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International trade effects of a potentially revived Trans-Pacific partnership for North America

Author

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  • Baybars KARACAOVALI

    (Department of Economics, University of Hawaii at Manoa, Honolulu, HI, USA)

  • Deveraux TALAGI

    (University of Hawaii at Manoa, Department of Economics, Honolulu, HI, USA)

Abstract

This paper analyzes the international trade relations of the United States, Canada, and Mexico with the now defunct Trans-Pacific Partnership (TPP12) member countries currently and historically in order to provide insights for potential future effects provided United States decides to join the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP or TPP11) with the remaining original TPP countries. Using a gravity model estimation, we find that the existing free trade agreements (FTAs) between TPP12 countries (intra-TPP) and FTAs between TPP12 members and other countries (extra-TPP) have positively impacted trade in the 1980-2015 period. A revived TPP12 agreement promises to boost trade further.

Suggested Citation

  • Baybars KARACAOVALI & Deveraux TALAGI, 2018. "International trade effects of a potentially revived Trans-Pacific partnership for North America," Journal of Economics and Political Economy, EconSciences Journals, vol. 5(3), pages 321–342-3, September.
    • Handle: RePEc:cvv:journ1:v:5:y:2018:i:3:p:321-342
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    JEL classification:

    • F10 - International Economics - - Trade - - - General

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