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Integration options for Mercosur : a quantitative analysis by the AMIDA model

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Author Info
Renato G. Flores (Instituto para la Integración de América Latina y el Caribe, INTAL)
Masakazy Watanuki (Instituto para la Integración de América Latina y el Caribe, INTAL)
Abstract

Los recientes desarrollos en las fronteras multilaterales y regionales llaman a una reevaluación de las opciones de comercio e integración para el MERCOSUR. Aplicando un nuevo modelo CGE, evaluamos 6 escenarios. La simulación indicó que los acuerdos comerciales generarán ganancias relativamente pequeñas pero positivas. La integración con Estados Unidos y la Unión Europea, dos socios clave, tendrá resultados divergentes y opuestos. El sector agrícola será el claro ganador, mientras que el MERCOSUR tendrá un problema de competitividad en el sector de manufacturas de capital-intensivas. Esto demuestra que la presente política comercial del bloque está en un camino correcto. Sin embargo, es indudablemente importante para el bloque resolver las iniciativas regionales con una perspectiva de largo plazo, y esencial para hacer eficiente y modernizar sus sectores productivos para la sostenibilidad del saldo comercial y el crecimiento = The recent developments at the multilateral and regional fronts call for a re-evaluation of trade and integration options for MERCOSUR. Applying a brand new CGE model, we evaluated six scenarios. The simulation results indicate that trade agreements will generate relatively small but positive gains. Integration with the Unites States and the European Union, two key partners, will have somewhat divergent and opposite outcomes. Agriculture will be a clear winner, while MERCOSUR has competitiveness issue in capital-intensive manufacturing sectors. It is revealed that the bloc's present trade policy is on a right track. Nevertheless it is undoubtedly important for the bloc to clinch regional initiatives with long-term perspective, and essential to streamline and modernize their productive sectors for sustained trade balance and growth = Os últimos avanços na area multilateral e regional requer uma reavaliaçao das opçoes comerciais e de integraçao para o MERCOSUL. Aplicando o modelo CGE, avaliamos 6 cenários. La simulaçao indica que os acordos comerciais irao gerar ganhos relativamente pequenos, porem positivos. A integraçao com Estados Unidos e Uniao Européia, dois parceiros chaves, terá resultados divergentes e opostos. O setor agrícola será o grande ganhador, enquanto o MERCOSUL terá um problema de competitividade no setor de manufaturas de capital intensivo. Os resultados demonstram que a presente política comercial do bloque esta no caminho correto. Porem, e importante buscar iniciativas regionais com uma perspectiva de longo prazo, assim como tornar mais eficiente e moderno seus setores produtivos para a sustentaçao do saldo comercial e o crescimento

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Paper provided by Inter-American Development Bank, INTAL in its series INTAL Working Papers with number 1474.

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Length: 68 p.
Date of creation: Feb 2008
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Handle: RePEc:idb:intalp:1474

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Related research
Keywords: MERCADO COMUN DEL SUR; MERCOSUR; INTEGRACION ECONOMICA; INTEGRACION REGIONAL;

Find related papers by JEL classification:
F15 - International Economics - - Trade - - - Economic Integration

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This page was last updated on 2009-12-20.


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