Trade Impacts of Selected Regional Trade Agreements in Agriculture
AbstractThis paper provides an in-depth examination of the trade effects of three regional trade agreements (RTAs) – the ASEAN Free Trade Agreement (AFTA), the Common Market for Eastern and Southern Africa (COMESA) and the Southern Cone Common Market (MERCOSUR) -- in the agricultural sector. Results from a gravity model suggest that the creation of AFTA, COMESA and MERCOSUR have increased trade in agricultural products between their member countries. There is no robust indication of trade diversion with respect to imports from outside the region. The agreements are therefore net trade creating. There is no robust indication however that there has been strong trade creation with non-members in the case of any of the RTAs under study. In some cases, lack of transport and communications infrastructure, in addition to supply constraints, lessens the effect of the RTA on trade flows. Trade costs such as transport and logistics seem to remain important factors in determining agricultural trade flows. In some RTAs, countries have a comparative advantage in exporting many of the same agricultural products, thereby decreasing the impact of the preferential market access. A number of implications for South-South RTAs can be drawn from examining these very different agreements.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by OECD Publishing in its series OECD Trade Policy Papers with number 87.
Date of creation: 03 Apr 2009
Date of revision:
trade liberalisation; RTA; agricultural trade; gravity model; COMESA; ASEAN; trade creation; access; South-South; trade diversion; preferential market access; tariffs; regional trade agreements; AFTA; Mercosur;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-04-13 (Africa)
- NEP-AGR-2009-04-13 (Agricultural Economics)
- NEP-ALL-2009-04-13 (All new papers)
- NEP-INT-2009-04-13 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baldwin, Richard & Taglioni, Daria, 2006.
"Gravity for Dummies and Dummies for Gravity Equations,"
CEPR Discussion Papers
5850, C.E.P.R. Discussion Papers.
- Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
- Anna Maria Mayda & Chad Steinberg, 2009.
"Do South-South trade agreements increase trade? Commodity-level evidence from COMESA,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 42(4), pages 1361-1389, November.
- Anna Maria Mayda & Chad Steinberg, 2007. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," IMF Working Papers 07/40, International Monetary Fund.
- Anna Maria Mayda & Chad Steinberg, 2008. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," Development Working Papers 247, Centro Studi Luca d\'Agliano, University of Milano.
- Anna Maria Mayda & Chad Steinberg, 2006. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," Working Papers gueconwpa~06-06-03, Georgetown University, Department of Economics.
- De Sousa, Jose & Mayer, Thierry & Zignago, Soledad, 2011.
"Market access in global and regional trade,"
35602, University Library of Munich, Germany.
- Soledad Zignago & Thierry Mayer, 2005. "Market Access in Global and Regional Trade," Sciences Po Economics Discussion Papers 2005-02, Sciences Po Departement of Economics.
- Thierry Mayer & Soledad Zignago, 2005. "Market Access in Global and Regional Trade," Working Papers 2005-02, CEPII research center.
- de Sousa, José & Mayer, Thierry & Zignago, Soledad, 2012. "Market Access in Global and Regional Trade," CEPR Discussion Papers 9085, C.E.P.R. Discussion Papers.
- de Sousa, J. & Mayer, T. & Zignago, S., 2011. "Market access in global and regional trade," Working papers 358, Banque de France.
- De Sousa, José & Mayer, Thierry & Zignago, Soledad, 2012. "Market Access in Global and Regional Trade," CEPREMAP Working Papers (Docweb) 1201, CEPREMAP.
- Sawkut Rojid, 2006. "COMESA trade potential: a gravity approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(14), pages 947-951.
- Philippa Dee, 2005.
"East Asian Economic Integration and its Impact on Future Growth,"
Development Economics Working Papers
21988, East Asian Bureau of Economic Research.
- Philippa Dee, 2007. "East Asian Economic Integration and its Impact on Future Growth," The World Economy, Wiley Blackwell, vol. 30(3), pages 405-423, 03.
