Bilateral servicification in global value chains and deep trade agreements

International trade has been transformed by participation in global value chains (GVCs), where services linkages play a critical role. Recent studies examine the impact of deep agreements on GVC-related trade, but none them focusses services. Using gravity framework, this paper investigates with substantial provisions bilateral foreign added embodied manufacturing exports. We also consider depth these and explore asymmetric effects depending partners’ income level, EU membership direction flows. The analysis reveals that boost from partner countries, larger impacts for deeper agreements. Moreover, there are heterogeneous effects, which particularly significant North–North flows countries. Therefore, those seem to allow exploit its comparative advantage and, consequently, strengthen intra-EU GVCs non-EU