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Chile’s Trade Policy: an Assessment

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  • Maurice Schiff

Abstract

This paper reviews some of the main findings of recent research on the politics, economics and political economy of regional integration, and assesses Chile's trade and regional integration policies. It concludes that i) Chile is likely to obtain static and dynamic benefits from a FTA with the US, though the benefits depend crucially on the extent to which its market access to the US improves, and on the cost of implementing the intellectual property rights agreement and on the cost of the rules of origin; ii) benefits are more doubtful with respect to FTAs with MERCOSUR and Andean Pact and Central American countries; iii) Chile is negotiating with the EU and should start negotiating FTAs with Asian countries; iv) it should bind all its tariffs at the WTO at the applied MFN uniform tariff rate; and v) the uniform MFN tariff should be reduced below 6% after 2003.

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Bibliographic Info

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 151.

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Date of creation: Apr 2002
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Handle: RePEc:chb:bcchwp:151

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  1. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
  2. Hoekman, Bernard & Primo Braga, Carlos A., 1997. "Protection and trade in services : a survey," Policy Research Working Paper Series 1747, The World Bank.
  3. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "A race to the top? A case study of food safety standards and African exports," Policy Research Working Paper Series 2563, The World Bank.
  4. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
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