Download or read book What s Behind Mercosur s Common External Tariff written by Marcelo Olarreaga and published by World Bank Publications. This book was released on 1999 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Most researchers focus on the political economy (interest group pressures) approach to analyzing why customs unions are formed, but terms-of-trade effects were also important in formation of the common market of the Southern Cone (Mercosur). Terms-of-trade externalities among Mercosur's members have been internalized in the common external tariff--Cover.
Download or read book What s Behind Mercosur s Common External Tariff written by Marcelo Olarreaga and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most researchers focus on the political economy (interest group pressures) approach to analyzing why customs unions are formed, but terms-of-trade effects were also important in formation of the Common Market of the Southern Cone (Mercosur). Terms-of-trade externalities among Mercosur's members have been internalized in the common external tariff. The theoretical literature on trade follows two different approaches to explaining the endogenous formation of customs unions: (1) The terms-of-trade approach, in which integrating partners are willing to exploit terms-of-trade effects. Using the terms-of-trade approach, one concludes that tariffs on imports from the rest of the world should increase after the formation of a regional bloc, because the market power of the region increases and terms-of-trade externalities can be internalized in the custom union's common external tariff. As the union forms, the domestic market gets larger and members' international market power increases. (2) The interest group pressures (political economy) approach, in which, for example, the customs union may offer the potential for exchanging markets or protection within the enlarged market. Using this approach, one would usually conclude that tariffs for the rest of the world decline after the custom union`s formation - a rationale related to free-rider effects in larger lobbying groups. It is important to recognize the forces behind the formation of customs unions. Most researchers have focused on the second approach and neglected terms of trade as a possible explanatory variable. Both rationales explain a significant share of tariff information. Results, write Olarreaga, Soloaga, and Winters, suggest that both forces were important in formation of the Common Market of the Southern Cone (Mercosur). Terms-of-trade effects account for between 6 percent and 28 percent of the explained variation in the structure of protection. There is also evidence that the terms-of-trade externalities among Mercosur's members have been internalized in the common external tariff. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to understand the political economy of trade protection.
Download or read book Latin America written by P. Coffey and published by Springer Science & Business Media. This book was released on 2013-12-01 with total page 358 pages. Available in PDF, EPUB and Kindle. Book excerpt: Latin America's experience with regional economic integration has been only slightly shorter than that of Europe. In fact, the first attempt at integration started as early as 1960, with the creation of LAFTA - the Latin American Free Trade Area (subsequently replaced by LAIA - the Latin American Integration Association). LAFTA, composed of 11 countries, sought, unsuccessfully, to create a free trade area in 12 years. In 1969, the Andean pact, which sought, also unsuccessfully, to create a sub-regional free trade area, was set up. Recently the Presidents of Argentina, Brazil, Paraguay and Uruguay signed the Treaty of Asuncion aimed at creating a common market as from 1st January, 1995. This common market, MERCOSUR, will be completed by 2006. In comparison with the earlier and unsuccessful attempts at integration, and despite challenges and problems, both internal and external, MERCOSUR is working, and trade between the member States is increasing. Furthermore, as with the case of the European Union (EU), serious attempts (notably between Argentina and Brazil) are being made to co-ordinate economic and monetary policies. The most important evidence of these moves is the introduction of hard currencies, the reduction in the size of the public sector and the privatization of State assets. These are clearly exciting times for Latin American integration. In this book, the first in a new series of books on International Economic Integration, the authors examine the experience of MERCOSUR in the Latin American integration progress. After an analysis of the history of the moves towards integration in South America, the case of each Member State and the Associate Country is examined and perspectives for the future are assessed.
Download or read book 25 Years of MERCOSUR A successful Example of Regional Integration written by Sabrina Schleimer and published by GRIN Verlag. This book was released on 2017-06-27 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2017 in the subject Economics - International Economic Relations, grade: 1,3, Berlin School of Economics and Law, language: English, abstract: The following extended term paper will analyse MERCOSUR and examine whether it can be regarded as a successful example of regional integration. To do so, the paper will review the objectives set in the founding treaty, the Treaty of Asunción, and analyse whether they have been fully met. At a glance, the objectives of MERCOSUR were to “eliminate trade barriers, establish a common external tariff, coordinate macroeconomic policies and develop the harmonization of laws” (Arieti, 2006, p. 764). To fulfil these objectives, the development of MERCOSUR was supposed to go through three gradual stages: the first goal was to create a free trade area, this was to be followed by a customs union, and the third and final aim was the creation of a common market. These stages will be analysed to conclude if they have been reached. At the same time, the main achievements and challenges of MERCOSUR’s integration experience will be presented. The limited scope of this term paper does not allow for an analysis of every aspect in great detail. Due to this, the main focus after the theoretical section will be on the area of trade and on the earlier stages of the agreement, as this is most important to establish the success of MERCOSUR as a regional trade agreement and thus highly relevant to find an answer to the research question. In the era of globalisation, international markets have continued to grow in importance. Many regional economic integration agreements have been negotiated and created to improve competitiveness in global trade. One of these regional agreements is the ‘Mercado Común del Sur’ (MERCOSUR), in English ‘Common Market of the Southern Cone’, which was founded by Argentina, Brazil, Paraguay and Uruguay in 1991. Its creation was expected to mark an economic transition of the region as “the conditions for economic expansion were viewed as highly favourable” (ASEAN Studies Centre, 2009, p. 10). 2016 marks the 25th anniversary of MERCOSUR and the regional trade agreement has grown to a significant size over the past years. It is the largest integration agreement in Latin America and the Caribbean, the fourth largest in the world and the fifth biggest economy in the world (MERCOSUR, 2017b). It encompasses around 260 million citizens and had a combined GDP of more than 2.8 trillion USD in 2015 (Campbell, 2015).
