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The EU-Mercosul free trade agreement: Quantifying mutual gains

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  • Calfat, Germán
  • Flôres Junior, Renato Galvão

Abstract

We identify trade in goods opportunities in a EU-Mercosul free trade area. Gains for Mercosul are rather concentrated, being mostly associated with a few agricultural commodities which face high protection barriers. EU gains are evenly spread, comprising a variety of market penetration possibilities. Trade deviation in the EU products is never higher than trade creation, confirming their international competitiveness and signalling that no great distortion of Mercosul's imports will take place. Balanced gains exist for both sides. For Mercosul, the agreement would act as a first serious trial for future liberalizations with other developed partners and as a warning on improvements in competitiveness. Copyright 2006 Blackwell Publishing Ltd.

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Paper provided by FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil) in its series Economics Working Papers (Ensaios Economicos da EPGE) with number 575.

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Date of creation: 01 Dec 2004
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Handle: RePEc:fgv:epgewp:575

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  1. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, Elsevier, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier.
  2. Philip C. Abbott, 2002. "Tariff-rate quotas: failed market access instruments?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 109-130, March.
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Cited by:
  1. Sallum, Elvia Mureb & Barbosa, Fernando de Holanda & Cunha, Alexandre Barros da, 2005. "Competitive Equilibrium Hyperinflation under Rational Expectations," Economics Working Papers (Ensaios Economicos da EPGE), FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil) 578, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  2. Agramont, Daniel Agramont & Aliaga Lordemann, Javier, 2010. "Potential gains for Bolivia of the subscription of an association Agreement with the European Union," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 14, pages 127-161.
  3. Honório Kume & Guida Piani & Pedro Miranda, 2005. "Índia-Mercosul: Perspectivas de um Acordo de Preferências Comerciais," Discussion Papers, Instituto de Pesquisa Econômica Aplicada - IPEA 1120, Instituto de Pesquisa Econômica Aplicada - IPEA.
  4. Barbosa, Fernando de Holanda, 2005. "The Contagion Effect of Public Debt on Monetary Policy: The Brazilian Experience," Economics Working Papers (Ensaios Economicos da EPGE), FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil) 591, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  5. Flôres Jr, Renato G., 2013. "In Search of a Feasible EU-Mercosul Free Trade Agreement," CEPS Papers, Centre for European Policy Studies 7767, Centre for European Policy Studies.
  6. Horowitz, Andrew W. & Flôres Junior, Renato Galvão, 2004. "Beyond indifferent players: On the existence of Prisoners Dilemmas in games with amicable and adversarial preferences," Economics Working Papers (Ensaios Economicos da EPGE), FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil) 576, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).

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