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Multilateralising RTAs in the Americas: State of Play and Ways Forward

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  • Matthew Shearer
  • Kati Suominen
  • Antoni Estevadeordal
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    Abstract

    The purpose of this paper is to examine the extent of liberalisation in RTAs in the Americas in comparison to agreements in other world regions, and to put forth policy recommendations for multilateralising the regional RTAs. While primarily focusing on market access in goods-and tariff liberalisation schedules, in particular-we also explore the regional RTAs' employment of rules of origin, investment, and services provisions. While the analysis centres on the depth of liberalisation accomplished by the region's RTAs, we preliminarily investigate the extent to which the regional RTAs feature "open regionalism"-liberalisation vis-à-vis third parties.

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    Bibliographic Info

    Paper provided by Inter-American Development Bank in its series IDB Publications with number 9300.

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    Date of creation: Nov 2009
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    Handle: RePEc:idb:brikps:9300

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    Keywords: Trade Agreements; Integration & Trade; Globalization & Regionalization; IDB-WP-141;

    References

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    1. Anne O. Krueger, 1995. "Free Trade Agreements versus Customs Unions," NBER Working Papers 5084, National Bureau of Economic Research, Inc.
    2. José Ernesto López Córdova & Kati Suominen & Antoni Estevadeordal, 2006. "How do Rules of Origin Affect Investment Flows?: Some Hypotheses and the Case of Mexico," IDB Publications 9343, Inter-American Development Bank.
    3. Cadot, Olivier & de Melo, Jaime & Olarreaga, Marcelo, 2001. "Can bilateralism ease the pains of multilateral trade liberalization?," European Economic Review, Elsevier, vol. 45(1), pages 27-44, January.
    4. Wilfred J. Ethier, 1998. "Regionalism in a Multilateral World," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1214-1245, December.
    5. Jeffrey A. Frankel, 1997. "Regional Trading Blocs in the World Economic System," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 72.
    6. Richard E. Baldwin, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," The World Economy, Wiley Blackwell, vol. 29(11), pages 1451-1518, November.
    7. Corden, W M, 1972. "Economies of Scale and Customs Union Theory," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 465-75, May-June.
    8. Ornelas, Emanuel, 2005. "Trade creating free trade areas and the undermining of multilateralism," European Economic Review, Elsevier, vol. 49(7), pages 1717-1735, October.
    9. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
    10. Baldwin, Richard, 1993. "A Domino Theory of Regionalism," CEPR Discussion Papers 857, C.E.P.R. Discussion Papers.
    11. Limao, Nuno & Olarreaga, Marcelo, 2005. "Trade preferences to small developing countries and the welfare costs of lost multilateral liberalization," Policy Research Working Paper Series 3565, The World Bank.
    12. Harry G. Johnson, 1965. "An Economic Theory of Protectionism, Tariff Bargaining, and the Formation of Customs Unions," Journal of Political Economy, University of Chicago Press, vol. 73, pages 256.
    13. Paul Krugman, 1991. "The move toward free trade zones," Economic Review, Federal Reserve Bank of Kansas City, issue Nov, pages 5-25.
    14. Jeffrey J. Schott (ed.), 2004. "Free Trade Agreements: US Strategies and Priorities," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 375.
    15. Freund, Caroline, 2000. "Multilateralism and the endogenous formation of preferential trade agreements," Journal of International Economics, Elsevier, vol. 52(2), pages 359-376, December.
    16. Jeffrey A. Frankel and Shang-Jin Wei., 1995. "European Integration and the Regionalization of World Trade and Currencies: The Economics and the Politics," Center for International and Development Economics Research (CIDER) Working Papers C95-053, University of California at Berkeley.
    17. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
    18. Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
    19. Antoni Estevadeordal & José Ernesto López-Córdova & Kati Suominen, 2006. "How do rules of origin affect investment flows ? : some hypotheses and the case of Mexico," INTAL Working Papers 1444, Inter-American Development Bank, INTAL.
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    Cited by:
    1. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications 26158, Inter-American Development Bank.
    2. Matthew Shearer & Juliana Salles Almeida & Carlos H. Gutiérrez Jr., 2009. "The Treatment of Agriculture in Regional Trade Agreements in the Americas," IDB Publications 23538, Inter-American Development Bank.

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