How is an ECA negotiated?
ECA negotiations can be divided roughly into the following steps: individual studies, joint study, consultation, signing, legislature approval, and entrance into force. However, not all ECA negotiations follow this sequence of steps; for example, ECAs signed by the US with other countries skip the individual studies and the joint study.
Basically, in the initial stage, economies having the willingness to launch an ECA would conduct individual studies or a joint study regarding the economic impacts of said ECA, so as to assess potential benefits or possible impacts of the ECA once signed. If the study result indicates the presence of significant economic benefits, both sides will launch the negotiations on the ECA. Generally speaking, several rounds of negotiations are required before the text can be finalized for signing, submitted to the respective legislatures for approval, and implementation when the ECA enters into force upon legislative approval.