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The Theory of the Free Trade Area As a Possible Form of Future Cooperation of the European Union with The US
[Teorie pásma volného obchodu jako možné formy budoucí spolupráce Evropské unie s USA]

Author

Listed:
  • Jana Kovářová

Abstract

The European Union and the United States of America present the world's largest exporter and importer of goods, services and capital. The idea of increasing foreign trade between them based on the implementation of the lowest degree of economic integration, a free trade area, is not new. A proposal was made in the 1990s to create a Transatlantic Free Trade Area between the EU and member countries of the North American Free Trade Agreement, which has not been successfully implemented. Nowadays, it is getting back to the forefront of interest among not only politicians but also economists. Whether political or economic pressures are behind this step, it is important to understand the general principle of the functioning of the free trade area. The aim of this paper is to illustrate the basic characteristics of the free trade area on the example of the EU and the US.

Suggested Citation

  • Jana Kovářová, 2014. "The Theory of the Free Trade Area As a Possible Form of Future Cooperation of the European Union with The US [Teorie pásma volného obchodu jako možné formy budoucí spolupráce Evropské unie s USA]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2014(1), pages 56-71.
    • Handle: RePEc:prg:jnlaop:v:2014:y:2014:i:1:id:426:p:56-71
    DOI: 10.18267/j.aop.426
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    References listed on IDEAS

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    1. Juergen B. Donges & Andreas Freytag & Ralf Zimmermann, 1997. "TAFTA: Assuring its Compatibility with Global Free Trade," The World Economy, Wiley Blackwell, vol. 20(5), pages 567-583, August.
    2. Siebert, Horst & Langhammer, Rolf J. & Piazolo, Daniel, 1996. "TAFTA: fuelling trade discrimination or global liberalisation?," Kiel Working Papers 720, Kiel Institute for the World Economy (IfW Kiel).
    3. Straubhaar, Thomas, 2006. "Wer will schon die TAFTA?," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 86(10), pages 618-619.
    4. Earl L. Grinols & Peri Silva, 2007. "An enhancement of modern free trade area theory," Oxford Economic Papers, Oxford University Press, vol. 59(2), pages 219-225, April.
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    More about this item

    Keywords

    Economic integration; free trade area; foreign trade exchange; trade creation effect; trade diversion effect; liberalisation;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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