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Regionalism and Multilateral Tariff Co-operation

In: International Trade Policy and the Pacific Rim

Author

Listed:
  • Kyle Bagwell

    (Columbia University
    National Bureau of Economic Research)

  • Robert W. Staiger

    (National Bureau of Economic Research
    University of Wisconsin-Madison)

Abstract

In recent years, there has been a proliferation of regional trading agreements. What are the consequences of such agreements for multilateral tariff co-operation? Are regional agreements ‘building blocks’ or ’stumbling blocks’ for the multilateral liberalization process? In this chapter, we develop a formal model that identifies important effects that regional agreements may have on multilateral tariff co-operation; and we find that the consequences of such agreements for multilateral tariff co-operation need not be clear-cut: regional agreements can produce effects which complement multilateral liberalization efforts, and can also produce effects which undermine the multilateral liberalization process. While we do not provide a conclusive answer to the questions posed above, we outline a framework of effects which can enable a better understanding of the possible impact of regional agreements on multilateral tariff co-operation. We also describe circumstances in which the net impact of the various effects can be determined.

Suggested Citation

  • Kyle Bagwell & Robert W. Staiger, 1999. "Regionalism and Multilateral Tariff Co-operation," International Economic Association Series, in: John Piggott & Alan Woodland (ed.), International Trade Policy and the Pacific Rim, chapter 7, pages 157-190, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-14543-0_7
    DOI: 10.1007/978-1-349-14543-0_7
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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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