@techreport{Siebert1996TAFTA,
abstract = {This paper analyses the prospects and problems of a Transatlantic Free Trade Area
(TAFTA) between the European Union and the United States. Possible economic
reasons for the proposal of TAFFA such as the intensity of bilateral trade and a strong
interdependence in investment flows and the similarity of the EU and the US in their
factor endowment and tariff structure are examined.
There are cases shining favourably on the idea, but the implementation of TAFTA will
imply substantial costs due to the internal and external consequences. The main
problem of a free trade area between the two most important economic blocs is the
impact on the multilateral approach of trade liberalisation.
The authors suggest a Transatlantic Liberalisation Initiative (TALI) as an alternative to
TAFTA. Under TALI, the EU and the US should accelerate their implementation of
their Uruguay Round commitments and liberalise in areas that are not yet covered by
WTO agreements. This should be done under the Most-Favoured Nation clause and
would be a strong motivating force for multilateral liberalisation. In addition, TALI
could be a forerunner in reducing market segmentation and in establishing a semiinternal
market between Europe and America.},
address = {Kiel},
author = {Horst Siebert and Rolf J. Langhammer and Daniel Piazolo},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F15; 330; Transatlantic Free Trade Area; regional integration; European Union; multilateral liberalisation; United States},
language = {eng},
number = {720},
publisher = {Kiel Institute for the World Economy (IfW)},
title = {TAFTA: fuelling trade discrimination or global liberalisation?},
type = {Kiel Working Papers},
url = {http://hdl.handle.net/10419/869},
year = {1996}
}
