The new challenges of the regional trade agenda for the Andean countries (original) (raw)
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World Trade Review, 2003
This article evaluates the extent to which the establishment of the Andean Free Trade Zone (AFTZ) has led to an improvement of intra-regional trade, as promised by open regionalism, without reducing extra-regional trade. Open regionalism is a dynamic process in which economic agreements serve as intermediate steps towards integration with the world economy. The calculations of ex post income elasticities of import demand show that the establishment of the AFTZ in 1993 led to an increase in Andean Community trade, and not to a contraction of extra-regional trade. The intensity of trade index and the propensity to export intra-and extra-regionally confirm this finding. The article discusses these results in the context of the multilateral trading system and the trade relations between the Andean Community and the rest of the world.
2020
The Andean Community of Nations (CAN), created in 1969, is a regional trade agreement designed to promote development in member countries via integration. Member countries have also signed extra-regional agreements. Fifty years after the creation of CAN, it is crucial to determine whether intraand extra-regional agreements have played a fundamental role in member countries' trade flows, or whether other factors have significantly influenced these trade flows. This study estimates the augmented gravity model for the period 2000-2017. It found evidence that intraand extra-regional agreements have not played a major role in CAN trade flows.
Integration & Trade, Nº 16, January-June, Vol. 6, pp. 95-156., 2002
The author analyzes the new Latin America regionalism from an international political economy perspective with a particular focus on the Andean Community case study. This comprehensive and flexible approach allows for a diversity of lines of analysis, (from the theoretical perspectives of regionalism, regional institutions, international context and domestic structures). From this standpoint, the author intends to show the way in which two different conceptions of regionalism live together in an integration process such as the Andean Community at the beginning of the Twenty First Century, namely: the "old regionalism". In practice, this coexistence appears to be an obstacle for the Andean countries to define their subregional integration model and to advance to their main goal: the balanced and harmonious development of their member countries.
The Andean Community: Finding Her Feet Within Changing and Challenging Multidimensional Conditions
The Andean Community (AC) is actually immersed in an unprecedented environment of simultaneous deeper sub-regional integration and the gradual implementation of extra-sub-regional commitments and advancing negotiations with other countries and schemes. This frantic and indeed multidimensional process is shaping the character and nature of the AC, challenging its internal cohesion and capacity to manoeuvre within evolving, unpredictable and demanding conditions. Whether she will become stronger, change her nature and composition or simply disappear is something that cannot be foreseen in the near future. However, if the internal changes and the external commitments consequence of the agreements and on going negotiations start to be implemented, the actual economic environment of the Andean Countries would progressively transform and both Andean domestic and Communitarian legal frameworks will need to be adapted accordingly. In order to prevail within these evolving and challenging ci...
2004
An exploratory evaluation of the potential impact of the Free Trade Area of the Americas on the Andean Community is performed through a simulation using GTAP. Hosted by Purdue University, GTAP is a multi-region, applied general equilibrium model widely used to analyze global economic issues. The experiment is performed in a perfect competition, constant returns to scale framework and eliminates tariffs on goods trade between Western Hemisphere countries. The simulation results show modest but positive net welfare gains accruing to the Andean Community, largely due to allocative efficiency gains. Adverse terms of trade effects and trade diversion considerably reduce potential gains. Economic distortions within the Andean Community also have negative effects on welfare. Trade becomes more concentrated in bilateral flows with the United States and real returns on factors of production show improvements.