Safta: Living in a World of Regional Trade Agreements

27 Pages Posted: 7 Feb 2007

Date Written: February 2007

Abstract

The paper evaluates the South Asia Free Trade Agreement (SAFTA) within the global structure of overlapping regional trade agreements (RTAs) using a modified gravity equation. First, it examines the effects of the Trade Liberalization Program which started in 2006. SAFTA would have a minor effect on regional trade flows and the impact on custom duties would be a manageable fiscal shock for most members. Second, the paper ranks the trade effects of other potential RTAs for individual South Asian countries and SAFTA: RTAs with North American Free Trade Agreement (NAFTA) and the European Union (EU) dominate one with the Association of South East Asian Nations (ASEAN).

JEL Classification: F13, F15

Suggested Citation

Rodriguez-Delgado, Jose Daniel, Safta: Living in a World of Regional Trade Agreements (February 2007). IMF Working Paper No. 07/23, Available at SSRN: https://ssrn.com/abstract=961753

Jose Daniel Rodriguez-Delgado (Contact Author)

IMF Institute ( email )

700 19 th Street NW
Washington, DC 20431
United States

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