Preferential Trading Arrangements in Western Hemisphere Countries

Abstract

Many countries of the Western Hemisphere in recent years have shown interest in participating in preferential trading arrangements (PTA) in anticipation of expanding exports. Results in this paper show that export expansion depends upon the type of agreement that is formed and who else is participating. Trade of two agricultural commodities are examined; wheat, and fruit and vegetable juices. Five PTAs are examined, each including the United States and one or more Western Hemisphere countries.

Central America Free Trade Agreement (CAFTA) and the Rural Economies of Central America: A Conceptual Framework for Policy and Program Recommendations

“…These include Krissoff et al (1991) and Krissoff, Neff and Sharples (1992), reported in Josling (1992).…”

“…Specifically, fruit and vegetable producers were expected to benefit due to NAFTA while staple crop producers (especially of corn) would suffer losses as a result of lower prices for their crops. 10 The results from a study by Krissoff, Neff and Sharples (1992;cited in Josling, 1992) using a partial equilibrium multi-market model are reported in Table III-1. Their model predicted that a trade agreement, along with unilateral Mexican trade liberalization, increases total agricultural exports by $178 million, with an increased $160 million going to the U.S.…”