Premium
Mega‐Regional Agreements and Their Impact on Australia
Author(s) -
Petri Peter A.,
Plummer Michael G.
Publication year - 2019
Publication title -
australian economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 29
eISSN - 1467-8462
pISSN - 0004-9018
DOI - 10.1111/1467-8462.12355
Subject(s) - computable general equilibrium , general partnership , negotiation , mega , international trade , economics , international economics , regional trade , applied general equilibrium , economic impact analysis , business , political science , general equilibrium theory , free trade , macroeconomics , finance , physics , astronomy , law , microeconomics
This paper estimates the effects of emerging mega‐regional agreements on the economy of Australia using a Computable General Equilibrium model. Scenarios considered include the 11‐member Comprehensive and Progressive Agreement for Trans‐Pacific Partnership (CPTPP) agreement, its possible enlargement to include five additional members (‘TPP16’) and the Regional Comprehensive Economic Partnership (RCEP) currently under negotiation. The study finds that Australia stands to enjoy real income and trade gains along both the CPTPP and RCEP paths. However, since Australia is already benefiting from its own liberal trade policies and many prior trade agreements, benefits are relatively modest, typically below one per cent of real income .