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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.

Suggested Citation

  • Michalopoulos, Constantine & Tarr, David, 1997. "The economics of customs unions in the Commonwealth of Independent States," Policy Research Working Paper Series 1786, The World Bank.
    • Handle: RePEc:wbk:wbrwps:1786
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    References listed on IDEAS

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    Cited by:

    1. Alexander Libman & Evgeny Vinokurov, 2011. "Is it really different? Patterns of regionalisation in post-Soviet Central Asia," Post-Communist Economies, Taylor & Francis Journals, vol. 23(4), pages 469-492, June.
    2. 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.
    3. 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, vol. 32(7), pages 607-618.
    4. Richard Pomfret, 2003. "Trade and Exchange Rate Policies in Formerly Centrally Planned Economies," The World Economy, Wiley Blackwell, vol. 26(4), pages 585-612, April.
    5. Eromenko, Igor & Mankovska, Nadiya & Dean, James W, 2003. "Will WTO membership really improve market access for Ukrainian exports?," MPRA Paper 67481, University Library of Munich, Germany.
    6. 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.
    7. György Simon, Jr, 2010. "On The Customs Union Of Belarus, Kazakhstan And Russia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 55(184), pages 7-28, January –.
    8. 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.
    9. Eromenko, Igor, 2002. "EU Enlargement to the East and its Impact on Non-accessing Countries, Applied General Equilibrium Analysis," MPRA Paper 67534, University Library of Munich, Germany.
    10. Oxana Babecká Kucharčuková & Jan Babecký & Martin Raiser, 2012. "Gravity Approach for Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions," Open Economies Review, Springer, vol. 23(2), pages 277-301, April.
    11. Ms. Patrizia Tumbarello, 2005. "Regional Trade Integration and WTO Accession: Which Is the Right Sequencing? An Application to the CIS," IMF Working Papers 2005/094, International Monetary Fund.
    12. Glenn W. Harrison & Thomas F. Rutherford & Tarr,David, 2003. "Rules of thumb for evaluating preferential trading arrangements : evidence from computable general equilibrium assessments," Policy Research Working Paper Series 3149, The World Bank.
    13. Bchir, Mohamed Hedi & Hammouda, Hakim Ben, 2008. "Does theory matters in Global CGE models," Conference papers 331807, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Robert M. Stern, 2002. "An Economic Perspective on Russia's Accession to the WTO," Working Papers 480, Research Seminar in International Economics, University of Michigan.
    15. Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.
    16. 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.
    17. 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.
    18. 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.
    19. Constantine Michalopoulos, 2001. "L'intégration des économies en transition au système du commerce mondial," Revue d'Économie Financière, Programme National Persée, vol. 6(1), pages 65-95.
    20. Eromenko, Igor & Lisenkova, Katerina, 2006. "Impact of joining the WTO on Ukrainian ferrous metallurgy: subsidies vs. antidumping, is there really a trade-off?," MPRA Paper 67477, University Library of Munich, Germany.
    21. World Bank, 2005. "Ukraine's Trade Policy : A Strategy for Integration into Global Trade," World Bank Publications - Books, The World Bank Group, number 7431, December.
    22. Tarr, David, 2007. "Russian WTO accession : what has been accomplished, what can be expected," Policy Research Working Paper Series 4428, The World Bank.
    23. World Bank, 2004. "Ukraine : Trade Policy Study, Volume 2. Main Report," World Bank Publications - Reports 15656, The World Bank Group.
    24. Maryanchyk Ivan, 2005. "Ukrainian international trade: How far from the potential?," EERC Working Paper Series 05-14e, EERC Research Network, Russia and CIS.
    25. Weber, Gerald, 2003. "Russia's and Kazakhstan's agro-food sectors under liberalized agricultural trade: a case for national product differentiation," Economic Systems, Elsevier, vol. 27(4), pages 391-413, December.

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