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Regional Trade Agreements for Mercosur: a Comparison Between the FTAA and the FTA with the European Union

Author

Listed:
  • Josefina Monteagudo
  • Masakazu Watanuki

Abstract

This paper analyzes the impact on Mercosur of a free trade area in the Americas (FTAA) and a free trade area with the EU. The results show that trade liberalization generates substantial economic gains for Mercosur, although the FTAA option is slightly inferior to that of the FTA with the EU. Hemispheric integration stimulates export specialization in manufacturing industries relative to primary sector industries.

Suggested Citation

  • Josefina Monteagudo & Masakazu Watanuki, 2003. "Regional Trade Agreements for Mercosur: a Comparison Between the FTAA and the FTA with the European Union," Economie Internationale, CEPII research center, issue 94-95, pages 53-76.
    • Handle: RePEc:cii:cepiei:2003-2q-3qc
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    File URL: http://www.cepii.fr/IE/rev9495/rev9495c.htm
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    Citations

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    Cited by:

    1. Nogues, Julio J., 2017. "Mercosur- EU Trade negotiations: ending trade diversion, strengthening trade institutions," MPRA Paper 92287, University Library of Munich, Germany, revised 2017.
    2. Boyer, Ivan & Schuschny, Andrés Ricardo, 2010. "Quantitative assessment of a free trade agreement between MERCOSUR and the European Union," Estudios Estadísticos 4774, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. Marie Gabrielle Piketty & Lucie Weissleder & Hildo Meirelles De Souza Filho & Mário Otávio Batalha & Marcel Adenäuer & Arno Becker, 2009. "Assessing agricultural trade policies options with the European Union: a Brazilian perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 40(4), pages 447-457, July.
    4. Castilho, Marta Reis, 2005. "Regional integration and the labour market: the Brazilian case," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    5. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Publications - Reports 8083, The World Bank Group.

    More about this item

    Keywords

    CGE Models; Trade Related Externalities; Regional Integration; Scale Economies;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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