Would Free Trade Agreements (FTAs) between the nations of the
Middle East and the United States be beneficial? What type of
economic benefits could be expected? Since the FTA with Jordon was
signed in October 2000, Jordanian exports to the US increased from
$72.8 million in 2000 to a stunning $1.267 billion in 2005 and the
exports were so large that the bilateral balance of trade shifted
from a Jordanian deficit of $239 million in 2000 to a surplus of
$624 million in 2005. Would other Middle Eastern countries derive
similar benefits? Lawrence uses the Global Trade Analysis Project
(GTAP) model of world trade and economic activity to analyze the
expected trade and other economic impacts of the prospective FTA
and to examine bilateral trade and investment flows, bilateral
trade frictions, and implications of the prospective accords for
the bilateral, regional, and global trade relations of the
countries involved.
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