Paper Information

Journal:   IRANIAN JOURNAL OF TRADE STUDIES (IJTS)   FALL 2007 , Volume 11 , Number 44; Page(s) 101 To 129.
 
Paper: 

A SURVEY ON THE EFFECTS OF PREFERENTIAL TRADE AGREEMENT (PTA) AMONG IRAN AND CENTRAL ASIA COUNTRIES

 
 
Author(s):  MEHRABI L.*
 
* 
 
Abstract: 

With respect to strategic and economic situation of Central Asia, in this paper, the impact of tariff reduction on overal trade flows, tariff revenues and trade balances under a Preferential Trade Agreement (PTA) among Iran and Central Asia Countries are considered. Two different scenarios i.e. “tariff reduction of 30% and 100%” were considered. The smart model was applied for the 2002-2003 period.
The results reveal that with tariff reduction under PTA, Iran’s overall trade will increase, but most of this increase is from import side. As a result the trade balance deficit with Asian Countries will increase. The findings suggest that to get more benefit from PTA agreement, we should emphasize on the commodities with more trade creation and trade diversions. According to our results, these commodities are: Articles of apparel, accessories, knit or crochet (Cod 61), footwear, gaiters and the like, pares thereof (Cod 64), carpets and other textile floor coverings (Cod 57), special woven or tufted fabric, lace, tapestry etc (Cod 58) with more effects of trade creation and footwear, gaiters and the like, pares thereof (Cod 64) and soaps, lubricants, waxes, candles, modeling pastes (Cod 34) which have more trade diversion effects.

 
Keyword(s): PREFERENTIAL TRADE AGREEMENT, TRADE CREATION AND DIVERSION/ SMART MODEL, IRAN, CENTRAL ASIA COUNTRIES
 
References: 
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