the European Union. DCFTAs with the Eastern partnership countries became a focal point of contention with Russia, which sought, to convince Ukraine to become a member of the Eurasian Customs Union – an initiative that was expanded into the Eurasian Economic Union (EEU). In the case of Armenia, Russian pressure led the government to decide to join the EEU, so that the DCFTA that was negotiated as part of the Association Agreement in 2013 never entered into force. An important area from a growth perspective that is covered by DCFTAs is trade and investment in services.
