A CGE analysis of the impact of trade liberalization between the U.S. and Mexico. (computable general equilibrium)(includes appendix): An article from: Atlantic Economic Journal

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From the author: This study examines the effects of free trade between the U.S. and Mexico on the sectoral trade balance of the U.S. The empirical timings indicate that free trade would benefit the overall trade balance of the U.S., but the benefit will be small in the near to medium term for two reasons. First, there is a huge disparity between the economic sizes of the two countries. Second, a sizable share of Mexican exports already enter the U.S. under the Generalized System of Preferences (GSP) or at low rates under maquiladora production-sharing arrangements. The relatively low tariff rates already in effect allow most of the benefits of trade between the U.S. and Mexico to be realized and therefore limit the potential benefits to the U.S. from free trade (JEL F15).

Citation Details
Title: A CGE analysis of the impact of trade liberalization between the U.S. and Mexico. (computable general equilibrium)(includes appendix)
Author: Khosrow Doroodian
Publication:Atlantic Economic Journal (Refereed)
Date: December 1, 1994
Publisher: Atlantic Economic Society
Volume: v22 Issue: n4 Page: p43(12)

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