This paper uses a two-country, computable general equilibrium (CGE), trade model to analyze the impact on Mexico and the U.S. of the precipitous peso depreciation in late 1994 and early 1995, and of the policy response to the crisis. The model includes explicit treatment of agricultural policies...

We use a multi-country computable general equilibrium (CGE) model with agricultural policy details to simulate the effects of North American Free Trade Agreement (NAFTA). We find that Mexico gains from NAFTA only when it also removes domestic distortions in agriculture. In that case, agriculture...

We describe the main economic arguments posed for and against the North American Free Trade Agreement (NAFTA) during the U.S. policy debate. To evaluate these arguments, we analyze recent trade data and survey post-NAFTA studies. We find that both the U.S. and Mexico benefit from NAFTA, with...

"In this paper, we review the debate on "new regionalism," focusing on the tools used to evaluate regional trade agreements (RTAs). We find that much analysis uses tools from old trade theory in the Viner-Meade tradition, focusing on trade creation, trade diversion, and terms-of-trade effects....

Much of the debate over whether or not developing countries gain from regional trade agreements (RTA's) has focused on two characteristics that are common to developing countries: their relatively high tariffs and their high trade dependencies on one or a few developed trade partners. In this...