SAFTA: Living in a World of Regional Trade Agreements
AbstractThe paper evaluates the South Asia Free Trade Agreement (SAFTA) within the global structure of overlapping regional trade agreements (RTAs) using a modified gravity equation. First, it examines the effects of the Trade Liberalization Program which started in 2006. SAFTA would have a minor effect on regional trade flows and the impact on custom duties would be a manageable fiscal shock for most members. Second, the paper ranks the trade effects of other potential RTAs for individual South Asian countries and SAFTA: RTAs with North American Free Trade Agreement (NAFTA) and the European Union (EU) dominate one with the Association of South East Asian Nations (ASEAN).
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 07/23.
Date of creation: 01 Feb 2007
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-02 (All new papers)
- NEP-DEV-2007-06-02 (Development)
- NEP-SEA-2007-06-02 (South East Asia)
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