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Feasibility study of a MERCOSUR-Korea free trade agreement : Impact analysis for Argentina

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  • Feasibility study of a MERCOSUR-Korea free trade agreement
  • Cicowiez, Martín; D’Elía, Carlos; Galperín, Carlos et al.
  • Comercio Exterior e Integración


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Title Feasibility study of a MERCOSUR-Korea free trade agreement
Similar Titles
Sub Title

Impact analysis for Argentina

Material Type Reports
Author(English)

Cicowiez, Martín; D’Elía, Carlos; Galperín, Carlos et al.

Publisher

[Buenos Aires]:Comercio Exterior e Integración

Date 2008-08
Series Title; No Revista del CEI / Issue 12
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Trade
Economy < Economic Administration
Economy < Economic System
Holding Comercio Exterior e Integración

Abstract

This paper assesses how a free trade agreement between the MERCOSUR country members and Korea would possibly affect Argentina. To that aim, different methodologies were combined. In the first place, both direct and indirect effects of such agreement were captured by a general equilibrium simulation model. As usual, general equilibrium results have little sectoral disaggregation. Consequently, partial equilibrium approaches were also used: trade indicators, sectoral analysis and a simulation model. At the aggregate level, the results showed that a MERCOSUR-Korea agreement might be beneficial to Argentina as long as the agricultural sector takes part in the negotiation. At the sector level, the results obtained were as expected: given that recent trade between Argentina and Korea has been inter-industrial, the opportunities for Argentine exports concentrate in agricultural products and, in turn, the threats to domestic output and sales to MERCOSUR concentrate in industrial products. (The rest omitted)