The EU-Mercosul free trade agreement: Quantifying mutual gains

German Calfat and Renato Flôres Junior

No 575, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: We identify trade in goods opportunities in a EU-Mercosul free trade area. Gains for Mercosul are rather concentrated, being mostly associated to a few agricultural commodities nowadays facing high protection barriers. EU gains are evenly spread, comprising a variety of market penetration possibilities. Trade deviation by the EU products is never higher than trade creation, confirming their international competitiveness and signalling that a great distortion of Mercosul’s imports won’t take place. Balanced gains exist for both sides; for Mercosul, the agreement can act as a first serious trial for future liberalisations with other developed partners, and as a warning on needed competitiveness improvements.

Date: 2004-12-01
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Citations: View citations in EconPapers (8)

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Journal Article: The EU‐Mercosol Free Trade Agreement: Quantifying Mutual Gains* (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgewp:575

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