Economic Implications of an Association Agreement between the European Union and Central America

Luis Rivera and Hugo Rojas-Romagosa

No 331783, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: Using a global CGE model, we assess the potential macro-economic effects of a future European Union - Central American Association Agreement (EU-CAAA). Currently, many agricultural products from Central America (CA) enter duty-free to the European Union (EU); with two notable exceptions: bananas and sugar. We find that liberalizing the access to both products will bring significant gains to CA, while excluding them from the negotiations will bring no static gains. If trade facilitation mechanisms are implemented and we allow for the expected increase in FDI inflows to CA, welfare gains improve for all scenarios but are conditions on the level of EU agricultural liberalization.

Keywords: International Relations/Trade; International Development (search for similar items in EconPapers)
Pages: 28
Date: 2008
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https://ageconsearch.umn.edu/record/331783/files/3714.pdf (application/pdf)

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Working Paper: Economic Implications of an Association Agreement between the European Union and Central America (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331783

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