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Trade Integration in the East African Community

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  • Meredith A. McIntyre
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    Abstract

    The paper analyses the potential trade impact of the forthcoming East African Community (EAC) customs union. It examines the trade linkages among the member countries of the EAC and the extent to which the introduction of the EAC common external tariff will liberalize their trade regimes. To gauge the potential trade impact of the formation of the customs union, simulations are conducted for Kenya. The empirical results indicate that the customs union will have a beneficial effect on Kenya''s trade. The paper does not draw any conclusions on the potential welfare impact of the customs union. Finally, factors other than enhanced trade might influence Kenyan policymakers to pursue regional integration, and these include regional cooperation in "behind the border" reforms and the provision of public goods.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=18057
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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/143.

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    Length: 26
    Date of creation: 01 Jul 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/143

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    Related research

    Keywords: Customs duties; Trade; Trade integration; Economic models; customs; customs union; trade diversion; trade creation; regional integration; trade regimes; trade flows; average tariff; partial equilibrium; tariff rates; economic integration; regional trade; trade facilitation; world prices; external tariff; tariff structure; tariff rate; tariff lines; intermediate goods; customs valuation; elasticity of substitution; common external tariff; free trade; tariff reduction; internal tariffs; trade impact; trading arrangements; rules of origin; trade agreement; transitional costs; competitive economies; import-competing sectors; trade liberalization; border trade; external tariffs; preferential tariff; tariff changes; world trade; trade areas; liberal trade; domestic production; liberal trade policies; trade agreements; excise taxes; domestic price; trade policies; mfn tariffs; tariff schedule; domestic prices; trade barriers; customs revenue; world trade organization; free trade areas; free trade agreement; import prices; lowering trade; multilateral trade; domestic producers; world ? trade; export duty; customs procedures; intellectual property; trading patterns; multilateral trade agreements; commodity composition; trade effect; anti-export bias; customs purposes; pattern of trade; external trade policy; customs valuation agreement; equilibrium model; multilateral trade negotiations; preferential trading; customs regulations; regional trade liberalization; trade diversion effect; customs administration; trade expansion; investment flows; most-favored-nation; world price; partner country; commodity trade; intellectual property rights; trade reforms; competitive gains; trade data; price of imports; imported good; trading partner; common market; reducing tariffs; import demand; trading system; export taxes; diverting trade; trade regime; customs exemptions; tariff ? structure; tariff schedules; changes in trade; open regionalism; increased trade; tariff preferences; customs valuation system; regional trade integration; trade taxes; monetary union; regional trade arrangements; import competition; trade arrangements; industry trade; trade preferences; import value; international trade; dynamic benefits; customs clearance; intermediate inputs; duty drawbacks; preferential tariff reduction; rates of protection; customs union issue; foreign ownership; agricultural commodities; external trade; reciprocal trade agreements; perfect substitutes; preferential trade; preferential trade liberalization; trade negotiations; export bias; procedures for customs; competition law; preferential access; adjustment process; preferential arrangements; export supply; international trading; tariff reductions; domestic distortions;

    This paper has been announced in the following NEP Reports:

    References

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    1. Anthony J. Venables, 2003. "Winners and losers from regional integration agreements," Economic Journal, Royal Economic Society, vol. 113(490), pages 747-761, October.
    2. Mkenda, Beatrice Kalinda, 2001. "Is East Africa an Optimum Currency Area?," Working Papers in Economics 41, University of Gothenburg, Department of Economics.
    3. Arvind Panagariya, 2000. "Preferential Trade Liberalization: The Traditional Theory and New Developments," Journal of Economic Literature, American Economic Association, vol. 38(2), pages 287-331, June.
    4. Padamja Khandelwal, 2004. "Comesa and Sadc," IMF Working Papers 04/227, International Monetary Fund.
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    Cited by:
    1. Anna Maria Mayda & Chad Steinberg, 2006. "Do South-South Trade Agreements Increase Trade? Commodity-Level Evidence from COMESA," Working Papers gueconwpa~06-06-03, Georgetown University, Department of Economics.
    2. Pamela Coke Hamilton & Yvonne Tsikata & Emmanuel Pinto Moreira, 2009. "Accelerating Trade and Integration in the Caribbean : Policy Options for Sustained Growth, Job Creation, and Poverty Reduction," World Bank Publications, The World Bank, number 2652, October.

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