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Preferential Trade Agreements: The Case of EU-Mexico

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Author Info
Busse, Matthias
Huth, Matthias
Koopmann, Georg

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Abstract

The paper evaluates the political and economic incentives to conclude the EU-Mexico Free Trade Agreement (FTA). It discusses EU and Mexican trade policy as well as the multilateral context for FTAs. In addition, using a disaggregated approach at the three-digit Standard International Trade Classification, it identifies the commodities that will be particularly affected by the FTA. The results show that considerable trade effects can be expected in a narrow range of products and that the EU is likely to gain much more than Mexico. In diesem Papier werden die politischen und ökonomischen Anreize zur Vereinbarung des Freihandelsabkommens zwischen der EU und Mexiko bewertet. Dafür werden die europäische und mexikanische Handelspolitik analysiert und der multilaterale Zusammenhang der Bildung von Freihandelsabkommen betrachtet. Darüber hinaus werden die Auswirkungen des Freihandelsabkommens auf der disaggregierten dreistelligen Ebene des internationalen Warenverzeichnisses für den Außenhandel geschätzt. Die Ergebnisse zeigen, daß in einem begrenzten Bereich von Produktgruppen signifikante Handelseffekte zu erwarten sind und daß die EU stärker als Mexiko vom Abkommen profitieren wird.

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Publisher Info
Paper provided by Hamburg Institute of International Economics in its series Discussion Paper Series with number 26269.

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Date of creation: 2000
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Handle: RePEc:ags:hiiedp:26269

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Related research
Keywords: Free Trade Agreement; European Union; Mexico; International Relations/Trade; F15; F17;

References listed on IDEAS
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  1. Panagariya, Arvind & Findlay, Ronald & DEC, 1994. "A political - economy analysis of free trade areas and customs unions," Policy Research Working Paper Series 1261, The World Bank. [Downloadable!]
  2. Gordon H. Hanson & Ann Harrison, 1999. "Trade liberalization and wage inequality in Mexico," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(2), pages 271-288, January.
  3. Richard E. Baldwin, 1997. "The Causes of Regionalism," The World Economy, Blackwell Publishing, vol. 20(7), pages 865-888, November. [Downloadable!] (restricted)
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  4. Baldwin, Richard, 1993. "A Domino Theory of Regionalism," CEPR Discussion Papers 857, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Bhagwati, J. & Panagariya, A., 1996. "Preferential Trading Areas and Multilateralism: Strangers, Friends or Foes?," Discussion Papers 1996_09, Columbia University, Department of Economics.
  6. Clague, Christopher, 1971. "Tariff Preferences and Separable Utility," American Economic Review, American Economic Association, vol. 61(2), pages 188-94, May. [Downloadable!] (restricted)
  7. Bhagwati, Jagdish & Greenaway, David & Panagariya, Arvind, 1998. "Trading Preferentially: Theory and Policy," Economic Journal, Royal Economic Society, vol. 108(449), pages 1128-48, July. [Downloadable!] (restricted)
  8. Sapir, Andre, 1998. "The political economy of EC regionalism," European Economic Review, Elsevier, vol. 42(3-5), pages 717-732, May. [Downloadable!] (restricted)
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  9. Ann Harrison & Gordon Hanson, 1999. "Who Gains from Trade Reform? Some Remaining Puzzles," NBER Working Papers 6915, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Hickman, Bert G. & Lau, Lawrence J., 1973. "Elasticities of substitution and export demands in a world trade model," European Economic Review, Elsevier, vol. 4(4), pages 347-380, December. [Downloadable!] (restricted)
  11. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.

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