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Completing the EU Customs Union. The Effects of Trade Procedure Harmonization

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Author Info

  • Persson, Maria

    ()
    (Research Institute of Industrial Economics (IFN))

  • Bourdet, Yves

    ()
    (Lund University)

Abstract

A main component of customs unions is a common trade policy on imports from non-member countries. Trade policy covers both tariff and non-tariff barriers like trade procedures. We argue that since trade procedures vary markedly across EU countries, the EU is not, strictly speaking, a customs union. To illustrate this, we estimate the impact of trade procedures on exports from non-EU countries and find a highly statistically significant and negative effect. Simulating what the effects would be of harmonizing trade procedures, i.e. to actually complete the EU customs union, we find that aggregated exports to the EU would increase by 20 percent for the average exporter.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 848.

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Length: 17 pages
Date of creation: 24 Aug 2010
Date of revision:
Publication status: Forthcoming as Persson, Maria and Yves Bourdet, 'Completing the EU Customs Union. The Effects of Trade Procedure Harmonization' in JCMS: Journal of Common Market Studies.
Handle: RePEc:hhs:iuiwop:0848

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Related research

Keywords: Customs Union; Economic Integration; European Union; Time Delays; Trade Facilitation; Trade Procedures;

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  1. Martinez-Zarzoso Inma & Márquez-Ramos Laura, 2008. "The Effect of Trade Facilitation on Sectoral Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-46, September.
  2. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
  3. Hildegunn Kyvik Nordås & Enrico Pinali & Massimo Geloso Grosso, 2006. "Logistics and Time as a Trade Barrier," OECD Trade Policy Papers 35, OECD Publishing.
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Cited by:
  1. Bourdet, Yves & Persson, Maria, 2011. "Reaping the Benefits of Deeper Euro-Med Integration Through Trade Facilitation," Working Papers 2011:15, Lund University, Department of Economics.
  2. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(17), pages 1-33.

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