Regional trading arrangements like RCEP and TPP are expected to support the emerging
international production network (IPN). It is claimed that there is a positive relationship
between production network and trade integration (Kimura et al, 20076; Ando and Kimura,
20057). However the relationship can work both ways. While deep trade agreements
can stimulate production network by facilitating trade among potential members of supply
chain, countries involved in international production fragmentation are willing to sign
deeper trade agreements so as to formalise their role as providers of intermediate goods
and services.