To shed some light on the FTAA issues, we turn now to our computational analysis,
which is based on the Michigan Model of World Production and Trade. For modeling purposes,
we use as inputs into the model the bilateral tariff rates and estimates of services barriers
discussed above. It is assumed that the FTAA countries/regions covered in the model reduce
their bilateral trade barriers at a single point in time and thus adopt the measures for trade
liberalization that the FTAA agreement is designed to achieve.