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Is a Genuine Partnership Possible in a Western Hemisphere Free Trade Area?

In: The World Economy

Author

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  • Hans W. Singer

Abstract

The chief debate surrounding free trade areas and regional trade blocs which has dominated the general literature on the subject is that of trade creation versus trade diversion. Regional blocs can lead to trade creation, partly by increasing trade within the bloc and partly by increasing overall incomes and productivity within the bloc and hence leading to additional demand for imports, including imports from countries outside the bloc. They can also lead to trade diversion, partly by reducing imports by countries within the bloc from countries outside the bloc, and partly by diverting the resources of countries within the bloc away from exports to countries outside.

Suggested Citation

  • Hans W. Singer, 1996. "Is a Genuine Partnership Possible in a Western Hemisphere Free Trade Area?," Palgrave Macmillan Books, in: Marjan Svetličič & H. W. Singer (ed.), The World Economy, chapter 9, pages 153-164, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-24695-3_9
    DOI: 10.1007/978-1-349-24695-3_9
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