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Trade Policy Options for Chile: The Importance of Market Access

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Author Info

  • Glenn W. Harrison
  • Thomas F. Rutherford
  • David G. Tarr

Abstract

This article uses a multisector, multicountry, computable general equilibrium model to examine Chile's strategy of "additive regionalism"--negotiating bilateral free trade agreements with all of its significant trading partners. Taking Chile's regional arrangements bilaterally, only its agreements with Northern partners provide sufficient market access to overcome trade diversion costs. Due to preferential market access, however, additive regionalism is likely to provide Chile with gains that are many multiples of the static welfare gains from unilateral free trade. At least one partner country loses from each of the regional agreements considered, and excluded countries as a group always lose. Gains to the world from global free trade are estimated to be vastly larger than gains from any of the regional arrangements. Copyright 2002, Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal The World Bank Economic Review.

Volume (Year): 16 (2002)
Issue (Month): 1 (June)
Pages: 49-79

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Handle: RePEc:oup:wbecrv:v:16:y:2002:i:1:p:49-79

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Citations

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Cited by:
  1. Hertel, Thomas & Keeney, Roman & Ivanic, Maros & Winters, Alan, 2006. "Distributional Effects of WTO Agricultural Reforms in Rich and Poor Countries," GTAP Working Papers 2185, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  2. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 2003. "Trade liberalization, poverty and efficient equity," Journal of Development Economics, Elsevier, vol. 71(1), pages 97-128, June.
  3. Chauffour, Jean-Pierre & Maur, Jean-Christophe, 2010. "Beyond market access : the new normal of preferential trade agreements," Policy Research Working Paper Series 5454, The World Bank.
  4. Glenn W Harrison & Thomas F Rutherford & David G Tarr, 2003. "Rules of Thumb for Evaluating Preferential Trading Arrangement: Evidence from CGE Assessments," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 460-468.
  5. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr & Angelo Gurgel, 2004. "Trade Policy and Poverty Reduction in Brazil," Working Papers Central Bank of Chile 276, Central Bank of Chile.
  6. Glenn W. Harrison & Thomas F. Rutherford & Tarr,David, 2003. "Rules of thumb for evaluating preferential trading arrangements : evidence from computable general equilibrium assessments," Policy Research Working Paper Series 3149, The World Bank.
  7. Luca David Opromolla & Alfonso Irarrazabal, 2005. "Trade Reforms in a Global Competition Model: the Case of Chile," International Trade 0508007, EconWPA.
  8. Jensen, Jesper & Tarr, David G., 2010. "Regional trade policy options for Tanzania : the importance of services commitments," Policy Research Working Paper Series 5481, The World Bank.
  9. Braymen, Charles B., 2011. "Sectoral structure, heterogeneous plants, and international trade," Economic Modelling, Elsevier, vol. 28(4), pages 1967-1976, July.
  10. Rutherford, Thomas & Tarr, David, 2008. "Regional household and poverty effects of Russia's accession to the world trade organization," Policy Research Working Paper Series 4570, The World Bank.
  11. Hernandez, Gustavo Adolfo & Light, Miles & Rutherford, Thomas, 2002. "A dynamic general equilibrium model for tax policy analysis in Colombia," MPRA Paper 28435, University Library of Munich, Germany.

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