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Customs Unions and Free Trade Areas

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  • A. Clausing , Kimberly

    ()
    (Reed College)

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    Abstract

    This paper compares free trade areas and customs unions in terms of their potential to liberalize trade. While neither arrangement is shown to be unambiguously preferable, this paper generates specific conditions that determine when customs unions are preferred to free trade areas. The ranking of the two arrangements depends on how common external tariffs are set in customs unions, the restrictiveness of rules of origin in free trade agreements, and the original tariff levels among the member countries.

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    Bibliographic Info

    Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

    Volume (Year): 15 (2000)
    Issue (Month): ()
    Pages: 418-435

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    Handle: RePEc:ris:integr:0139

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    Web page: http://econo.sejong.ac.kr/
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    Related research

    Keywords: Customs Unions; Free Trade Areas; Rules of Origin;

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    Cited by:
    1. Jayjit Roy, 2008. "Do Customs Union Members Engage In More Bilateral Trade Than Free Trade Agreement Members?," Departmental Working Papers 0803, Southern Methodist University, Department of Economics.
    2. L. Alan Winters, 2000. "Regionalism and Multilateralism in the Twenty-First Century," IDB Publications 8749, Inter-American Development Bank.
    3. Ketenci, Natalya, 2014. "The Effect of the European Union Customs Union on the Balance of Trade in Turkey," MPRA Paper 54662, University Library of Munich, Germany.

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