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Scenarios for Trade Integration in the Americas

Author

Listed:
  • Xinshen Diao
  • Eugenio Díaz-Bonilla
  • Sherman Robinson

Abstract

This paper analyzes two potential trade liberalization scenarios: a Free Trade Area of the Americas (FTAA) and an agreement between MERCOSUR and the European Union (EU). The paper utilizes a world general equilibrium model with some macro elements such as rigidities in wages and exchange rates. The empirical results show that the two regional integration scenarios create trade and increase welfare for the participants (more for the Latin American countries than for either the US or the EU) with little impact on non-participants.

Suggested Citation

  • Xinshen Diao & Eugenio Díaz-Bonilla & Sherman Robinson, 2003. "Scenarios for Trade Integration in the Americas," Economie Internationale, CEPII research center, issue 94-95, pages 33-51.
    • Handle: RePEc:cii:cepiei:2003-2q-3qb
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    References listed on IDEAS

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    1. Lewis, Jeffrey D. & Robinson, Sherman & Wang, Zhi, 1995. "Beyond the Uruguay Round: The implications of an Asian free trade area," China Economic Review, Elsevier, vol. 6(1), pages 35-90.
    2. Robinson, Sherman, 1991. "Macroeconomics, financial variables, and computable general equilibrium models," World Development, Elsevier, vol. 19(11), pages 1509-1525, November.
    3. Hinojosa-Ojeda, Raul A. & Robinson, Sherman & Lewis, Jeffrey D., 1995. "Regional integration options for Central America and the Caribbean after NAFTA," The North American Journal of Economics and Finance, Elsevier, vol. 6(2), pages 121-148.
    4. Robinson, Sherman & Thierfelder, Karen, 2002. "Trade liberalisation and regional integration: the search for large numbers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(4), pages 1-20.
    5. Mary E. Burfisher & Sherman Robinson & Karen Thierfelder, 2001. "The Impact of NAFTA on the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 125-144, Winter.
    6. Cattaneo, Andrea & Diaz-Bonilla, Eugenio & Robinson, Sherman & Thomas, Marcelle, 2000. "Food security and trade negotiations in the World Trade Organization: a cluster analysis of country groups," TMD discussion papers 59, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Ludena, Carlos E. & Wong, Sara, 2006. "Domestic Support Policies for Agriculture in Ecuador and the U.S.-Andean Countries Free Trade Agreement: An Applied General Equilibrium Assessment," 2006 Annual meeting, July 23-26, Long Beach, CA 21349, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. De Miguel, Carlos J. & Durán Lima, José Elías & Schuschny, Andrés Ricardo, 2007. "Trade agreements by Colombia, Ecuador and Peru with the United States: effects on trade, production and welfare," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    3. Liu, Xiaohe & Fang, Lan & You, Hongye, 2007. "Agriculture Trade Liberalization and Poverty in China: Linked CGE Model Analysis," Conference papers 331628, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Schejtman, Alexander & Berdegué, Julio A., 2006. "El Impacto Social de la Integración Regional en América Latina Rural," IDB Publications (Working Papers) 2327, Inter-American Development Bank.
    5. Alexander Schejtman & Julio A. Berdegué, 2006. "El Impacto Social de la Integración Regional en América Latina Rural," IDB Publications (Working Papers) 9125, Inter-American Development Bank.
    6. Ricardo Arguello C. & Ernesto Valenzuela, 2006. "Market access in the Western Hemisphere: implications for the Andean Community," Perfil de Coyuntura Económica, Universidad de Antioquia, CIE.
    7. Pavel Neumann, 2008. "Fragmentation versus Unity of the World Economy [Fragmentace versus jednota světové ekonomiky]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2008(2), pages 70-89.
    8. Jacopo Timini & Francesca Viani, 2022. "A highway across the Atlantic? Trade and welfare effects of the EU-Mercosur agreement," International Economics, CEPII research center, issue 169, pages 291-308.
    9. Jacopo Timini & Francesca Viani, 2020. "The EU-MERCOSUR free trade agreement: main features and economic impact," Economic Bulletin, Banco de España, issue 1/2020.
    10. Jacopo Timini & Francesca Viani, 2020. "El tratado de libre comercio entre la UE y el MERCOSUR: principales elementos e impacto económico," Boletín Económico, Banco de España, issue 1/2020.
    11. Philippidis, G. & Resano, H. & Sanjuán, A.I., 2014. "Shifting Armington trade preferences: A re-examination of the Mercosur–EU negotiations," Economic Modelling, Elsevier, vol. 40(C), pages 21-32.
    12. Buetre, Benjamin & Nair, Roneel & Che, Nhu & Podbury, Troy, 2004. "Agricultural Trade Liberalization: Effects on developing countries' output, incomes and trade," Conference papers 331287, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Morley, Samuel & Piñeiro, Valeria, 2004. "The effect of WTO and FTAA on agriculture and the rural sector in Latin America," DSGD discussion papers 3, International Food Policy Research Institute (IFPRI).
    14. Turner, James A. & Buongiorno, Joseph & Zhu, Shushuai, 2005. "Effects of the Free Trade Area of the Americas on Forest Resources," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 34(01), pages 1-15, April.
    15. Diao, Xinshen & Díaz-Bonilla, Eugenio & Robinson, Sherman & Orden, David, 2005. "Tell me where it hurts, an' I'll tell you who to call: industrialized countries' agricultural policies and developing countries," MTID discussion papers 84, International Food Policy Research Institute (IFPRI).
    16. Teteryatnikova, Mariya, 2008. "R&D in the network of international trade: Multilateral versus regional trade agreements," WTO Staff Working Papers ERSD-2009-03, World Trade Organization (WTO), Economic Research and Statistics Division.

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    More about this item

    Keywords

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    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • F1 - International Economics - - Trade

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