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The effects of alternative free trade agreements on Peru: Evidence from a global computable general equilibrium model

Author

Listed:
  • Bouet, Antoine
  • Mevel, Simon
  • Thomas, Marcelle

Abstract

"By using a global computable general equilibrium model, this report analyzes the impact of various pending free trade agreements for Peru. In December 2007, a Peru–United States free trade agreement (FTA) was finally ratified by the U.S. Congress, replacing the Andean Trade Promotion and Drug Eradication Act, which awarded Peru and other Andean countries nonreciprocal preferential tariffs. A Peru–European Union (EU27) FTA is also being negotiated in the context of Peru's participation in the integration of the Andean Community (CAN). Finally, as of October 2008 Peru is concluding negotiations for a free trade agreement with China, its third major trading partner after the United States and the EU27. Although these agreements are expected to improve market access, their impact on the economic welfare of the beneficiary countries is dependent on the countries' structure of current tariffs and trade and the extent to which the new agreements result in trade diversion versus trade creation. The analysis shows that specific features of Peru's trade and tariff structures make the country a better candidate for a South-South FTA with China than for North-South FTAs with the United States or the EU27." from authors' abstract

Suggested Citation

  • Bouet, Antoine & Mevel, Simon & Thomas, Marcelle, 2008. "The effects of alternative free trade agreements on Peru: Evidence from a global computable general equilibrium model," IFPRI discussion papers 824, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:824
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    References listed on IDEAS

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    1. World Bank, 2005. "Global Economic Prospects 2005 : Trade, Regionalism and Development," World Bank Publications - Books, The World Bank Group, number 14783, December.
    2. Field, Alfred J. & Field, Erica & Torero, Maximo, 2006. "Property rights and crop choice in rural Peru, 1994-2004:," MTID discussion papers 100, International Food Policy Research Institute (IFPRI).
    3. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2000. "Small countries and the case for regionalism vs. multilateralism," TMD discussion papers 54, International Food Policy Research Institute (IFPRI).
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    5. World Bank, 2007. "World Development Indicators 2007," World Bank Publications - Books, The World Bank Group, number 8150, December.
    6. Bureau, Jean-Christophe & Chakir, Raja & Gallezot, Jacques, 2006. "The Utilisation of EU and US Trade Preferences for Developing Countries in the Agri-Food Sector," Working Papers 18867, TRADEAG - Agricultural Trade Agreements.
    7. Mohamed Hedi Bchir & Yvan Decreux & Jean-Louis Guérin & Sébastien Jean, 2002. "MIRAGE, a Computable General Equilibrium Model for Trade Policy Analysis," Working Papers 2002-17, CEPII research center.
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    Cited by:

    1. Bouët, Antoine & Berisha-Krasniqi, Valdete & Estrades, Carmen & Laborde, David, 2012. "Trade and investment in Latin America and Asia: Perspectives from further integration," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 193-210.

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    Keywords

    WTO; Free Trade Agreement; trade liberalization; CGE Modeling;
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