The term “mega deal” has been widely used in relation to two large prospective trade deals between the United States and Europe — the Transatlantic Trade and Investment Partnership — and between Asia and the Pacific — the Trans-Pacific Partnership. This paper, authored by Chungding Li, Jing Wang and John Whalley, explores a possible description of mega deals by making an inventory of current deals in place, under discussion or negotiation, and deals yet to be considered. The paper also examines China’s situation regarding deals that may include or exclude the country by looking at descriptive analysis and summarized general equilibrium modelling calculations on the potential impact of these deals — these consistently show that the access benefits from mega deal negotiations may be essential for China’s security in market access. The authors conclude that China will be driven to engage in its own mega trade deals by the need to compete in the global trade system. China can influence the future development of the trading system by its stance toward mega deals, and mega deals would most likely shape the future of China’s economy.

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CIGI Papers present in-depth analysis and discussion on governance-related subjects. They include policy papers that present CIGI experts' positions or contributions to policy debates, and background papers that contain research findings, insights and data that contribute to the development of policy positions.
  • Chunding Li is a research fellow and deputy director of the international trade department at the Institute of World Economics and Politics, Chinese Academy of Social Sciences. His main research fields are international trade disputes, regional trade agreements, and policy modelling and simulation. 

  • Jing Wang is currently a post-doctoral associate in the Department of Economics at the University of Western Ontario. She holds a B.Sc. in applied mathematics from China’s Renmin University, an M.E. in software engineering from Renmin University and a Ph.D. from the Graduate School of Chinese Academy of Social Sciences.