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The Europe Agreements: Implications for Trade Laws and Institutions. Lessons from Hungary


  • Sapir, André


Trade liberalization in Czechoslovakia, Hungary and Poland was accomplished in record time between 1989 and 1991. Sustainability became, however, a major concern in Central and Eastern Europe as the `honeymoon of trade liberalization' ended in 1991/2. The paper examines whether Europe Agreements (EAs) offer a credible mechanism to help in tying the hands of governments in favour of liberal trade policies. The focus is entirely on Hungary. The paper analyses trade policy formulation in Hungary and evaluates the actual constraint imposed by the EAs. It also examines the actual implementation of trade policies by Hungary vis--vis imports from the European Union and third countries. The paper concludes that the Hungarian experience suggests that EAs can be successful in sustaining trade liberalization in Central and Eastern Europe.

Suggested Citation

  • Sapir, André, 1994. "The Europe Agreements: Implications for Trade Laws and Institutions. Lessons from Hungary," CEPR Discussion Papers 1024, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1024

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    References listed on IDEAS

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    Cited by:

    1. Sapir, Andre, 1998. "The political economy of EC regionalism," European Economic Review, Elsevier, vol. 42(3-5), pages 717-732, May.
    2. Françoise Lemoine, 1996. "Trade Policy and Trade Patterns During Transition: a Comparison Between China and the CEECs," Working Papers 1996-02, CEPII research center.
    3. Egger, Peter & Larch, Mario, 2011. "An assessment of the Europe agreements' effects on bilateral trade, GDP, and welfare," European Economic Review, Elsevier, vol. 55(2), pages 263-279, February.

    More about this item


    Eastern Europe; EC; Regional Integration;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration


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