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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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    File URL: http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=1803160
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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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    Related research

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

    References

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    1. Limão, Nuno & Olarreaga, Marcelo, 2005. "Trade Preferences to Small Developing Countries and the Welfare Costs of Lost Multilateral Liberalization," CEPR Discussion Papers 5045, C.E.P.R. Discussion Papers.
    2. Baldwin, Richard, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," CEPR Discussion Papers 5775, C.E.P.R. Discussion Papers.
    3. Wilfred J. Ethier, 1998. "Regionalism in a Multilateral World," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1214-1245, December.
    4. Ornelas, Emanuel, 2005. "Trade creating free trade areas and the undermining of multilateralism," European Economic Review, Elsevier, vol. 49(7), pages 1717-1735, October.
    5. Anne O. Krueger, 1993. "Free Trade Agreements as Protectionist Devices: Rules of Origin," NBER Working Papers 4352, National Bureau of Economic Research, Inc.
    6. 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.
    7. Freund, Caroline, 2000. "Multilateralism and the endogenous formation of preferential trade agreements," Journal of International Economics, Elsevier, vol. 52(2), pages 359-376, December.
    8. 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.
    9. Anne O. Krueger, 1995. "Free Trade Agreements versus Customs Unions," NBER Working Papers 5084, National Bureau of Economic Research, Inc.
    10. 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.
    11. 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.
    12. Richard Baldwin, 1993. "A Domino Theory of Regionalism," NBER Working Papers 4465, National Bureau of Economic Research, Inc.
    13. Paul Krugman, 1991. "The move toward free trade zones," Economic Review, Federal Reserve Bank of Kansas City, issue Nov, pages 5-25.
    14. 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.
    15. 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.
    16. 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.
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