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The economics of customs unions in the Commonwealth of Independent States

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Author Info
Michalopoulos, Constantine
Tarr, David

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Abstract

In the aftermath of the breakup of the Soviet Union, trade among the new independent states collapsed. To help reestablish interstate trade, the 12 members of the Commonwealth of independent States (CIS) established a Free Trade Area. More recently, four members of the CIS -Belarus, Kazakstan, the Kyrgyz Republic, and Russia- agreed in principle to establish a Customs Union. The authors analyze the economic implications for potential members of establishing such a Customs Union. They conclude that the dynamic effects of the Union (and the Free Trade Area) are likely to be negative, because they would tend to be mixed but would be more harmful to countries that have already established relatively liberal trade regimes with lower average and less-differentiated tariffs than the common external tariff contemplated by the proposed Customs Union.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1786.

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Date of creation: 30 Jun 1997
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Handle: RePEc:wbk:wbrwps:1786

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Keywords: Common Carriers Industry Environmental Economics&Policies Rules of Origin Economic Theory&Research Trade Policy TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT Trade and Regional Integration Environmental Economics&Policies Economic Theory&Research Trade Policy

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  1. de Melo, Jaime & Panagariya, Arvind & Rodrik, Dani, 1993. "The new regionalism : a country perspective," Policy Research Working Paper Series 1094, The World Bank. [Downloadable!]
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  2. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February. [Downloadable!] (restricted)
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  3. Bhagwati, J. & Panagariya, A., 1996. "Preferential Trading Areas and Multilateralism: Strangers, Friends or Foes?," Discussion Papers 1996_09, Columbia University, Department of Economics.
  4. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1995-1), pages 1-118. [Downloadable!]
  5. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander, 1995. "North-South R&D Spillovers," CEPR Discussion Papers 1133, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Berglas, Eitan, 1981. "Harmonization of commodity taxes : Destination, origin and restricted origin principles," Journal of Public Economics, Elsevier, vol. 16(3), pages 377-387, December. [Downloadable!] (restricted)
  7. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November. [Downloadable!] (restricted)
  8. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May. [Downloadable!] (restricted)
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  9. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers 1733, Harvard - Institute of Economic Research.
  10. Grossman, Gene M & Helpman, Elhanan, 1995. "The Politics of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 85(4), pages 667-90, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tarr, David, 2007. "Russian WTO accession : what has been accomplished, what can be expected," Policy Research Working Paper Series 4428, The World Bank. [Downloadable!]
  2. Aksen Ernest & Tochitskaya Irina, 2004. "Economic Effects of Belarus’ Participation in the CIS Countries Customs Union," EERC Working Paper Series 00-443e, EERC Research Network, Russia and CIS. [Downloadable!]
  3. Maryanchyk Ivan, 2005. "Ukrainian international trade: How far from the potential?," EERC Working Paper Series 05-14e, EERC Research Network, Russia and CIS. [Downloadable!]
  4. Robert M. Stern, 2002. "An Economic Perspective on Russia's Accession to the WTO," William Davidson Institute Working Papers Series 472, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  5. Schiff, Maurice, 2000. "Multilateral trade liberalization and political disintegration - implications for the evolution of free trade areas and customs unions," Policy Research Working Paper Series 2350, The World Bank. [Downloadable!]
  6. Abdur Chowdhury, 2003. "Wto Accession: What’S In It For Russia?," William Davidson Institute Working Papers Series 2003-595, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  7. Paul G. Hare, 2000. "Trade Policy during the Transition. Lessons from the 1990s," CERT Discussion Papers 0006, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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  8. Tarr, David & Shepotylo, Oleksandr, 2007. "The structure of import tariffs in the Russian Federation : 2001-05," Policy Research Working Paper Series 4265, The World Bank. [Downloadable!]
  9. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2003. "Chile’s Regional Arrangements: the Importance of Market Access and Lowering the Tariff to Six Percent," Working Papers Central Bank of Chile 238, Central Bank of Chile. [Downloadable!]
  10. Patrizia Tumbarello, 2005. "Regional Trade Integration and WTO Accession: Which is the Right Sequencing? An Application to the CIS," IMF Working Papers 05/94, International Monetary Fund. [Downloadable!]
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