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Trade Agreements in the Americas: Regionalism Converging to Globalization


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  • Hester, Annette
  • Beaulieu, Eugene


This paper summarizes the evolution of regional trade agreements in the Americas and examines whether they are contributing to globalization or detracting from it. In theory, regional trade agreements may create incentives that deter countries from entering into multilateral negotiations. The paper draws on the political economy literature and takes a "dynamic time-path effect" perspective. The evolution of six regional trade agreements in Latin America are analyzed in detail: LAIA, Mercosur, NAFTA, Andean Community, Caricom, and CACM. This study concludes that regional trade agreements in the Americas have not discouraged the participatory countries' pursuit of multilateral negotiations. Moreover, regional agreements are contributing to a new power balance in the global scene.

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Bibliographic Info

Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

Volume (Year): 01 (2000)
Issue (Month): 2 ()

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Handle: RePEc:ags:ecjilt:23840

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Keywords: Latin America; multinationalism; preferential trade agreements; regionalism; International Relations/Trade;


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  1. Bulmer-Thomas, Victor, 1998. "The Central American common market: From closed to open regionalism," World Development, Elsevier, vol. 26(2), pages 313-322, February.
  2. Eugene Beaulieu & Annette Hester, 1999. "Regional Trade Agreements, Country Risk and Foreign Direct Investment in Latin America," Working Papers 1999-10, Department of Economics, University of Calgary, revised 02 Jan 1999.
  3. Sebastian Edwards, 1994. "Trade and Industrial Policy Reform in Latin America," NBER Working Papers 4772, National Bureau of Economic Research, Inc.
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