Quantifying a Canada-China Free Trade Agreement

38 Pages Posted: 22 Jan 2016 Last revised: 23 Jan 2016

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; Centre for International Governance Innovation (CIGI); C.D. Howe Institute; Asia Pacific Foundation of Canada; BKP Development Research & Consulting GmbH

Ali Dadkhah

Ciuriak Consulting Inc.; Infinity Law

Jingliang Xiao

Infinite-Sum Modeling Inc.; Ciuriak Consulting Inc.

Date Written: January 19, 2016

Abstract

The possibility of a Canada-China Free Trade Agreement has been under discussion for some time. China has reportedly offered to negotiate an FTA with Canada, although this has not been officially confirmed by the Canadian Government. A tentative step towards a negotiation was taken in the 2012 Canada-China Complementarities Study. This note seeks to quantify the impact of such an agreement on Canada and China. We deploy a dynamic computable general equilibrium model that incorporates foreign direct investment and develop a realistic scenario based on the recently concluded China-Australia FTA. We find the main gains from a Canada-China FTA would come from tariff reductions and the binding of services commitments.

Keywords: Canada, China, FTA, CGE

JEL Classification: F13

Suggested Citation

Ciuriak, Dan and Dadkhah, Ali and Xiao, Jingliang, Quantifying a Canada-China Free Trade Agreement (January 19, 2016). Available at SSRN: https://ssrn.com/abstract=2720074 or http://dx.doi.org/10.2139/ssrn.2720074

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Asia Pacific Foundation of Canada ( email )

Canada

HOME PAGE: http://ciuriakconsulting.com/

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
M√ľnchen, 80639
Germany

Ali Dadkhah

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

Infinity Law ( email )

200-931 Fort St.
Victoria, V8V 3K3
Canada

Jingliang Xiao

Infinite-Sum Modeling Inc. ( email )

16167,Glenbrooks Pl
Vancouver, BC - British Columbia v4n1t3
Canada
6047245981 (Phone)
6047245981 (Fax)

HOME PAGE: http://www.infsum.com/en/

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

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