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Is China a Northern Partner to Mercosul?

Renato Flôres Junior and Masakazu Watanuki

No 617, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: We contrast Free Trade Areas involving Mercosul and the EU25, the US and China, respectively, using a new CGE model and associated database. Roughly, the China FTA lies halfway the other two, a bias towards the US pattern being suggested. When considering China a new Northern partner, protective deals don’t seem advisable. China’s advantages should prevail when facing the US or the EU: its need of capital goods, for instance, may open profitable cross-exchanges. China’s emergence can be a positive factor, if placed in an enlarged policy space where, together with its Asian neighbours, it counter-balances the US-EU polarity.

Date: 2006-06-01
New Economics Papers: this item is included in nep-cna, nep-sea and nep-tra
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Citations: View citations in EconPapers (8)

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