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Why a Marketplace Must Not Discriminate: The Case against a US-EU free Trade Agreement

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Author Info

  • Rolf J. Langhammer

Abstract

The paper discusses the pros and cons of a Transatlantic free trade area (TAFTA) against the concept of an informal trade-facilitating marketplace between Europe and the US. It finds considerably more cons expecially since TAFTA would be expected to have ever more discriminatory effects to the detriment of dynamic non-member economies mainly in Asia but also in food-exporting regions. Efficiency-enhancing effects are argued to be achievable under a marketplace concept which does not separate insiders from outsiders. It is also shown that in foreign direct investment (FDI) and FDI-related service trade TAFTA seems redundant as in recent years bilateral capital and trade flows have proven to be buoyant without preferential treatment

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File URL: http://www.ifw-members.ifw-kiel.de/publications/why-a-marketplace-must-not-discriminate-the-case-against-a-us-eu-free-trade-agreement/why-a-marketplace-must-not-discriminate-the-case-against-a-us-eu-free-trade-agreement
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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1407.

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Length: 20 pages
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:kie:kieliw:1407

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Related research

Keywords: Regional trading arrangement; multilateral trade policy; free trade area;

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References

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  1. Langhammer, Rolf J. & Piazolo, Daniel & Siebert, Horst, 2002. "Assessing proposals for a transatlantic free trade area," Open Access Publications from Kiel Institute for the World Economy 2769, Kiel Institute for the World Economy (IfW).
  2. Baldwin, Richard & Francois, Joseph, 1997. "Preferential Trade Liberalization in the North Atlantic," CEPR Discussion Papers 1611, C.E.P.R. Discussion Papers.
  3. Patrick Messerlin, 2007. "Assessing the EC Trade Policy in Goods," Sciences Po publications 01/2007, Sciences Po.
  4. repec:spo:wpecon:info:hdl:2441/8230 is not listed on IDEAS
  5. Jeffrey J. Schott & Barbara Oegg, 2001. "Europe and the Americas: Toward a TAFTA-South?," The World Economy, Wiley Blackwell, vol. 24(6), pages 745-759, 06.
  6. Rolf J. Langhammer, 2005. "The EU Offer of Service Trade Liberalization in the Doha Round: Evidence of a Not-Yet-Perfect Customs Union," Journal of Common Market Studies, Wiley Blackwell, vol. 43(2), pages 311-325, 06.
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