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The Preference for New Preferential Trade Agreements: Does It Lead to a Good Use of Scarce Resources?

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Author Info

  • Kerr, William A.

Abstract

At the end of 2010 there are more than 100 new preferential trade agreements being contemplated. At the same time there are approximately 200 existing trade agreements whose provisions leave large additional potential gains from trade on the table. Despite these potential benefits, there appears to be little enthusiasm for recontracting efforts centred on existing agreements. This suggests that there is an inefficient deployment of scarce negotiating resources. Exceptions do exist, such as the European Union, which has strong institutional mechanisms - including, in particular, the Commission - that foster further market integration. While the EU's institutional model may not be suitable for all preferential agreements, incorporating a formal recontracting mechanism into new agreements will provide opportunities to garner additional gains from trade in the future.

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Bibliographic Info

Article provided by Food and Agriculture Organization, Agricultural and Development Economics Division in its journal eJADE: electronic Journal of Agricultural and Development Economics.

Volume (Year): 12 (2011)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:ags:ejadef:99283

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Related research

Keywords: economic integration; institutions; preferential trade agreements; recontracting; Institutional and Behavioral Economics; International Relations/Trade; Political Economy;

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Cited by:
  1. Viju, Crina & Yeung, May T. & Kerr, William A., 2012. "Geographical Indications, Barriers to Market Access and Preferential Trade Agreements," Commissioned Papers 122741, Canadian Agricultural Trade Policy Research Network.
  2. Kerr, William A., 2012. "The EU-Canada Free Trade Agreement: What is on the Table for Agriculture?," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135067, Agricultural Economics Society.

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