Link to the University of Pittsburgh
Link to the University Library SystemContact us link
AEI Banner

Canada and the European Union: Prospects for a Free Trade Agreement. CEPS Working Document No. 298/July 2008

Sarisoy Guerin, Selen. and Napoli, Chris. (2008) Canada and the European Union: Prospects for a Free Trade Agreement. CEPS Working Document No. 298/July 2008. [Working Paper]

[img]
Preview
PDF - Published Version
Download (222Kb) | Preview

    Abstract

    This paper argues that there are significant potential economic gains to be obtained from an EU-Canada Free Trade Agreement. The evolution of trade between the US and Canada following the signing of CUSFTA in 1989 offers a good illustration of how trade might increase after an EU-Canada FTA, as the patterns and levels of protection between the EU and Canada today are very similar to the protection that existed between the US and Canada in 1989. Although many empirical studies fail to find support for ‘trade diversion’ created by NAFTA (or CUSFTA) at the expense of the EU and to the benefit of the US, there is some evidence of trade diversion when detailed regional trade is examined. If indeed trade diversion has occurred due to NAFTA, then an EU-Canada FTA is welfare-enhancing for Canada. For the EU, a potential FTA can level the playing field with the US and increase the competitiveness of European firms in the Canadian market.

    Export/Citation:EndNote | BibTeX | Dublin Core | ASCII (Chicago style) | HTML Citation | OpenURL
    Social Networking:
    Item Type: Working Paper
    Subjects for non-EU documents: EU policies and themes > External relations > international trade
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > CEPS Working Documents
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 20 Apr 2009
    Page Range: p. 32
    Last Modified: 06 Apr 2012 12:25
    URI: http://aei.pitt.edu/id/eprint/9314

    Actions (login required)

    View Item

    Document Downloads