Regional Trade Agreements Blessing Or Burden

In 2009, she published with Emanuel Ornelas a bibliographic review (entitled “Regional Trade Agreements”) on theoretical and empirical research on regional trade agreements (RTAs), which has been the most widespread form of trade liberalization since the mid-1990s. The review examines three issues related to SAAs, both theoretically and empirically: an increase in trade diversion due to government lobbying by groups to create trade agreements with significant distortions, a slowdown or contraction in foreign trade liberalization, and a weakening of a multilateral approach. Freund and his co-author believe that, theoretically, all three questions are defensible. [5] However, from an empirical point of view, they find that there is no increase in trade diversion or a slowdown in external liberalization and that it is not yet possible to properly measure the weakening of multilateralism. [5] There are theoretical arguments that support the primacy of the creation and reorientation of trade in similar circumstances. The dominant effect is therefore an empirical question. Unfortunately, estimating the creation and reorientation of trade is not an easy task – it requires knowledge of the counterfactual facts, that is, what would have happened to trade if there had been no trade agreement. As this is not the case, assumptions must be made. There are also arguments that the opposite may be the case. A simple argument is that negotiating SAAs helps officials develop the expertise needed to implement international trade agreements, which could be useful in subsequent WTO negotiations. In addition, ASAs also destroy rents in some parts of the economy.

If the tenants who lose with the RTAs are the ones who slow down the multilateral talks, then the RTAs can effectively give a boost to the multilateral negotiations. As Baldwin (1994) says, liberalization (regional or multilateral) leads to greater liberalization. Tags: regionalism, multilateralism, regional trade agreements In 2008, she wrote with Antoni Estevadeordal and Emanuel Ornelas a paper entitled “Does Regionalism Affect Trade Liberalization Towards Non-Members”, which examines the impact of regionalism on unilateral trade liberalization (the elimination of a country`s own trade barriers and restrictions) using data for ten Latin American countries from 1990 to 2001. The document notes that although preferential duties (lower import duties for countries participating in a bilateral trade agreement than for countries that are not part of the agreement) for a sector and the common external law of that sector are positively linked, this relationship does not occur in customs unions where a common external law is to be applied. [4] Therefore, Freund and his co-authors conclude that the allegations that the liberalization of preferential duties has a negative effect on the liberalization of external rights are not legitimate. [4] In 2004, she published with Matias Berthelon a work entitled “On the conservation of distance in international trade”) on increasing the impact of distance on international trade (as dictated by the trade gravity model), although trade volume has grown more than twice as fast as real income since 1980. Two possible explanations for this observation are as follows: countries trade with a greater amount of distance-sensitive goods, and this distance has become more important for a larger proportion of the goods traded. . . .