Cernat, Lucian and Onguglo, Bonapas and Ito, Taisuke (2007): RTAs and WTO compatibility: Catch me if you can? The case of EPA negotiations.
Download (119Kb) | Preview
There is an ongoing debate about best ways to assess the compatibility of RTAs with WTO rules and the possible negative impact that the proliferation of RTA formation may have on individual members and on the stability of the multilateral trading system as a whole. Therefore, rules defining the WTO compatibility of RTAs are one of the issues under in the WTO Doha negotiations. Taking the current EPA negotiations between ACP and EU as an example, this paper examines two sorts of questions: (i) the implications for developing country members of the current proposals to tighten the rules on WTO compatibility of RTAs; (ii) the impact that the proliferation of RTA formation may have on non-RTA members and on the stability of the multilateral trading system as a whole. More specifically, the paper assesses quantitatively using a partial equilibrium framework the implications for ACP countries of some of the proposals to reform GATT Art. XXIV, in particular the “substantially all trade” criteria. Based on a CGE approach, the paper then looks at the implications of EPA negotiations on third countries and its linkages with the ongoing Doha negotiations, in particular on how the future EPA agreements could be non-trade diverting, in line with Ohyama-Panagariya-Krishna version of the Kemp-Wan theorem.
|Item Type:||MPRA Paper|
|Original Title:||RTAs and WTO compatibility: Catch me if you can? The case of EPA negotiations|
|Keywords:||ACP; EPA; Kemp-Wan; partial equilibrium analysis; CGE; GATT Art XXIV|
|Subjects:||F - International Economics > F1 - Trade > F17 - Trade Forecasting and Simulation
F - International Economics > F1 - Trade > F13 - Trade Policy; International Trade Organizations
F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F1 - Trade
|Depositing User:||Lucian Cernat|
|Date Deposited:||20. Jun 2007|
|Last Modified:||12. Feb 2013 22:33|
Bond E., Riezman R. and Syropoulos C. (2004) “A Strategic and Welfare Theoretical Analysis of Free Trade Areas”, Journal of International Economics, 64:1-27.
Gilbert, J. and Wahl, T. (2001) “Assessing China's Potential Role in Asia's New Regionalism”, Paper presented at the Conference “Agricultural Trade with China in the New Economic and Policy Environment”, Sonoma, California, April 2001.
Hammouda, H. B. and Osakwe, P. (2006) “Global Trade Models and Economic Policy Analyses: Relevance, Risks and Repercussions for Africa”, ATPC Work in Progress No. 47, Economic Commission for Africa, December.
Hertel, T. (1997) Global Trade Analysis: Modeling and Applications, Cambridge: Cambridge University Press.
Julian, M. (2001) “The Cotonou Waiver: An Unlikely Doha Deal Maker”, Bridges: Between Trade and Sustainable Development, Year 5 No. 9, November/December, pp. 15-16. Available at http://www.ictsd.org/monthly/bridges/BRIDGES5-9.pdf
Kemp, M.C. and H. Wan (1976) “An elementary proposition concerning the formation of customs unions”, Journal of International Economics, 6: 95-8.
Laird, S. and Yeats, A. (1986) The UNCTAD Trade Policy Simulation Model: A note on the methodology, data and uses, United Nations: Geneva.
McMillan, J. (1993), “Does Regional Integration Foster Open Trade? Economic Theory and GATT’s Article XXIV” in Anderson, K. and R. Blackhurst (eds.) Regional Integration and the Global Trading System London: Harvester-Wheatsheaf.
Onguglo, B. and Ito, T. (2003) "How to Make EPAs WTO Compatible? Reforming the Rules on Regional Trade Agreements", ECDPM Discussion Paper no.40, July 2003.
Panagariya, A. and P. Krishna (1997) "On the Existence of Necessarily Welfare-Enhancing Free Trade Areas", Working Paper No.32, Center for International Economics, University of Maryland.
Pomfret, R.W.T. (2002), "State-Directed Diffusion of Technology: The Mechanization of Cotton-Harvesting in Soviet Central Asia", Journal of Economic History , Volume 62, Issue 01. March 2002. pp170-188.
Stevens, C. and J. Kennan (2005) “Preparing for Economic Partnership Agreements: Trade Analysis Handbook”, Institute of Development Studies, University of Sussex, Brighton.
Waschik, R. (2005) “Trade Creation, Trade Diversion, and Non-Members of Free Trade Areas La Trobe University, Victoria, Australia, May, mimeo.
Waschik, R. (2006) “Modelling Kemp-Vanek Admissibility: The Effects of Free Trade Areas on Non-Members”, La Trobe University, Victoria, Australia, May, mimeo.