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, Ernst & Donkers, Bas, 2003.
"Customs-Related Transaction Costs, Firm Size and International Trade Intensity,"
Small Business Economics,
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- Kala Krishna, 2005. "Understanding Rules of Origin," NBER Working Papers 11150, National Bureau of Economic Research, Inc.
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- Olivier Cadot & Jaime de Melo & Antoni Estevadeordal & Akiko Suwa-Eisenmann & Bolormaa Tumurchudur, 2002. "Assessing the effect of NAFTA's rules of origin," Research Unit Working Papers 0306, Laboratoire d'Economie Appliquee, INRA.
- Peter Walkenhorst & Tadashi Yasui, 2004. "Quantitative Assessment of the Benefits of Trade Facilitation," International Trade 0401008, EconWPA. Full references (including those not matched with items on IDEAS)
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