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The United States and the New Regionalism/ Bilateralism

Author

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  • Yongzheng Yang
  • Mr. Alvin Hilaire

Abstract

Current U.S. trade policy stresses establishing free trade areas (FTAs) with partners spanning the globe. Motivations include enhancing goods and services trade; stimulating investment flows; extending standards on intellectual property rights, labor, and the environment; and addressing geopolitical concerns. Simulations of FTAs with the United States highlight the importance of trade complementarity, trade diversion, and welfare losses for nonmembers. Agriculture and textiles play a central role in determining welfare outcomes. Initial improvement in market access enjoyed by participants could be eroded progressively as global liberalization proceeds, and this preference erosion might act as a disincentive to participate in multilateral liberalization.

Suggested Citation

  • Yongzheng Yang & Mr. Alvin Hilaire, 2003. "The United States and the New Regionalism/ Bilateralism," IMF Working Papers 2003/206, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/206
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    References listed on IDEAS

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    Cited by:

    1. Ulrich Krotz, 2008. "The (Beginning of the) End of the Political Unity of the West? Four Scenarios of North Atlantic Futures," EUI-RSCAS Working Papers 31, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    2. Estrades, Carmen & Traore, Fousseini & Djiofack Zebaze, Calvin & Cardozo, Adriana, 2015. "DR-CAFTA Agreement and liberalization of trade in services: Evidence from Costa Rica," Conference papers 332581, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Carlos Felipe Jaramillo & Daniel Lederman & Maurizio Bussolo & David Gould & Andrew Mason, 2006. "Challenges of CAFTA : Maximizing the Benefits for Central America," World Bank Publications - Books, The World Bank Group, number 7127, December.
    4. 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.
    5. Drusilla K. Brown & Kozo Kiyota & Robert M. Stern, 2005. "Computational Analysis of the US FTAs with Central America, Australia and Morocco," The World Economy, Wiley Blackwell, vol. 28(10), pages 1441-1490, October.
    6. Andreas Dür, 2007. "EU Trade Policy as Protection for Exporters: The Agreements with Mexico and Chile," Journal of Common Market Studies, Wiley Blackwell, vol. 45, pages 833-855, November.
    7. Adagblenya, Barbara Dzidzornu, 2017. "Assessing Ghana’s trade under the African Growth and Opportunity Act (AGOA)," MPRA Paper 84255, University Library of Munich, Germany.
    8. Aguiar, Angel & Walmsley, Terrie & Abrevaya, Jason, 2007. "Effects of Bilateral Trade on Migration Flows: the case of the United States," Conference papers 331627, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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