Effect of NAFTA, EUMFTA and China addition to WTO on the cucumber world market

Key words: Cucumber world market, international trade, economic integration, quadratic programming, spatial equilibrium models.Abstract. This study empirically analyzed the potential effects of the complete operation of North American Free Trade Agreement (NAFTA), European Union and Mexico Free Trade Agreement (EUMFTA), and the integration of China to the World Trade Organization (WTO), on the cucumber world market. Special emphasis on the impact on Mexico was presented, from a worldwide perspective. A spatial equilibrium model with endogenous prices was constructed for this purpose. Among the findings are: (1) Mexican producers benefited from the complete implementation of NAFTA and EUMFTA. (2) The incorporation of China as a member of the WTO showed a negligible effect on the commercial flows and prices in the cucumber world market. (3) Mexican cucumber production is highly competitive, in the world market, because it has the lowest supply costs.Palabras Clave: Mercado mundial del pepino, integración económica, comercio internacional, programación cuadrática, modelos de equilibro espacial.Resumen. Este estudio analiza empíricamente los efectos potenciales de la operación completa del Tratado de Libre Comercio de América del Norte (TLCAN), Tratado de Libre Comercio de la Unión Europea y México (UMFTA), y la integración de China a la Organización Mundial de Comercio (OMC) en relación al mercado mundial del pepino. Se presentan, con énfasis especial, los impactos sobre México desde una perspectiva mundial.

Download Full-text

Assessment of the Proposed India-China Free Trade Agreement: A General Equilibrium Approach

Journal of CENTRUM Cathedra (JCC) The Business and Economics Research Journal ◽

10.1108/jcc-08-02-2015-b002 ◽

2015 ◽

Vol 8 (2) ◽

pp. 81-108 ◽

Cited By ~ 3

Author(s):

Rahul Arora ◽

Sarbjit Singh ◽

Somesh K. Mathur

Keyword(s):

General Equilibrium ◽

Free Trade ◽

World Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

Tariff Reduction ◽

Trade Association ◽

Content Type ◽

The World ◽

The Impact

Purpose The present study is an attempt to evaluate the impact of the proposed India-China free trade agreement (FTA) in goods trade on both countries under a static general equilibrium framework. Design/Methodology/Approach The study has utilized the Global Trade Analysis Project (GTAP) model of world trade with the presence of skilled and unskilled unemployment in the world. For analysis purposes, 57 GTAP sectors, representing the whole regional economy, have been aggregated into 43 sectors and 140 GTAP regions, representing the whole world, have been aggregated into 19 regions. The study has also used the updated tariff rates provided by the World Trade Organization for better results. Findings The preliminary analysis using trade indicators depicted that by utilizing their own comparative advantage, both of the countries can maximize their gains by exporting more to the world. The simulation results from the GTAP analysis revealed that a tariff reduction in all goods trade would be more beneficial for both the countries than the tariff reduction in each other's specialized products. All other regions lose in terms of shifting the Indian imports towards China in a post-simulation environment. Regions with a significant loss are: the European Union (28 members), Southeast Asia, the Unites States, Japan, Korea, West Asia, and the European Free Trade Association (EFTA). Originality/Value The disaggregated sector-wise analysis has been performed using the latest available GTAP database, version 9.

Download Full-text

Modelling welfare effects under Pakistan–China free trade agreement

Journal of Chinese Economic and Foreign Trade Studies ◽

10.1108/jcefts-07-2018-0028 ◽

2018 ◽

Vol 11 (3) ◽

pp. 202-218 ◽

Cited By ~ 1

Author(s):

Lubna Uzair ◽

Ahmad Nawaz

Keyword(s):

Trade Policy ◽

Free Trade ◽

Free Trade Agreement ◽

Academic Research ◽

Trade Agreement ◽

Policy Formulation ◽

Trade Creation ◽

Content Type ◽

The World ◽

The Impact

PurposeThis paper aims to empirically examine the trade creation and diversion impacts on merchandise imports of Pakistan under the Pakistan–China Free Trade Agreement (FTA). The analysis of Pakistan’s preferential treatment with its largest trade partner as well as the most substantial exporter of the world will help to shape trade policy, open windows for academic research and also gives an immense contribution in literature.Design/methodology/approachA disaggregated panel data on the imports of Pakistan from China and other WTO member countries and tariff concessions at Harmonized System (HS) two-digit level used for the agreement period of 2006-2012. The empirical analysis takes care of bias through robust and panel-corrected standard errors with time, industry-specific effects and controlling for multilateral trade resistance.FindingsEvidence found in support of trade creation under the Pakistan–China FTA. It means overall this agreement increased the welfare of Pakistani consumers.Practical implicationsFindings are in favour of negotiations and signing for the next round of this agreement and with other major trade partners like the US and Saudi Arabia.Originality/valueIt is worth investigating empirically the impact of preferential trade liberalization between Pakistan – a developing country – and China – the largest importer of the world – explicitly, in the form of trade creation or diversion. The empirical assessment of this FTA signed with the world’s largest exporter will not only contribute immensely to the literature but also help in trade policy formulation and open windows for academic research. Another unique aspect of this study is the use of disaggregated data consisting of all goods imports along with tariff concessions at two-digit Harmonized System (HS) code.

