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Customs Unions and Special Protection

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  • Tabakis Chrysostomos

    () (Universidade Nova de Lisboa)

Abstract

This paper investigates the impact of customs unions (CUs) on the ability of countries to multilaterally cooperate within an economic environment characterized by trade-flow volatility. We find that the initiation of CU talks results in an easing of multilateral trade tensions, especially with regard to the employment of special-protection instruments, such as anti-dumping duties or safeguards. However, once the CU agreements come into force, a retreat to a more protectionist trading environment becomes necessary so that multilateral cooperation does not break down. Interestingly, in comparison with the pre-CU world, the utilization of special-protection tools in the post-CU world is more severe for high import volumes, but is less frequent overall. Moreover, normal protection remains low, largely unchanged from the pre-CU era.

Suggested Citation

  • Tabakis Chrysostomos, 2010. "Customs Unions and Special Protection," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-40, December.
  • Handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:107
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    References listed on IDEAS

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    1. Bagwell, Kyle & Staiger, Robert W., 1997. "Multilateral tariff cooperation during the formation of customs unions," Journal of International Economics, Elsevier, vol. 42(1-2), pages 91-123, February.
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    Cited by:

    1. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December.
    2. Chrysostomos Tabakis & Maurizio Zanardi, 2018. "Preferential Trade Agreements and Antidumping Protection," Working Papers 220851297, Lancaster University Management School, Economics Department.

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