Safta: Living in a World of Regional Trade Agreements
February 1, 2007
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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).
Subject: Imports, International trade, North American Free Trade Agreement, Tariffs, Taxes, Trade balance, Trade barriers
Keywords: Imports, India-Sri Lanka FTA, North American Free Trade Agreement, RTAs, SAFTA, SAFTA member, SAFTA tariff, SAFTA trade effect, SAFTA vis-à-vis, South Asia, Tariffs, Trade balance, Trade barriers, trade creation, trade diversion, Trade Liberalization, WP
Pages:
25
Volume:
2007
DOI:
Issue:
023
Series:
Working Paper No. 2007/023
Stock No:
WPIEA2007023
ISBN:
9781451865875
ISSN:
1018-5941
