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The economics of customs unions in the Commonwealth of Independent States

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  • Michalopoulos, Constantine
  • Tarr, David

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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Bibliographic Info

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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References

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  1. Berglas, Eitan, 1981. "Harmonization of commodity taxes : Destination, origin and restricted origin principles," Journal of Public Economics, Elsevier, Elsevier, vol. 16(3), pages 377-387, December.
  2. Coe, D.T. & Helpman, E., 1993. "International R&D Spillovers," Papers, Tel Aviv 5-93, Tel Aviv.
  3. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, Elsevier, vol. 43(1), pages 5-38, February.
  4. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(440), pages 134-49, January.
  5. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1733, Harvard - Institute of Economic Research.
  6. de Melo, Jaime & Panagariya, Arvind & Rodrik, Dani, 1992. "The New Regionalism: A Country Perspective," CEPR Discussion Papers, C.E.P.R. Discussion Papers 715, C.E.P.R. Discussion Papers.
  7. Grossman, Gene & Helpman, Elhanan, 1994. "The Politics of Free Trade Agreements," CEPR Discussion Papers, C.E.P.R. Discussion Papers 908, C.E.P.R. Discussion Papers.
  8. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, Elsevier, vol. 7(4), pages 317-322, November.
  9. repec:fth:coluec:9596-04 is not listed on IDEAS
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Citations

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Cited by:
  1. 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.
  2. Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 2001. "Chile's regional arrangements and the Free Trade Agreement of the Americas : the importance of market access," Policy Research Working Paper Series 2634, The World Bank.
  3. World Bank, 2005. "Ukraine's Trade Policy : A Strategy for Integration into Global Trade," World Bank Publications, The World Bank, number 7431, August.
  4. Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.
  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.
  6. Paul G. Hare, 2000. "Trade Policy during the Transition. Lessons from the 1990s," CERT Discussion Papers, Centre for Economic Reform and Transformation, Heriot Watt University 0006, Centre for Economic Reform and Transformation, Heriot Watt University.
  7. 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.
  8. Libman, Alexander & Vinokurov, Evgeny, 2010. "Is it really different? Patterns of regionalization in the post-Soviet Central Asia," MPRA Paper 21062, University Library of Munich, Germany.
  9. Shepotylo, Oleksandr & Tarr, David, 2007. "The structure of import tariffs in the Russian Federation : 2001-05," Policy Research Working Paper Series 4265, The World Bank.
  10. World Bank, 2004. "Ukraine : Trade Policy Study, Volume 2. Main Report," World Bank Other Operational Studies 15656, The World Bank.
  11. Patrizia Tumbarello, 2005. "Regional Trade Integration and WTO Accession," IMF Working Papers 05/94, International Monetary Fund.
  12. Hans Van Zon, 1998. "The Mismanaged Integration of Zaporizhzhya with the World Economy: Implications for Regional Development in Peripheral Regions," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 32(7), pages 607-618.
  13. Weber, Gerald, 2003. "Russia's and Kazakhstan's agro-food sectors under liberalized agricultural trade: a case for national product differentiation," Economic Systems, Elsevier, Elsevier, vol. 27(4), pages 391-413, December.
  14. Tarr, David, 2007. "Russian WTO accession : what has been accomplished, what can be expected," Policy Research Working Paper Series 4428, The World Bank.

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