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Why a Marketplace Must Not Discriminate: The Case against a US-EU free Trade Agreement

  • Rolf J. Langhammer

The paper discusses the pros and cons of a Transatlantic free trade area (TAFTA) against the concept of an informal trade-facilitating marketplace between Europe and the US. It finds considerably more cons expecially since TAFTA would be expected to have ever more discriminatory effects to the detriment of dynamic non-member economies mainly in Asia but also in food-exporting regions. Efficiency-enhancing effects are argued to be achievable under a marketplace concept which does not separate insiders from outsiders. It is also shown that in foreign direct investment (FDI) and FDI-related service trade TAFTA seems redundant as in recent years bilateral capital and trade flows have proven to be buoyant without preferential treatment

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1407.

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Length: 20 pages
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:kie:kieliw:1407
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  1. Langhammer, Rolf J. & Piazolo, Daniel & Siebert, Horst, 2002. "Assessing proposals for a transatlantic free trade area," Open Access Publications from Kiel Institute for the World Economy 2769, Kiel Institute for the World Economy (IfW).
  2. Patrick Messerlin, 2007. "Assessing the EC Trade Policy in Goods," Sciences Po publications 01/2007, Sciences Po.
  3. Rolf J. Langhammer, 2005. "The EU Offer of Service Trade Liberalization in the Doha Round: Evidence of a Not-Yet-Perfect Customs Union," Journal of Common Market Studies, Wiley Blackwell, vol. 43(2), pages 311-325, 06.
  4. Baldwin, Richard & Francois, Joseph, 1997. "Preferential Trade Liberalization in the North Atlantic," CEPR Discussion Papers 1611, C.E.P.R. Discussion Papers.
  5. Jeffrey J. Schott & Barbara Oegg, 2001. "Europe and the Americas: Toward a TAFTA-South?," The World Economy, Wiley Blackwell, vol. 24(6), pages 745-759, 06.
  6. repec:spo:wpecon:info:hdl:2441/8230 is not listed on IDEAS
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