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Chile’s Trade Policy: an Assessment

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  • Maurice Schiff

Abstract

This paper reviews some of the main findings of recent research on the politics, economics and political economy of regional integration, and assesses Chile's trade and regional integration policies. It concludes that i) Chile is likely to obtain static and dynamic benefits from a FTA with the US, though the benefits depend crucially on the extent to which its market access to the US improves, and on the cost of implementing the intellectual property rights agreement and on the cost of the rules of origin; ii) benefits are more doubtful with respect to FTAs with MERCOSUR and Andean Pact and Central American countries; iii) Chile is negotiating with the EU and should start negotiating FTAs with Asian countries; iv) it should bind all its tariffs at the WTO at the applied MFN uniform tariff rate; and v) the uniform MFN tariff should be reduced below 6% after 2003.

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  • Maurice Schiff, 2002. "Chile’s Trade Policy: an Assessment," Working Papers Central Bank of Chile 151, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:151
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    1. Bernard Hoekman & Carlos Braga, 1997. "Protection and Trade in Services: A Survey," Open Economies Review, Springer, vol. 8(3), pages 285-308, July.
    2. Hirschman,Albert O., 1981. "Essays in Trespassing," Cambridge Books, Cambridge University Press, number 9780521282437.
    3. Otsuki, Tsunehiro*Wilson,John S.*Sewadeh, Mirvat, 2001. "A race to the top? A case study of food safety standards and African exports," Policy Research Working Paper Series 2563, The World Bank.
    4. Fernandez, Raquel & Portes, Jonathan, 1998. "Returns to Regionalism: An Analysis of Nontraditional Gains from Regional Trade Agreements," World Bank Economic Review, World Bank Group, vol. 12(2), pages 197-220, May.
    5. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    6. Hufbauer, Gary Clyde & Kotschwar, Barbara & Wilson,John S., 2001. "Trade policy, standards, and development in Central America," Policy Research Working Paper Series 2576, The World Bank.
    7. Dan Ben-David, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 653-679.
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