Abstract

This paper discusses the pros and cons of a Transatlantic Free Trade Area (TAFTA) in comparison with an informal trade-facilitating marketplace between Europe and the US. It finds considerably more cons, especially since TAFTA would be expected to produce larger, more detrimental discriminatory effects on dynamic non-member economies, mainly in Asia but also in food-exporting regions as well. Efficiency-enhancing effects are argued to be achievable under a marketplace concept which does not separate insiders from outsiders. It is also shown that in foreign direct investment (FDI) and FDI-related service trade, TAFTA seems redundant as in recent years bilateral capital and trade flows have proven to be buoyant without preferential treatment.

Recommended Citation

Langhammer, Rolf J. (2009) "Why a Marketplace Must Not Discriminate," Business and Politics: Vol. 11 : Iss. 3, Article 3.
DOI: 10.2202/1469-3569.1262
Available at: http://www.bepress.com/bap/vol11/iss3/art3