Assessing Proposals for a Transatlantic Free Trade Area

Aussenwirtschaft - The Swiss Review of International Economic Relations, Vol. 57, No. 2, pp. 161-185

25 Pages Posted: 5 Nov 2002  

Rolf J. Langhammer

University of Kiel

Daniel Piazolo

THM Technische Hochschule Mittelhessen

Horst Siebert

Kiel Institute of World Economics; Johns Hopkins University - Bologna Center

Abstract

Initiatives to reduce transatlantic trade barriers or to harmonize trade-related domestic policies in the EU and the US appear regularly on the agenda of policy makers. The last decade saw also considerable steps in transatlantic economic cooperation focusing on special aspects. In February 2002, a new call for a study on the benefits of a transatlantic free trade area (TAFTA) was made by the President of the EU Council to facilitate further liberalization schemes. This article examines recent developments in transatlantic economic policies, discusses changes in approaches in transatlantic regionalism and presents estimates of the economic consequences of transatlantic liberalization. Given the expected small benefits of a TAFTA and the induced costs for multilateral liberalization negotiations, the article discusses alternatives to TAFTA and argues for a multilateral approach, eventually being accompanied by some sort of open regionalism.

Keywords: Free Trade Area, EU-Countries, United States

JEL Classification: F02, F13, F42

Suggested Citation

Langhammer, Rolf J. and Piazolo, Daniel and Siebert, Horst, Assessing Proposals for a Transatlantic Free Trade Area. Aussenwirtschaft - The Swiss Review of International Economic Relations, Vol. 57, No. 2, pp. 161-185. Available at SSRN: https://ssrn.com/abstract=326140 or http://dx.doi.org/10.2139/ssrn.326140

Rolf J. Langhammer

University of Kiel ( email )

Duesternbrooker Weg 120
D-24100 Kiel
Germany
++49.431.8814-203 (Phone)
++49.431.85853 (Fax)

Daniel Piazolo (Contact Author)

THM Technische Hochschule Mittelhessen ( email )

University of Applied Sciences
Wilhelm-Leuschner-Stra├če 13
Friedberg, 61169
Germany

HOME PAGE: http://www.thm.de/wi/fachbereich/team/professoren/profile/10-709-Piazolo

Horst Siebert

Kiel Institute of World Economics ( email )

D-24100 Kiel
Germany
+49 +431 88141 (Phone)
+49 +431 85853 (Fax)

Johns Hopkins University - Bologna Center ( email )

Via Belmeloro 11
40126 Bologna
Italy

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