Deepening Integration in Mercosur - Dealing with Disparities

TABLE OF CONTENTS......Page 5
PREFACE......Page 7
ACKNOWLEDGMENTS......Page 9
INTRODUCTION......Page 11
PART I: OVERVIEW. THE CHALLENGE OF DISPARITIES......Page 15
Introduction......Page 17
The Treatment of Asymmetries in Trade and Integration Agreements......Page 19
An Overview of Asymmetries in MERCOSUR......Page 26
Conclusion: Critical Elements for Convergence in MERCOSUR......Page 30
REFERENCES......Page 33
Introduction......Page 35
Macroeconomic Policy Asymmetries......Page 36
Size Asymmetries: Regional Trade......Page 38
Size Asymmetries: Regional Investment......Page 40
Extraregional Comparative Advantage Asymmetries......Page 43
Final Reflections: Bargaining Power Asymmetries......Page 45
REFERENCES......Page 48
PART II: DEEPER INTEGRATION AND ECONOMIC DISPARITIES......Page 49
Introduction......Page 51
Factor Prices and Factor Mobility......Page 52
Whose Trade Is Diverted?......Page 55
Market Access and Industrial Location......Page 58
Clustering and Agglomeration......Page 61
Conclusions......Page 66
REFERENCES......Page 67
Introduction......Page 69
Disparities in MERCOSUR......Page 71
Agglomeration Forces as the Source of Disparity......Page 74
Trade Liberalization, Agglomeration, and Firm Selection......Page 79
Conclusion......Page 87
REFERENCES......Page 88
Introduction......Page 91
MERCOSUR’s Common External Tariff and Its Exceptions......Page 92
The Model......Page 94
Calibration of the Model......Page 95
Simulations......Page 97
Results of the Simulations......Page 98
Conclusions......Page 109
APPENDIX 5.1......Page 112
APPENDIX 5.2......Page 115
REFERENCES......Page 123
Introduction......Page 125
Trade Policy and Rules of Movement in the Customs Union......Page 126
Changing the Rules of Movement and Asymmetries in Market Size......Page 136
Common Revenues from the CET......Page 140
Conclusions......Page 152
APPENDIX......Page 154
REFERENCES......Page 157
PART III: COORDINATION OF MICROECONOMIC POLICIES......Page 159
Introduction......Page 161
General Definitions......Page 162
A Review of the European Experience......Page 165
Competitiveness Policies in the MERCOSUR Countries......Page 171
The Impact of the Promotion Instruments on Competition Conditions in MERCOSUR......Page 179
The Impact of Regulatory Asymmetries......Page 195
Conclusions......Page 198
APPENDIX......Page 204
REFERENCES......Page 226
Introduction......Page 229
Comparing Tax Structures in the MERCOSUR Countries......Page 230
Main Reasons for Tax Differentials......Page 239
Tax Harmonization Goals and MERCOSUR’s Challenges......Page 241
Lessons from the EU......Page 248
Tax Asymmetries and Deepening Integration......Page 251
Alternative Scenarios for Tax Harmonization in MERCOSUR......Page 256
A Calendar for Tax Harmonization......Page 259
Conclusions......Page 261
REFERENCES......Page 262
Introduction......Page 265
Dimension 1: Trade-Related Regional Policies......Page 269
Dimension 2: Creating a Truly United Area for Investment and Common Competitiveness Policies......Page 272
A MERCOSUR Competition Directorate—Policy D.2.3......Page 277
Dimension 3: Regional Cohesion Funds......Page 278
Background Policies......Page 279
Implementation......Page 281
Conclusions......Page 284
APPENDIX......Page 285
REFERENCES......Page 287
PART IV: COORDINATION OF MACROECONOMIC POLICIES......Page 289
Introduction......Page 291
Regional Macroeconomic Performance......Page 292
Macroeconomic Cooperation in Conditions of Transition......Page 300
Conclusions......Page 307
APPENDIX......Page 309
REFERENCES......Page 313
Introduction......Page 315
Why and How Did Europe Coordinate?......Page 317
European Disparities and Lessons for MERCOSUR......Page 329
Why Coordinate Macroeconomic Policies in MERCOSUR?......Page 333
What Should Be Coordinated in MERCOSUR?......Page 347
APPENDIX......Page 359
REFERENCES......Page 360
PART V: INSTITUTIONS FOR A DEEPER INTEGRATION......Page 363
Introduction......Page 365
MERCOSUR Institutions as “Independent Variables”......Page 366
MERCOSUR Institutions as “Dependent Variables”......Page 375
Regional Governance and Structural Asymmetries......Page 377
Regional Governance and Regulatory Asymmetries......Page 380
Conclusions and Recommendations......Page 383
REFERENCES......Page 388
Introduction......Page 391
Structural Issues: National Systems and the Complex Common System for the Transposition of Norms......Page 393
Immediate Context: The Current Status of the Transposition of Norms and Their Impact on Disparities among the Member States......Page 402
REFERENCES......Page 410