Template-Type: ReDIF-Paper 1.0
Author-Name: Paul Missios
Author-X-Name-First: Paul
Author-X-Name-Last: Missios
Author-Email: pmissios@economics.ryerson.ca 
Author-Workplace-Name: Department of Economics, Ryerson University, Toronto, Canada
Author-Name: Halis Murat Yildiz
Author-X-Name-First: Halis
Author-X-Name-Last: Yildiz
Author-Email: hyildiz@economics.ryerson.ca 
Author-Workplace-Name: Department of Economics, Ryerson University, Toronto, Canada
Title: Do South-South Preferential Trade Agreements Undermine the Prospects for Multilateral Free Trade?
Abstract: Due to trade diversion, there has been concerns expressed over the proliferation of preferential trade agreements (PTAs) between South countries. In this paper, we compare welfare across the various forms of bilateral free trade agreements (FTAs) and customs unions (CUs) and examine their implications for the stability of multilateral free trade. While North-North PTAs tend to yield higher welfare, we fi?nd certain cases where South-South agreements are more likely to lead to global free trade than North-North or North-South agreements, but other cases where multilateral cooperation over free trade is the least likely under South-South agreements. We also examine how the expansion of existing agreements, or the combination of separate agreements, affects the potential for free trade. 
Classification-JEL: F12, F13, O19, O24
Keywords: trade agreements; free trade; development; tariffs
Length: 44 pages
Creation-Date: 2013-07
Revision-Date: 2015-02
Number: 045
File-URL: http://economics.ryerson.ca/workingpapers/wp045.pdf
File-Format: Application/pdf
File-Function: First version, 2013
File-URL: http://economics.ryerson.ca/workingpapers/wp045R.pdf
File-Format: Application/pdf
File-Function: Revised version, 2015
Handle: RePEc:rye:wpaper:wp045