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Abstract

After signing ten free trade agreements between 1993 and 2001, Mexico as a world leader in foreign trade policy continues to negotiate with countries such as Japan, Panama, Uruguay or Argentina. Criticism of multiple regional trade agreements (RTAs) arises from a consistency test, but also from the ability of a country to administer them. Mexico's multiple agreements have generally used the principle of NAFTA consistency, after the acceptance that NAFTA became a broader and deeper accord than results of the Uruguay multilateral achievements. An analysis of multiple RTAs is presented, including a game model of equilibrium, along with a political economy approach of why Mexico seeks multiple RTAs as its foreign trade policy.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9692.

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Date of creation: May 2003
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Handle: RePEc:nbr:nberwo:9692

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• F1 - International Economics - - Trade
• L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

This paper has been announced in the following NEP Reports:

• NEP-ALL-2003-05-15 (All new papers)

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1. Magnus Blomstrom & Ari Kokko, 1997. "Regional Integration and Foreign Direct Investment," NBER Working Papers 6019, National Bureau of Economic Research, Inc.
   
   • Blomström, Magnus & Kokko, Ari, 1997. "Regional Integration and Foreign Direct Investment," Working Paper Series in Economics and Finance 172, Stockholm School of Economics.
   • Blomström, Magnus & Kokko, Ari, 1997. "Regional Integration and Foreign Direct Investment," CEPR Discussion Papers 1659, C.E.P.R. Discussion Papers.
2. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier.
3. Caroline L. Freund, 2000. "Spaghetti regionalism," International Finance Discussion Papers 680, Board of Governors of the Federal Reserve System (U.S.).
4. Gene M. Grossman & Elhanan Helpman, 1993. "The Politics of Free Trade Agreements," NBER Working Papers 4597, National Bureau of Economic Research, Inc.
   
   • Grossman, Gene M & Helpman, Elhanan, 1995. "The Politics of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 85(4), pages 667-90, September.
   • Grossman, G.M. & Helpman, E., 1993. "The Politics of Free Trade Agreements," Papers 14-93, Tel Aviv.
   • Grossman, G.M. & Helpman, E., 1993. "The Politics of Free Trade Agreements," Papers 166, Princeton, Woodrow Wilson School - Public and International Affairs.
   • Grossman, Gene & Helpman, Elhanan, 1994. "The Politics of Free Trade Agreements," CEPR Discussion Papers 908, C.E.P.R. Discussion Papers.
5. Pravin Krishna, . "Regionalism and Multilaterialism: A Political Economy Approach," Working Papers 96-5, Brown University, Department of Economics.
   
   • Pravin Krishna, 1998. "Regionalism And Multilateralism: A Political Economy Approach," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 227-250, February.
6. Wei, Shang-Jin & Frankel, Jeffrey A., 1996. "Can regional blocs be a stepping stone to global free trade? a political economy analysis," International Review of Economics & Finance, Elsevier, vol. 5(4), pages 339-347.
7. Jaime MELO DE & Olivier CADOT & OLARREAGA, 1998. "Can Bilateralism Ease the Pains of Trade Liberalisation ?," Working Papers 199802, CERDI.
8. 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.
   
   • Cadot, Olivier & de Melo, Jaime & Olarreaga, Marcelo, 1998. "Can Bilateralism Ease the Pains of Multilateral Trade Liberalization?," CEPR Discussion Papers 1878, C.E.P.R. Discussion Papers.
   • Cadot, O. & de Melo, J. & Olarreaga, M., 1998. "Can Bilateralism Ease the Pains of Multilateral Trade Liberalization?," Research Papers by the Department of Economics, University of Geneva 98.11, Département des Sciences Économiques, Université de Genève.
9. Sang-Seung, Yi, 1996. "Endogenous formation of customs unions under imperfect competition: open regionalism is good," Journal of International Economics, Elsevier, vol. 41(1-2), pages 153-177, August.
10. DeRosa, Dean A., 1998. "Regional integration arrangements : static economic theory, quantitative findings, and policy guidelines," Policy Research Working Paper Series 2007, The World Bank.
11. Brown, D.K. & Deardorff, A.V. & Stern, R.M., 1991. "A North American Free Trade Agreement: Analytical Issues and A Computational Assessment," Working Papers 289, Research Seminar in International Economics, University of Michigan.
12. Gary Clyde Hufbauer & Jeffrey J. Schott, 1993. "NAFTA: An Assessment, Revised Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 70, 1st quart.

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Cited by:

1. Islam, Sulequl, 2003. "Expansions of the European Union and the NAFTA: Implications for New and Non-Member countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 3(2).
2. Manzano, George, 2004. "Preferential Rules of Origin for the Japan-Philippine Economic Partnership: Issues and Prospects," Discussion Papers DP 2004-07, Philippine Institute for Development Studies.
3. M. Ayhan Kose & Christopher M. Towe & Guy Meredith, 2004. "How has NAFTA Affected the Mexican Economy? Review and Evidence," IMF Working Papers 04/59, International Monetary Fund.
4. Agata Antkiewicz & John Whalley, 2005. "BRICSAM and the Non-WTO," CESifo Working Paper Series 1498, CESifo Group Munich.
   
   • Agata Antkiewicz & John Whalley, 2006. "BRICSAM and the non–WTO," The Review of International Organizations, Springer, vol. 1(3), pages 237-261, September.
5. Octavio Escobar, 2011. "The location pattern of FDI in Mexico after NAFTA," ERSA conference papers ersa10p804, European Regional Science Association.

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