Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī (Jun 2008)
Evaluating the effects of utilizing PTA for Expansion of Foreign Trade Through the SMART Model (Case of Iran, Turkey and Pakistan )
Abstract
Concurrent with the acceleration of international export & import, there is a tendency toward the Preferential Trade Agreements (PTA) among all countries, including the Asians. Indeed, they have a twice propensity of joining WTO and making up the regional contracts at the same time. By now about 97% of world trade belongs to such countries which are the members of at least one PTA, comparing to their share of 72% in 1990. PTA is an agreement between several countries which their tariffs on produced commodities less than what the non-members should afford. Asia and Middle East are among the regions of which have such a contracts; either bilateral or regional. The point among the Islamic neighbors such as Iran, Pakistan and Turkey is very familiar. In this study, using the methodology of SMART model, we check the effects of Trade Creation (TC) and Trade Diversion (TD) of Iran for either Pakistan or Turkey and vice versa.
