8 Regionalism in World Trade
Language:
English
Print Publication Date:
15 Apr 1997
Keywords:
BOOK; liberalization; trade; trade liberalization issue; country; post-Uruguay Round agenda; FTA bandwagon; FTA possibility; Vinerian trade diversion; liberalization process; trade-diversion effect; Trade barriers; Trade liberalization; Tariffs; Imports; Customs unions; Western Hemisphere

Abstract

Suppose a particular developing country (e.g., Mexico or Chile) joins in a free trade area (FTA) with a very large economy (e.g., the United States): what are the possible gains and losses to it? The first part of this paper provides a framework for analyzing this problem. The main theme is that there are three distinct aspects, namely, trade liberalization, trade diversion, and reciprocity. The developing country will be referred to here as the LAC (Latin American country) and the large country as the United States. Finally, the second part of the paper compares regional and multilateral trade liberalization.1

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Cover Trade Policy Issues
Trade Policy Issues
ISBN:
9781557756213
Publication Date:
15 Apr 1997
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557756213.071
Pages:
211