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GTAP Resources: Resource Display

GTAP Resource #2791

"THE STRATEGIC DIMENSIONS OF THE FREE TRADE AGREEMENT BETWEEN THE UNITED STATES AND TUNISIA"
by Sadni Jallab, Mustapha and Hakim Ben Hammouda


Abstract
The agreement under negotiation between Tunisia and the United States foresees several modalities in dismantling tariffs. Free trade agreements (FTA) between Tunisia and the US will expose the Tunisian economy to increased competition on both price and quality in a range of products. This competitive pressure should provoke an increase in productivity on the part of Tunisian firms. Under such circumstances, it is quite possible that allowing US exports tariff-free access to the Tunisian market could result in substantial trade diversion. Although Tunisian consumers could enjoy lower prices, these gains could be more than offset for the economy as a whole because of the loss in tariff revenue and the purchase of goods from the United States rather than more efficient sources. In addition, there is the possibility that Tunisia could experience declines in its terms of trade since its tariff reductions would be much larger than those of the United States. Consequently, this study will also try to quantify the impact of the FTA on direct revenue. The quantification of the trade expansion will provide a basis for estimating the resulting revenue effects due to trade diversion from non-US to US producers and suppliers.


Resource Details (Export Citation) GTAP Keywords
Category: 2008 Conference Paper
Status: Published
By/In: Presented at the 11th Annual Conference on Global Economic Analysis, Helsinki, Finland
Date: 2008
Version:
Created: Sadni Jallab, M. (4/16/2008)
Updated: Sadni Jallab, M. (4/16/2008)
Visits: 1,567
- Preferential trading arrangements
- Economic development
- SoftwareThe GTAP Data Base and extensions
- Africa (North)
- North America


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