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Why a market place must not discriminate: The case against a US-EU free trade agreement

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  • Langhammer, Rolf J.

Abstract

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.

Suggested Citation

  • Langhammer, Rolf J., 2008. "Why a market place must not discriminate: The case against a US-EU free trade agreement," Kiel Working Papers 1407, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkwp:1407
    as

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    File URL: https://www.econstor.eu/bitstream/10419/4240/1/KWP_1407.pdf
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    References listed on IDEAS

    as
    1. 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, June.
    2. Rolf J. Langhammer & Daniel Piazolo & Horst Siebert, 2002. "Assessing Proposals for a Transatlantic Free Trade Area," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 57(02), pages 161-186, June.
    3. Baldwin, Richard & Francois, Joseph, 1997. "Preferential Trade Liberalization in the North Atlantic," CEPR Discussion Papers 1611, C.E.P.R. Discussion Papers.
    4. 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, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Multilateral trade policy; Free trade area; Regional trading arrangement;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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