Customs Unions and Free Trade Areas
AbstractThis 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 InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 15 (2000)
Issue (Month): ()
Customs Unions; Free Trade Areas; Rules of Origin;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- L. Alan Winters, 2000. "Regionalism and Multilateralism in the Twenty-First Century," IDB Publications 8749, Inter-American Development Bank.
- 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.
- Jayjit Roy, 2010. "Do Customs Union Members Engage in More Bilateral Trade than Free-Trade Agreement Members?," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 663-681, 09.
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