The Access of Mercosur Exports to the European Market
Author: Marta R. Castilho
Publisher:
Published: 2004
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKThe European Union and the Mercosur are presently negotiating a Free Trade Area, and that may improve the conditions of access of Latin American exports to the European market. In a matter of fact, the European Union's Commercial Policy is very discriminatory and is not favorable to Mercosur exports. This explains, in addition to the Mercosur exports composition, the weak trade volume between the two regions as compared to trade between the EU and its other partners. In the first part of this article we analyze the composition of trade between the two regions and both tariff and nontariff European barriers vis-a-vis Mercosur and its competitors. In a second step, we use a disaggregated gravity approach to measure the impacts of tariff and nontariff barriers on bilateral trade between the EU and 92 of its partners. This gives us the sensitivity of European imports to trade protection and allow us to identify the products that are most likely to present untapped trade potential in case bilateral trade liberalization eventually takes place.