An Egypt-United States Free Trade Agreement: Economic Incentives and Effects
AbstractThis paper explores the economic impact of a free trade agreement (FTA) between Egypt and the United States, assuming that Egypt implements both the recently agreed Arab League FTA and a Partnership Agreement with the European Union. An Egypt-United States agreement would improve Egypt’s economic welfare. Gains would be maximized if the agreement were to greatly reduce the prevalence of non-tariff barriers and ‘red tape’ costs, something that does not appear to be likely under the Arab and EU FTAs. If so, the modelling exercise suggests that both welfare and US exports to Egypt would rise significantly. Arab countries should not be concerned with an Egypt-United States agreement, as there are no major implications for exports to Egypt. The share of Egypt’s imports originating in the rest of the world declines significantly under the FTA scenarios, however. This is costly to both Egypt and to these trading partners. Such costs can be avoided if external trade barriers are lowered in conjunction with the implementation of the various FTAs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1882.
Date of creation: May 1998
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.