- Philippa Dee, 2005. "East Asian Economic Integration and its Impact on Future Growth," Asia Pacific Economic Papers 350, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
- Guillaume Gaulier & Sébastien Jean & Deniz Ünal-Kesenci, 2004. "Regionalism and the Regionalisation of International Trade," Working Papers 2004-16, CEPII research center.
- Jacob Wanjala Musila, 2005. "The Intensity of Trade Creation and Trade Diversion in COMESA, ECCAS and ECOWAS: A Comparative Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(1), pages 117-141, March.
- John Gilbert & Robert Scollay & Bijit Bora, 2011.
"Assessing Regional Trading Arrangements in the Asia-Pacific,"
2001-20, Utah State University, Department of Economics.
- John Gilbert & Robert Scollay & Bijit Bora, 2011. "Assessing Regional Trading Arrangements in the Asia-Pacific," Working Papers 200101, Utah State University, Department of Economics and Finance.
- Soloaga, Isidro & Alan Wintersb, L., 2001.
"Regionalism in the nineties: what effect on trade?,"
The North American Journal of Economics and Finance,
Elsevier, vol. 12(1), pages 1-29, March.
- Soloaga, Isidro & Winters, L. Alan, 1999. "Regionalism in the Nineties: What Effect on Trade?," CEPR Discussion Papers 2183, C.E.P.R. Discussion Papers.
- Santos Silva, Joao & Tenreyro, Silvana, 2005.
"The Log of Gravity,"
CEPR Discussion Papers
5311, C.E.P.R. Discussion Papers.
- Joao Santos Silva & Silvana Tenreyro, 2005. "The Log of Gravity," CEP Discussion Papers dp0701, Centre for Economic Performance, LSE.
- Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics 3744, London School of Economics and Political Science, LSE Library.
- Ghosh, Sucharita & Yamarik, Steven, 2004. "Are regional trading arrangements trade creating?: An application of extreme bounds analysis," Journal of International Economics, Elsevier, vol. 63(2), pages 369-395, July.
- Jong-Wha Lee & Innwon Park, 2005. "Free Trade Areas in East Asia: Discriminatory or Non-discriminatory?," The World Economy, Wiley Blackwell, vol. 28(1), pages 21-48, 01.
- Gert-Jan M. Linders & Henri L.F. de Groot, 2006. "Estimation of the Gravity Equation in the Presence of Zero Flows," Tinbergen Institute Discussion Papers 06-072/3, Tinbergen Institute.
- Carrere, Celine, 2006. "Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model," European Economic Review, Elsevier, vol. 50(2), pages 223-247, February.
- Lucian Cernat, 2001. "ASSESSING REGIONAL TRADE ARRANGEMENTS: ARE SOUTH–SOUTH RTAs MORE TRADE DIVERTING?," International Trade 0109001, EconWPA.
- Brooks, Douglas & Ferrarini, Benno & Go, Eugenia, 2013. "Bilateral Trade and Food Security," ADB Economics Working Paper Series 367, Asian Development Bank.
- van Dijk, Michiel, 2011. "African Regional Integration: Implications for Food Security," Paper Series 101645, Agricultural Economics Research Institute.
- Nawrocka, Agnieszka Baer & Sapa, Agnieszka, 2013. "Agricultural Labour Productivity and the Intensity of Agri-food Trade in Selected Regional Trade Agreements," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152381, International Agricultural Trade Research Consortium.
- Douillet, Mathilde, 2012. "Trade policies and agricultural exports of Sub-Saharan African countries: Some stylized facts and perspectives," MPRA Paper 40962, University Library of Munich, Germany.
- Nabil Chaherli & John Nash, 2013. "Agricultural Exports from Latin America and the Caribbean : Harnessing Trade to Feed the World and Promote Development," World Bank Other Operational Studies 16048, The World Bank.
- Pascal Ghazalian, 2013. "MERCOSUR enlargement: predicting the effects on trade in primary agricultural commodities," Economic Change and Restructuring, Springer, vol. 46(3), pages 277-297, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.