The economic effects on NAFTA of trans-atlantic free trade agreements

• Sadequl Islam ^[1]
  1. [1] Laurentian University

     Laurentian University

     Canadá

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 11, Nº. 1, 2011, págs. 67-78
• Idioma: inglés
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• Resumen

  • This paper investigates the effects of a bilateral free trade agreement between Canada and the European Union and the effects of a free trade agreement between the European Union and NAFTA on various trade related variables in NAFTA countries, the European Union , and other countries. The paper primarily relies on the Global Trade Analysis Project(GTAP) model and database, version 7. Two policy experiments are considered : 1) Elimination of all tariffs and export subsidies for all goods and services involving Canada and the European Union; and 2) Elimination of all tariffs and export subsidies for all goods and services involving NAFTA countries and the European Union. The main findings are : 1) A Canada-EU free trade deal will increase the economic welfare in Canada and the European Union with adverse effects on other regions, notably the United States and 2) a NAFTA-EU free trade agreement will increase the economic welfare of the United States and the European Union but reduce that of Canada , Mexico and other regions notably, China.