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N° 94-95 |
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| Issues 2-3 2003 |
| Regional Trade
Agreements for Mercosur: a Comparison Between the FTAA and the FTA with
the European Union |
|
Josefina Monteagudo
Masakazu Watanuki
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| This paper analyzes the impact
on Mercosur of a free trade area in the Americas (FTAA) and a free trade
area with the EU. The results show that trade liberalization generates substantial
economic gains for Mercosur, although the FTAA option is slightly inferior
to that of the FTA with the EU. Hemispheric integration stimulates export
specialization in manufacturing industries relative to primary sector industries.
Latin America greatly contributes to this result, since exports to this
destination have a higher capital and technology content than exports to
North America. The FTA with the EU expands agricultural exports. |
Abstract |
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| Thematic
issue: "Agreements on Trade Liberalisation: Latin America and the Caribbean" |
Full
Text |
| CGE Models;
Trade Related Externalities; Regional Integration; Scale Economies |
Keywords |
| C68; F13; F15 |
JEL classification |
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Order form |
