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The Common External Tariff of a Customs Union : Alternative Approaches

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  • Srinivasan, T-N

Abstract

This paper describes alternative approaches to the central question of common external tariffs of a Custom Union. Taking off from the work of Kemp and Wan who showed the existence of a common external tariff of CU that deeps the welfare of non-members unchanged while revising that of the CU as compared to the situation prior to the formation of CU, it characterizes such a tariff structure for two leading benchmark examples as consumption-weighted average of pre-union tariffs and subsidies in the member countries.

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Bibliographic Info

Paper provided by Yale - Economic Growth Center in its series Papers with number 755.

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Length: 32 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fth:yalegr:755

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Postal: U.S.A.; YALE UNIVERSITY, ECONOMIC GROWTH CENTER, YALE STATION NEW-HAVEN CONNECTICUT 06520 U.S.A
Phone: (203) 432-3610
Fax: (203) 432-3898
Web page: http://www.econ.yale.edu/~egcenter/
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Keywords: CUSTOMS UNIONS; FREE TRADE AREAS; TARIFFS; TARIFF POLICY;

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References

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  1. Jiandong Ju & Kala Krishna, 1996. "Market Access and Welfare Effects of Free Trade Areas without Rules of Origin," NBER Working Papers 5480, National Bureau of Economic Research, Inc.
  2. Winters, L. Alan, 1996. "Regionalism and the Rest of the World: The Irrelevance of the Kemp-Wan Theorem," CEPR Discussion Papers 1316, C.E.P.R. Discussion Papers.
  3. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, vol. 6(1), pages 95-97, February.
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Citations

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Cited by:
  1. DeRosa, Dean A., 1998. "Regional integration arrangements : static economic theory, quantitative findings, and policy guidelines," Policy Research Working Paper Series 2007, The World Bank.
  2. Innwon Park & Soonchan Park, 2009. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," Asian Economic Papers, MIT Press, vol. 8(2), pages 119-139, June.
  3. Pascalis Raimondos-Møller & Alan D. Woodland, 2004. "Non-Preferential Trading Clubs," CESifo Working Paper Series 1145, CESifo Group Munich.
  4. Syropoulos, Constantinos, 2003. "Rules for the disposition of tariff revenues and the determination of common external tariffs in customs unions," Journal of International Economics, Elsevier, vol. 60(2), pages 387-416, August.
  5. Bond, Eric W & Syropoulos, Costas & Winters, L. Alan, 1996. "Deepening of Regional Integration and Multilateral Trade Agreements," CEPR Discussion Papers 1317, C.E.P.R. Discussion Papers.
  6. Panagariya, A., 1997. "Preferential trading and the myth of natural trading partners," Japan and the World Economy, Elsevier, vol. 9(4), pages 471-489, December.
  7. A.R. Kemal, 2004. "Exploring Pakistan’s Regional Economic Cooperation Potential," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 313-334.

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