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SAFTA: Living in a World of Regional Trade Agreements

Author/Editor: Rodríguez-Delgado, Jose Daniel
Authorized for Distribution: February 1, 2007
Electronic Access: Free Full Text (PDF file size is 510KB)
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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: The paper evaluates the South Asia Free Trade Agreement (SAFTA) within the global structure of overlapping regional trade agreements (RTAs) using a modified gravity equation. First, it examines the effects of the Trade Liberalization Program which started in 2006. SAFTA would have a minor effect on regional trade flows and the impact on custom duties would be a manageable fiscal shock for most members. Second, the paper ranks the trade effects of other potential RTAs for individual South Asian countries and SAFTA: RTAs with North American Free Trade Agreement (NAFTA) and the European Union (EU) dominate one with the Association of South East Asian Nations (ASEAN).
 
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Series: Working Paper No. 07/23
Subject(s): International trade agreements | Asia | Trade liberalization | Economic models
Author's keyword(s): SAFTA | RTAs | trade liberaliztion | South Asia
 
English  
    Published:   February 1, 2007        
    ISBN/ISSN:   1934-7073   Format:   Paper
    Stock No:   WPIEA2007023   Pages:   25
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
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