**Figure O7: Substantive provisions and a breakdown of non-substantive provisions in PTAs, over time**

<!-- Start of picture text --> 42<br>35<br>27 27<br>22<br>19 20<br>16<br>15 14 13 13<br>12<br>10 10<br>8 8<br>6 6<br>4<br>Before 1995 1995-1999 2000-2004 2005-2009 2010-2017<br>Transparency Procedural requirements Enforcement mechanism Substantive<br>Coverage ratio refers to the share of provisions for a policy area contained in a given agreement relative to the maximum<br>number of provisions in that policy area. Years refer to entry into force date. European Union agreement and enlargements<br>When we break down the trade agreements by level of development of the signatories, we observe two<br>facts. First, the deepest PTAs are those involving developed economies, followed by PTAs between<br>developed and developing economies. PTAs between developing countries are the shallowest. Indeed,<br>there is a sizeable gap between average coverage ratios for the latter group of PTAs relative to the first<br>two (Figure O8). This could reflect a focus of negotiations on tariffs and traditional trade barriers, which<br>are still high for several low-income economies. Second, in terms of composition, PTAs between<br>developed countries and those between developed and developing economies include similar shares of<br>provisions establishing economic integration rights, supporting these rights and aiming to regulate<br>exporters (Figure O9). PTAs between developing countries are shallower across the board, with a stronger<br>gap in areas such as environment and labor that aim at improving social welfare.<br>Figure O8: Inclusion of substantive commitments in PTAs, by level of development<br>27.7<br>23.2<br>18.8 18.9 19.5<br>13.2 13.9 13.7<br>10.9<br>10.1<br>8.4 8.2 9.1<br>5.8<br>4.8<br>Before 1995 1995-1999 2000-2004 2005-2009 2010-2017<br>Developing - Developing Developing - Developed Developed - Developed<br>Average coverage by category (%)<br>Average coverage ratio (%)<br><!-- End of picture text --> _Note:_ Coverage ratio refers to the share of provisions for a policy area contained in a given agreement relative to the maximum number of provisions in that policy area. Years refer to entry into force date. European Union agreement and enlargements excluded.

When we break down the trade agreements by level of development of the signatories, we observe two facts. First, the deepest PTAs are those involving developed economies, followed by PTAs between developed and developing economies. PTAs between developing countries are the shallowest. Indeed, there is a sizeable gap between average coverage ratios for the latter group of PTAs relative to the first two (Figure O8). This could reflect a focus of negotiations on tariffs and traditional trade barriers, which are still high for several low-income economies. Second, in terms of composition, PTAs between developed countries and those between developed and developing economies include similar shares of provisions establishing economic integration rights, supporting these rights and aiming to regulate exporters (Figure O9). PTAs between developing countries are shallower across the board, with a stronger gap in areas such as environment and labor that aim at improving social welfare.

_Note:_ Coverage ratio refers to the share of provisions for a policy area contained in a given agreement relative to the maximum number of provisions in that policy area. Years refer to entry into force date. European Union agreement and enlargements excluded.

13