The United States and the New Regionalism/ Bilateralism

Author/Editor:

Yongzheng Yang ; Alvin Hilaire

Publication Date:

October 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2003/206

Subject:

Exports Imports International trade North American Free Trade Agreement Trade liberalization Trading arrangements

Frequency:

Quarterly

English

Publication Date:

October 1, 2003

ISBN/ISSN:

9781451874624/1018-5941

Stock No:

WPIEA2062003

Pages:

26

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