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|
|Date of revision:|
|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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- Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008.
"Import Demand Elasticities and Trade Distortions,"
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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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5084, National Bureau of Economic Research, Inc.
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- Moran, Cristian & Serra, Pablo, 1993. "Trade reform under regional integration : Policy simulations using a CGE model for Guatemala," Journal of Development Economics, Elsevier, vol. 40(1), pages 103-132, February.
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