The Trade Effects of Regional Agreements and Economic Integration Processes in Europe, South America, and North America

Abstract

This article seeks to understand the effects of trade creation and diversion in regional agreements and integration processes in Europe, South America, and North America. Through a systemic literature review, and based on the economic theory of integration, it analyzes the impact of tariff barriers on trading volume through the world, as well as the impact of barriers removals in member and non-member countries that participate in these trade agreements. As hypothesis, it can be stated that the trade effects generated by economic integration processes vary depending on the endogenous conditions of the industries in member countries, in addition to the consolidation phase of the integration processes. For this purpose, a qualitative descriptive methodology, based on an analysis of literature, is used to determine the trade creation and deviation effects of agreements in Europe (European Union), South America (MERCOSUR and CAN), and North America (NAFTA).

Estimation of Economic Welfare Gains from Trade Facilitation in the Andean Community

“…The main reason for this difference is that Doing Business reports the trade costs for a land border crossing for Bolivia and Ecuador, where the former is a landlocked nation [15]. Sources: [1][2][3][4] , reported by Doing Business Report [15]; [5][6][7] , authors' calculations. Notes: Column 5 is calculated using Equation (1).…”

“…However, excluding Bolivian trade for both exports and imports and excluding crude oil, copper ore, and petroleum gas from the total trade volumes allows us to focus solely on sea border trade for the CAN countries. Sources: [1][2][3][4] , reported by Doing Business Report [15]; [5][6][7] , authors' calculations. Notes: Column 5 is calculated using Equation (1).…”

“…Over the past three decades, there has been a series of trade reforms in the Americas that concentrated on harmonizing and reducing tariffs. Various regional groupings have been formed to promote such policies, such as Mercosur (Argentina, Brazil, Paraguay, and Uruguay) in 1994, NAFTA (US, Mexico, and Canada) in 1994, and the Andean Community (Bolivia, Colombia, Ecuador, and Peru) in 1996 [1]. With the reduction of import tariff rates, the attention has shifted to other impediments to international trade that exist in countries concerning the management of their international trade flows.…”

Механізми Активізування Міжнародних Економічних Відносин

“…Дослідження Maggi G., Ossa R. [3], Lopez O. D., Carvajal A. [4] присвячені угодам про вільну торгівлю та економічної інтеграції, включаючи їх вплив на торгівлю, економічний розвиток та міжнародні відносини. Праці Jensen Nathan M. [5], Harding Torfinn, Javorcik B.…”