These calculations clearly show that multilateral trade liberalization offers potentially far
greater increases in economic welfare for the FTAA members and non-FTAA countries/regions
in the global trading system. This is the case even if there would be less than complete free trade globally. That is, if existing trade barriers in the ongoing Doha Development Agenda
negotiations were to be reduced, for example, by one-third or one-half, the resulting global and
national gains would be proportionally lower. But these welfare gains would still far exceed the
welfare gains from the FTAA and would serve to offset the negative welfare effects of the
adjustment costs and trade diversion resulting from the FTAA. This would almost certainly
remain true even if there are other benefits from the non-trade aspects of the FTAA and possible
increases in capital accumulation and productivity.