Is China a Northern Partner to Mercosul?

Year: 
2006
Autor(s): 
Renato Galvão Flôres Junior; Masakazu Watanuki
Serie number: 617
Abstract: 
We contrast Free Trade Areas involving Mercosul and the EU25, the US and China, respectively, using a new CGE model and associated database. Roughly, the China FTA lies halfway the other two, a bias towards the US pattern being suggested. When considering China a new Northern partner, protective deals don?t seem advisable. China?s advantages should prevail when facing the US or the EU: its need of capital goods, for instance, may open profitable cross-exchanges. China?s emergence can be a positive factor, if placed in an enlarged policy space where, together with its Asian neighbours, it counter-balances the US-EU polarity.