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The common external tariff of a customs union: Alternative approaches

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  • Srinivasan, T. N.

Abstract

This paper describes alternative approaches to the central question of common external tariffs of a Custom Union. Taking off from the work of Kemp and Wan who showed the existence of a common external tariff of CU that deeps the welfare of non-members unchanged while revising that of the CU as compared to the situation prior to the formation of CU, it characterizes such a tariff structure for two leading benchmark examples as consumption-weighted average of pre-union tariffs and subsidies in the member countries.
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Suggested Citation

  • Srinivasan, T. N., 1997. "The common external tariff of a customs union: Alternative approaches," Japan and the World Economy, Elsevier, vol. 9(4), pages 447-465, December.
  • Handle: RePEc:eee:japwor:v:9:y:1997:i:4:p:447-465
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    References listed on IDEAS

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    1. Jiandong Ju & Kala Krishna, "undated". "Market Access and Welfare Effects of Free Trade Areas without Rules of Origin," EPRU Working Paper Series 96-03, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    2. Winters, L Alan, 1997. "Regionalism and the Rest of the World: The Irrelevance of the Kemp-Wan Theorem," Oxford Economic Papers, Oxford University Press, pages 228-234.
    3. Kemp, Murray C. & Wan, Henry Jr., 1976. "An elementary proposition concerning the formation of customs unions," Journal of International Economics, Elsevier, pages 95-97.
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    Cited by:

    1. Raimondos-Moller, Pascalis & Woodland, Alan D., 2006. "Non-preferential trading clubs," Journal of International Economics, Elsevier, pages 79-91.
    2. Innwon Park & Soonchan Park, 2009. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," Asian Economic Papers, MIT Press, pages 119-139.
    3. Bond, Eric W. & Syropoulos, Constantinos & Winters, L. Alan, 2001. "Deepening of regional integration and multilateral trade agreements," Journal of International Economics, Elsevier, pages 335-361.
    4. Syropoulos, Constantinos, 2003. "Rules for the disposition of tariff revenues and the determination of common external tariffs in customs unions," Journal of International Economics, Elsevier, pages 387-416.
    5. Panagariya, A., 1997. "Preferential trading and the myth of natural trading partners," Japan and the World Economy, Elsevier, pages 471-489.
    6. DeRosa, Dean A., 1998. "Regional integration arrangements : static economic theory, quantitative findings, and policy guidelines," Policy Research Working Paper Series 2007, The World Bank.
    7. A.R. Kemal, 2004. "Exploring Pakistan’s Regional Economic Cooperation Potential," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 313-334.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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