Download Full-text

Bilateral Agreements and Fair Trade Practices: A Policy Analysis of the Colombia-U.S. Free Trade Agreement (2006)

Con-texto ◽

10.18601/01236458.n42.07 ◽

2015 ◽

pp. 77

Author(s):

Kevin J. Fandl

Keyword(s):

Developing Countries ◽

Economic Development ◽

Policy Analysis ◽

Free Trade ◽

Fair Trade ◽

World Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

The World ◽

Bilateral Approach

<p>This article brings to the attention of those public servants involved in the design and negotiation of free trade agreements between the United States and developing countries, such as Colombia, the potential benefits and drawbacks of negotiating in a bilateral forum. Rather than critiquing the free trade agreement for its particular provisions, this article examines the U.S. policy of negotiating bilaterally with developing countries as opposed to multilaterally in the world trade system and what effects such an approach might have on the economic development of the latter. Using an incremental policy analysis, the article critiques the bilateral approach in terms of economic development and fair trade negotiations using the recent Colombia-U.S. trade agreement as a case study. The article concludes that a bilateral approach that is disconnected from a broader multilateral context may be detrimental to developing countries and recommends increased oversight of such agreements by the World Trade Organization to ensure a higher degree of fairness.</p>

Download Full-text

Canons Of Treaty Interpretation: Selected Case Studies From The World Trade Organization And The North American Free Trade Agreement

Treaty Interpretation and the Vienna Convention on the Law of Treaties: 30 Years on ◽

10.1163/ej.9789004181045.i-382.51 ◽

2010 ◽

pp. 153-237 ◽

Cited By ~ 7

Keyword(s):

World Trade Organization ◽

Case Studies ◽

Free Trade ◽

North American ◽

World Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

The North ◽

The World ◽

Treaty Interpretation

Download Full-text

Implicaciones de NAFTA, TLCUEM y de la integración de China a la OMC en el mercado de la berenjena: Una perspectiva de equilibrio espacial

Economía Agraria y Recursos Naturales ◽

10.7201/earn.2009.01.05 ◽

2011 ◽

Vol 9 (1) ◽

pp. 91

Author(s):

Ramón Guajardo ◽

Maricela Ríos

Keyword(s):

Equilibrium Model ◽

World Trade ◽

Trade Diversion ◽

World Market ◽

Free World ◽

Spatial Equilibrium ◽

Spatial Equilibrium Model ◽

Alternative Scenarios ◽

The Impact ◽

Trade Market

This paper studies the impact on the eggplant world market caused by NAFTA, TLCUEM and by the integration of China into the WTO. The impacts were measured as changes on commercial flows and prices. A spatial equilibrium model with endogenous prices was specified and estimated from which alternative scenarios were considered: with and without the operation of these treaties and the incorporation of China into the WTO. The results show that the operation of these treaties results in trade diversion. Furthermore, under the integration of China into the WTO, even under free world trade market there is no impact on the eggplant world market.

Download Full-text

El Consorcio Cooperativo de Comercialización, Costa Rica: frijol.

Agronomía Mesoamericana ◽

10.15517/am.v10i1.19461 ◽

2015 ◽

Vol 10 (1) ◽

pp. 91

Author(s):

Floribeth Mora ◽

Ana Abdelnour ◽

Franklin Herrera ◽

Joaquín Salazar

Keyword(s):

Costa Rica ◽

World Trade Organization ◽

Free Trade ◽

World Trade ◽

Free Trade Agreement ◽

Trade Agreement ◽

Central American ◽

International Level ◽

Cultural Characteristics ◽

The World

The admission of Costa Rica into the World Trade Organization, and the subscription of the Bilateral Free Trade Agreement with Mexico and the agreements with other Central American countries brought about important changes in bean commercialization in Costa Rica. This partly resulted in the creation of CCCRL as an alternative for bean commercialization. Operation and viability of this Consortium are analyzed under the new conditions for the commercialization of agricultural and arming products, both at a national and international level. Agroecological crop conditions are also examined, as well as the socio-economic and cultural characteristics of the population involved in bean production, and their possible influence on CCCRL viability.

Download Full-text

The Free Trade Area of the Americas and the Market for Processed Orange Products

Journal of Agricultural and Applied Economics ◽

10.1017/s1074070800005976 ◽

2003 ◽

Vol 35 (1) ◽

pp. 107-126 ◽

Cited By ~ 4

Author(s):

Thomas H. Spreen ◽

Charlene Brewster ◽

Mark G. Brown

Keyword(s):

United States ◽

Free Trade ◽

Free Trade Area ◽

The United States ◽

Price Impact ◽

Spatial Equilibrium ◽

Trade Area ◽

Spatial Equilibrium Model ◽

The World ◽

The Impact

The proposed Free Trade Area of the Americas would join the world's two largest processed orange producing regions: Brazil and the United States. Because the United States currently imposes a sizeable tariff on imported processed orange products, there is concern by U.S. orange growers over possible adverse effects resulting from tariff elimination. A model of the world processed orange market is developed as a spatial equilibrium model with implicit supply functions based on the dynamic behavior of orange production. The model is used to estimate the impact of U.S. tariff elimination on U.S. production, grower and processor prices, and imports. The results suggest a sizeable price impact on U.S. producers if the tariff is eliminated.

Download Full-text