IDEAS home Printed from https://ideas.repec.org/p/fgv/epgewp/575.html

The EU-Mercosul free trade agreement: Quantifying mutual gains

Author

Listed:
  • Calfat, Germán
  • Flôres Junior, Renato Galvão

Abstract

We identify trade in goods opportunities in a EU-Mercosul free trade area. Gains for Mercosul are rather concentrated, being mostly associated to a few agricultural commodities nowadays facing high protection barriers. EU gains are evenly spread, comprising a variety of market penetration possibilities. Trade deviation by the EU products is never higher than trade creation, confirming their international competitiveness and signalling that a great distortion of Mercosul’s imports won’t take place. Balanced gains exist for both sides; for Mercosul, the agreement can act as a first serious trial for future liberalisations with other developed partners, and as a warning on needed competitiveness improvements.

Suggested Citation

  • Calfat, Germán & Flôres Junior, Renato Galvão, 2004. "The EU-Mercosul free trade agreement: Quantifying mutual gains," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 575, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    • Handle: RePEc:fgv:epgewp:575
    as

    Download full text from publisher

    File URL: https://repositorio.fgv.br/bitstreams/5f0dfa17-9e08-4232-b7d9-b970fbdd6453/download
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Philip C. Abbott, 2002. "Tariff-rate quotas: failed market access instruments?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(1), pages 109-130, March.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ariel A. Barraud & Author-Name: Ariel A. Barraud, 2011. "Exploring trade flows between MERCOSUR and the EU: what does an export demand function tell us?," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 2, pages 1-1, December.
    2. Barbosa, Fernando de Holanda, 2005. "The contagion effect of public debt on monetary policy: the brazilian experience," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 591, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    3. Daniel Agramont Agramont & Javier Aliaga Lordemann, 2010. "Potential gains for Bolivia of the subscription of an association Agreement with the European Union," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB), issue 14, pages 127-161.
    4. Fernando de Holanda Barbosa, 2017. "Competitive Equilibrium Hyperinflation Under Rational Expectations," SpringerBriefs in Economics, in: Exploring the Mechanics of Chronic Inflation and Hyperinflation, chapter 0, pages 77-91, Springer.
    5. Honório Kume & Guida Piani & Pedro Miranda, 2005. "Índia-Mercosul: Perspectivas de um Acordo de Preferências Comerciais," Discussion Papers 1120, Instituto de Pesquisa Econômica Aplicada - IPEA.
    6. repec:ecr:col027:4774 is not listed on IDEAS
    7. Flôres Jr, Renato G., 2013. "In Search of a Feasible EU-Mercosul Free Trade Agreement," CEPS Papers 7767, Centre for European Policy Studies.
    8. Horowitz, Andrew W. & Flôres Junior, Renato Galvão, 2004. "Beyond indifferent players: on the existence of prisoners dilemmas in games with amicable and adversarial preferences," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 576, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas P. Cornett, 1998. "The problem of transition and reintegration of East and Central Europe: conceptual remarks and empirical problems," ERSA conference papers ersa98p185, European Regional Science Association.
    2. Madani, Dorsati H., 2001. "South-South regional integration and industrial growth : the case of the Andean Pact," Policy Research Working Paper Series 2614, The World Bank.
    3. Haufler, Andreas & Pflüger, Michael, 2003. "Market structure and the taxation of international trade," Discussion Papers in Economics 106, University of Munich, Department of Economics.
    4. Fock, Achim & von Ledebur, Oliver, 1998. "Struktur und Potentiale des Agraraußenhandels Mittel- und Osteuropas," IAMO Discussion Papers 14, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    5. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    6. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    7. Seppo Honkapohja & Frank Westermann, 2009. "Rethinking Subsidiarity in the EU: Economic Principles," Palgrave Macmillan Books, in: Seppo Honkapohja & Frank Westermann (ed.), Designing the European Model, chapter 10, pages 331-365, Palgrave Macmillan.
    8. Richard Baldwin, 2010. "Unilateral Tariff Liberalisation," NBER Working Papers 16600, National Bureau of Economic Research, Inc.
    9. Wilfried Puwein & Fritz Breuss & Peter Huber & Peter Mayerhofer & Gerhard Palme & Fritz Schebeck & Jan Stankovsky, 2002. "Auswirkungen der EU-Erweiterung auf die Wirtschaft Österreichs," WIFO Studies, WIFO, number 23169.
    10. Andrea Bonilla‐Bolaños, 2021. "A step further in the theory of regional integration: A look at the South American integration strategy," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(5), pages 845-873, July.
    11. Piazolo, Daniel & Kokta, Robert M. & Buch, Claudia M., 2001. "Does the East Get What Would Otherwise Flow to the South? FDI Diversion in Europe," Kiel Working Papers 1061, Kiel Institute for the World Economy.
    12. Rossella Bardazzi & Leonardo Ghezzi, 2022. "Large-scale multinational shocks and international trade: a non-zero-sum game," Economic Systems Research, Taylor & Francis Journals, vol. 34(4), pages 383-409, October.
    13. Siotis, Georges, 2003. "Competitive pressure and economic integration: an illustration for Spain, 1983-1996," International Journal of Industrial Organization, Elsevier, vol. 21(10), pages 1435-1459, December.
    14. Tarun Bose & Jannatul Bristy, 2017. "Are Countries Participating into Regional Integration Performing Better in Growth and Liberalization Than Non-Participators? A Study on European Countries," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(2), pages 171-171, January.
    15. Asaftei, Gabriel & Parmeter, Christopher F., 2010. "Market power, EU integration and privatization: The case of Romania," Journal of Comparative Economics, Elsevier, vol. 38(3), pages 340-356, September.
    16. Carmela Martin & Francisco J. Velazquez & Bernard Funck, 2001. "European Integration and Income Convergence : Lessons for Central and Eastern European Countries," World Bank Publications - Books, The World Bank Group, number 13968, April.
    17. Abdulghaffar, Mahmood & Al-Ubaydli, Omar & Mahmood, Omar, 2014. "The Malfunctioning of the Gulf Cooperation Council Single Market: Features, Causes and Remedies," MPRA Paper 55413, University Library of Munich, Germany.
    18. Julian Hinz, 2023. "The ties that bind: geopolitical motivations for economic integration," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(1), pages 51-100, February.
    19. repec:got:cegedp:58 is not listed on IDEAS
    20. 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.
    21. Ibarra-Yunez, Alejandro, 2003. "Spaghetti regionalism or strategic foreign trade: some evidence for Mexico," Journal of Development Economics, Elsevier, vol. 72(2), pages 567-584, December.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fgv:epgewp:575. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Núcleo de Computação da FGV EPGE (email available below). General contact details of provider: https://edirc.repec.org/data/epgvfbr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.