Central American Economic Integration - The Impact of a Customs Union with Guatemala on El Salvadorâ€™s Economy
This study analyzes the expected impact of the implementation of a Customs Union between Guatemala and El Salvador on the latterâ€™s economy. In order to do so, the main implications of moving from a Free Trade Area to a Customs Union are examined: CET establishment (with special attention paid to those sectors that would be negatively affected by a tariff reduction), RoO elimination and the abolition of customs controls. The analysis anticipates that efficiency gains from a number of factors (including reduction of goodsâ€™ prices, RoO administrative and compliance expenses and custom-related transaction costs) surpass the negative impact on domestic producers that are affected by a tariff cutback.
|Date of creation:||Jul 2012|
|Publication status:||Published in Berlin Working Papers on Money, Finance, Trade and Development, July 2012|
|Contact details of provider:|| Web page: http://finance-and-trade.htw-berlin.de|
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- Verwaal, E. & Donkers, A.C.D., 2001.
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ERIM Report Series Research in Management
ERS-2001-13-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
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4669, C.E.P.R. Discussion Papers.
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NBER Working Papers
5084, National Bureau of Economic Research, Inc.
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"Free Trade Agreements versus Customs Unions: An Examination of East Asia,"
11301, University Library of Munich, Germany.
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