The United States and the New Regionalism/ Bilateralism

Yongzheng Yang and Alvin Hilaire

No 2003/206, IMF Working Papers from International Monetary Fund

Abstract: Current U.S. trade policy stresses establishing free trade areas (FTAs) with partners spanning the globe. Motivations include enhancing goods and services trade; stimulating investment flows; extending standards on intellectual property rights, labor, and the environment; and addressing geopolitical concerns. Simulations of FTAs with the United States highlight the importance of trade complementarity, trade diversion, and welfare losses for nonmembers. Agriculture and textiles play a central role in determining welfare outcomes. Initial improvement in market access enjoyed by participants could be eroded progressively as global liberalization proceeds, and this preference erosion might act as a disincentive to participate in multilateral liberalization.

Keywords: WP; trade diversion; trade; Chile; liberalization; Australia; integration; regionalism; free trade; global trade analysis; United States; United States-CAFTA; U.S. FTAs; leadership role; United States-Australia; US.-Austraha FTA; trade creation; United States-Chile; Chile-Japan FTA; exports of goods; U.S. trade policy; U.S. export; Trade liberalization; Exports; Imports; Trading arrangements; North American Free Trade Agreement; Central America; Global; Asia and Pacific; Middle East; Southern Africa (search for similar items in EconPapers)
Pages: 26
Date: 2003-10-01
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Citations: View citations in EconPapers (8)

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