Download or read book How Regional Blocs Affect Excluded Countries written by Won Chang and published by World Bank Publications. This book was released on 1999 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: Price data on exports to Brazil from countries excluded from MERCOSUR show that preferential trading agreements hurt nonmember countries by compelling them to reduce their prices to meet competition from suppliers within the regional trading bloc.
Download or read book Can Duty drawbacks Have Protectionist Bias written by Olivier Cadot and published by World Bank Publications. This book was released on 2001 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evidence from Mercosur suggests that eliminating duty drawbacks for intra-regional exports would lead to increased counterlobbying against protection of intermediate products. Without the duty drawback, the common external tariff would have been an estimated 3.5 percentage points (25 percent) higher on average.
Download or read book Impacts of the MERCOSUR Agreement on the Uruguayan Economy written by Beatriz Legorburu and published by . This book was released on 1994 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the MERCOSUR agreement (Common Market of the Southern Cone), specifically the provision for a common external tariff and its impact on the economy of Uruguay. The thesis begins by examining the economic regionalism which gives rise to trade agreements such as MERCOSUR and investigates the trade mechanisms through which such regionalism is accomplished. The provisions and background of the MERCOSUR agreement are explored, as well as the economic conditions, current and historical, which exist in the participant countries. The work continues by exploring two possibilities for Uruguay: (1) to continue economic integration by entering a customs union scheduled to take effect on January 1995 or (2) to remain in a free trade zone with the other three countries (Argentina, Brazil and Paraguay). These two possibilities are analyzed using traditional and new theories of international trade. The study further examines foreign direct investment and technology in the context of Uruguayan participation in MERCOSUR or in a free trade zone. The study concludes that if Uruguay, due to its small size, could obtain the special treatment of a free trade zone, the costs of trade diversion would be reduced and Uruguayan welfare would increase.
Download or read book Regional Integration in Latin America written by Anna Hallberg and published by . This book was released on 2000 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mercosur written by Honorio Kume and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first half of 2001, the government of Argentina undertook some changes in the import tariffs of some products, eroding the Common External Tariff (CET) of Mercosur. In particular, the tariff rates of capital goods were reduced to zero, an action with potential negative implications for the Brazilian industry of such goods. In this paper the authors address two problems. First, in the case of the maintenance of the custom union they examine the best structures for the CET, such that the different interests related to competitiveness and economic growth in the four member countries could be reconciled. If such agreement is not reached, the authors then consider the case of Mercosur being transformed into a free trade zone. This would probably reinforce the requisites of regional content in the products exchanged and the negative effects of trade diversion could be enhanced.
Download or read book In Search of a Common Market in the Southern Cone of Latin America written by Gladys Stella Benegas Cristaldo and published by . This book was released on 1992 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Trade Creation and Trade Diversion written by Ann Bartholomew and published by . This book was released on 2002 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Chile s Regional Arrangements and the Free Trade Agreement of the Americas written by Glenn W. Harrison and published by World Bank Publications. This book was released on 2001 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: July 2001 - Among Chile's bilateral regional agreements, only Chile's agreements with "Northern" partners provide enough market access to offset the costs to Chile of trade diversion. Because of preferential market access, however, "additive regionalism" is likely to provide Chile with far more gains than the static welfare gains from unilateral free trade. At least one partner country loses from each of the regional trade agreements considered in this study, and excluded countries always lose. The Free Trade Agreement of the Americas (FTAA) produces gains for almost all the member countries, but the European Union is a big loser. Countries of the Americas gain more in aggregate from global free trade than from the FTAA. Using a multisector, multicountry, computable general equilibrium model, Harrison, Rutherford, and Tarr examine Chile's strategy of negotiating bilateral free trade agreements with all of its significant trading partners (referring to this policy as additive regionalism). They also evaluate the Free Trade Agreement of the Americas (FTAA) and global free trade. Among Chile's bilateral regional agreements, only Chile's agreements with "Northern" partners provide enough market access to offset the costs to Chile of trade diversion. Because of preferential market access, however, additive regionalism is likely to provide Chile with many times as many gains as the static welfare gains from unilateral free trade. Harrison, Rutherford, and Tarr find that at least one partner country loses from each of the regional trade agreements they consider, and excluded countries as a group always lose. They estimate that the FTAA produces large welfare gains for the members, with the European Union being the big loser. Gains to the world from global free trade are estimated to be at least 36 times greater than gains from the FTAA. Even countries of the Americas in aggregate gain more from global free trade than from the FTAA. This paper--a product of Trade, Development Research Group--is part of a larger effort in the group to examine the impact of regional trade arrangements on development and poverty reduction. David Tarr may be contacted at [email protected].
Download or read book Endogenous Tariff Formation written by Marcelo Olarreaga and published by . This book was released on 1998 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Institutional Issues and the Results of the Tariff and Non tariff Liberalization in Mercosur written by B. Paglieri and published by . This book was released on 2000 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book MERCOSUR written by Sonia A. M. Viejobueno and published by . This book was released on 1995 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book MERCOSUR and Beyond written by Masaaki Kotabe and published by . This book was released on 1996 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Integrating the Americas written by University of Miami. North-South Center and published by New Brunswick, U.S.A. : Transaction Publishers. This book was released on 1994 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bold new economic policies are supplanting traditional notions about the relationship between national and international markets throughout Latin America. Regional integration and neoliberal reforms have combined to overturn more traditional approaches to national development in the region. This volume captures the content of these changes and analyzes their implications for the Western Hemisphere.
