Topics for further
investigation
From the summing up of all the elements that
enter into an evaluation of RTAs, the only way to assess RTAs is to Participants
are encouraged to make presentations and share their concerns in the areas
they are working in. To give enough time for presentations and discussions,
depending on interests and volunteers, 2 to 3 presentations could be schedules
in the 1:30 hours.. Each presentation would last 15-20 minute presentation
(preferably PPT or overhead projector slides) and would be followed by a
10-15 minute discussion.
Following are readings (all on the CD-ROM)
that should be sufficient for presentations for the four topics suggested,
should participants not have any topic they would wish to discuss with the
group.
Topic 1. Rules of origin
(RoO)
RoO are part of all PTAs less than a
CU, and also for the GSP. Describe the different types used by the main criteria
used to define origin, how these are used among the main trading blocs, what
their effects on trade flows are, and how political economy matters enter
into the decision process for establishing the criteria. Suggest criteria
for RoO that would minimize their costs.
Background materials:
- Anson, J., Cadot, O., A. Estevadeordal, J.
de Melo, A. Suwa-Eisenmann, and B. Tumurchudur, 2003, “Assessing the
Costs of RoO in North-South PTAS with an application to NAFTA” (NS_ROO_RIE1.pdf)
- Brenton, P., 2003, “Integrating the Least Developed
Countries into the World Trading System: The Current Impact of EU Preferences
under Everything But Arms” (Brenton03.pdf)
- Brenton, P., and M. Manchin, 2003, “Making EU
Trade Agreements Work: The Role of Rules of Origin”, (Brenton_Manchin02.pdf)
- Carrère and de Melo, 2004, “Are Different
Rules of Origin Equally Costly? Estimates from NAFTA » (ROO-CdM04.pdf)
- Estevadeordal and Suominen, 2003, “Rules
of Origin: A World Map and Trade Effects” (Estevadeordal_Soumin2003.pdf)
- Flatters, F., and R. Kirk, 2003, “Rules of
Origin as Tools of Development: Lessons from SADC” (Flatters_Kirk2003.pdf)
- Krishna, K. (2003), “Understanding Rules of
Origin” (Krishna03.pdf)
Topic 2. REPAs.
The REPAs in negotiation by the EU with ACP
countries are to replace the traditional one-way preferential agreements
under the Lomé conventions. Draw an ex-ante assessment of the likely
costs and benefits from the standpoint of the ACPs.
Background materials:
- Cadot, de Melo and Olarreaga, 1999, “Asymetric
Regionalism In Sub-Saharan Africa: Where Do We Stand?” (ABCDE.pdf)
- Schiff, “Regional Integration and Development
in Small States”, (REPA_Schiff.pdf)
- Hinkle and Schiff, 2004, “Economic Partnership
Agreements between SSA and the EU: A Development Perspective on their Trade
Components” (EU_SSA_EPA.pdf)
De la Rocha, M. 2003. “The Cotonou Agreement
and its Implications for the Regional Trade Agenda in Eastern and Southern
Africa.” World Bank Policy Research Working Paper 3090. World Bank. Washington,
D.C. (June) (delaRocha03.pdf)
Case study
1. NAFTA.
NAFTA is often taken as a “typical”
N-S RTA. The ten year anniversary has just been celebrated. What are the main
conclusions drawn from the experience. Have ex-post results been in line
with ex-ante predictions?
Background materials:
Fernández, Raquel, 1997, “Returns
to Regionalism: An Evaluation of Non-Traditional Gains from RTAs” (Fernandez97.pdf)
Hanson, 2003, “What Has Happened to Wages in
Mexico since NAFTA? Implications for Hemispheric Free Trade” NBER Working
Paper No. 9563 (Hanson03.pdf)
Krueger, Anne O., 1999. “Trade Creation and
Trade Diversion Under NAFTA”, NBER Working Paper No. 7429 (Krueger99.pdf)
Michaely, 1996, “Trade Preferential Agreements
in Latin America: An Ex-Ante Assessment” (Michaely96.pdf)
MERCOSUR has been hailed as an example
of the best of what one could expect of a S-S PTA since it goes beyond the
usual objectives of reaching an FTA. Describe the process, the difficulties
encountered in meeting deadlines, and some of the “non-traditional” benefits
expected from the agreement. Draw a broad evaluation of progress so far,
and propects for the future (FTAA, FTA with the EU, etc)
Background materials:
- Alexander J. Yeats, 1997, “Does Mercosur’s Trade
Performance Raise Concerns About the Effects of Regional Trade Arrangements?”
(WPS1729) (Yeats97.pdf)
- Azita Amjadi and L. Alan Winters, 1997, “Transport
Costs and ‘Natural’ Integration in Mercosur” (Amjadi_Winters97.pdf)
- Olarreaga, Soloaga and Winters, 1999,
“What’s behind Mercosur’s Common External Tariff?” (Mercosur_Olarreaga.pdf)
- Soloaga and Winters, “Regionalism in
the Nineties: What Effect on Trade?” (Soloaga_99.pdf)