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Customs Unions and Free Trade Areas

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  • A. Clausing , Kimberly

    () (Reed College)

Abstract

This paper compares free trade areas and customs unions in terms of their potential to liberalize trade. While neither arrangement is shown to be unambiguously preferable, this paper generates specific conditions that determine when customs unions are preferred to free trade areas. The ranking of the two arrangements depends on how common external tariffs are set in customs unions, the restrictiveness of rules of origin in free trade agreements, and the original tariff levels among the member countries.

Suggested Citation

  • A. Clausing , Kimberly, 2000. "Customs Unions and Free Trade Areas," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 15, pages 418-435.
  • Handle: RePEc:ris:integr:0139
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    References listed on IDEAS

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    Cited by:

    1. Türkcan, Kemal & Pişkin, Erhan, 2014. "Ticaret Anlaşmalarının Türkiye’nin İhracat Dinamiğine Etkisi: Yaygın ve Yoğun Ticaret
      [The Effects of the Trade Agreements on the Dynamics of Turkey’s Export: Extensive and Intensive Margins]
      ," MPRA Paper 59841, University Library of Munich, Germany.
    2. L. Alan Winters, 2000. "Regionalism and Multilateralism in the Twenty-First Century," IDB Publications (Working Papers) 2188, Inter-American Development Bank.
    3. L. Alan Winters, 2000. "Regionalism and Multilateralism in the Twenty-First Century," IDB Publications (Working Papers) 8749, Inter-American Development Bank.
    4. repec:sae:fortra:v:52:y:2017:i:4:p:219-232 is not listed on IDEAS
    5. Natalya Ketenci, 2017. "The Effect of the European Union Customs Union on the Balance of Trade in Turkey," Foreign Trade Review, , vol. 52(4), pages 219-232, November.
    6. Jayjit Roy, 2010. "Do Customs Union Members Engage in More Bilateral Trade than Free-Trade Agreement Members?," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 663-681, September.

    More about this item

    Keywords

    Customs Unions; Free Trade Areas; Rules of Origin;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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