Edited By Gerhard Niedrist
Mexican-European Union Free Trade Agreement: Liberalization Process and Mexican Export Performance
Sergio Ortiz Valdés
In recent years, Regional Trade Agreements (RTAs) have been multiplying and becoming an important trend in world economy (Ghosh C. & Yamarik. 2005). According to WTO, in 1990 only 107 RTAs were registered at the organization and by December 2008, 421 RTAs were notified. Of this number, 90% are partial-scope free trade agreements (FTA) and approximately 10% accounted for customs unions1. This proliferation of RTAs is influenced by the lack of substantial advances in the Doha Round of the World Trade Organization (WTO), given by the complexity processes to negotiate bilateral agreements as opposed to multilateral agreements.
The proliferation of RTAs has led to discussion based on the real impact on trade and well-being effect of these treaties. Robinson and Thierfelder (2003) argue that RTAs have had a positive effect on welfare, besides there is supporting evidence submitted by investigations that showed a dominance of trade creation over trade diversion. In contrast, Bhagwati and Kruger (1995) and Bhagwati and Panagariya (1996) question the efforts to negotiate increasing RTAs, but the real outcomes seem to be uncertain. This argument is consistent with the vision of Economics Nobel Laureate, Joseph Stiglitz who holds that Free Trade Agreements are meant to eliminate tariffs, quotas, restrictions and subsidies, but in reality things are different, and they are affecting some sectors in developing countries that benefit from other countries sectors as well.
In addition, he states that the real consequences in Latin America, are quite...
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