ABSTRACT
This chapter takes stock of recent advances in regionalism as seen through a Global Value Chain (GVC) lens. It reviews the nascent evidence on the role of Regional Trade Agreements (RTAs) in facilitating the creation and expansion of GVCs. The chapter highlights some of the most progressive elements of new generation RTAs that are consistent with the new dynamics of global value chains in driving modern trade growth. It offers final reflections on the blurred lines between cross-regionalism and multilateralism in the governance of GVCs. The link between new generation RTAs and the participation of countries in GVCs appears to be evident in the wave of regionalism in Asia, which has coincided with the integration of various countries (including China) into global production networks. Since trade and investment are closely intertwined in GVCs, bringing them together under one umbrella engenders greater consistency and clarity for investors, which translates into lower costs.
