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

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Author Info
Bouet, Antoine
Mevel, Simon
Thomas, Marcelle

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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

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 824.

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Date of creation: 2008
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Handle: RePEc:fpr:ifprid:824

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

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  2. Mogues, Tewodaj, 2008. "A two-dimensional measure of polarization:," IFPRI discussion papers 837, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Ruan, Jianqing & Zhang, Xiaobo, 2008. "Credit constraints, organizational choice, and returns to capital: Evidence from a rural industrial cluster in China," IFPRI discussion papers 830, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. Dercon, Stefan & Gilligan, Daniel O. & Hoddinott, John & Woldehan, Tassew, 2008. "The impact of agricultural extension and roads on poverty and consumption growth in fifteen Ethiopian villages:," IFPRI discussion papers 840, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  5. Cororaton, Caesar B., 2008. "The Philippines: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 827, International Food Policy Research Institute (IFPRI). [Downloadable!]
  6. Gilligan, Daniel O. & Hoddinott, John & Taffesse, Alemayehu Seyoum, 2008. "The impact of Ethiopia's Productive Safety Net Programme and its linkages:," IFPRI discussion papers 839, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Yesuf, Mahmud & di Falco, Salvatore & Deressa, Temesgen & Ringler, Claudia & Kohlin, Gunnar, 2008. "The impact of climate change and adaptation on food production in low-income countries: Evidence from the Nile Basin, Ethiopia," IFPRI discussion papers 828, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  8. Bryan, Elizabeth & Akpalu, Wisdom & Yesuf, Mahmud & Ringler, Claudia, 2008. "Global carbon markets: Are there opportunities for Sub-Saharan Africa?," IFPRI discussion papers 832, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  9. Akpalu, Wisdom & Hassan, Rashid M. & Ringler, Claudia, 2008. "Climate variability and maize yield in South Africa: Results from GME and MELE methods," IFPRI discussion papers 843, International Food Policy Research Institute (IFPRI). [Downloadable!]
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