The literature on FDI and trade agreements has focused on two main variables: welfare and trade flows (exports and/or imports). To determine the welfare implications of an ATR, static general equilibrium models were used.10 These models provide a clear and specific representation of economic variables (e.g. welfare.B, GDP, employment) based on the choices of consumers and producers representative of each sector. However, their forecasting capacity is somewhat limited, as they use actual data from a single year called the base year (Baysan et al. (2006)). To study the impact of FDI on trade flows, the gravity equation approach is generally used. In its simplest version, it postulates a relationship between the “mass” (GDP) of two countries and their trade flows.