Investigation and Comparison of the Welfare and Trade Effects of Iran Free Trade Agreement with Turkey, India and Pakistan countries: Computable General Equilibrium Model

Today, preferential and free trade agreements play an effective role in expanding trade in goods and services at the international level and as common practice in business planning and facilitating trade. The purpose of this article is to examine the trade and welfare effects of Iranchr('39')s free trade agreement with Turkey, India and Pakistan. For this purpose, using the Computable General Equilibrium Model (CGE) model and version 10 of the Global Trade Analysis Project (GTAP), three scenarios of concluding a free trade agreement with each of these countries were simulated. The results show that most of the welfare effects of the free trade agreement between Iran and Turkey are  2027 million Dollars, India is 1311 million Dollars and Pakistan is very small, about  38 million Dollars . On this basis, it was suggested that the Iranian government first enter into a free trade agreement with Turkey on mineral products, agriculture and services. And with India be centered on industrial, mineral, food and service products, and on rice and cereals by eliminating customs tariffs more restrictively and over time. Regarding Pakistan, it is necessary to identify the trade field between the two countries during trade negotiations and to provide the term for the success of the bilateral free trade agreement between the two countries by increasing bilateral trade exchanges.