Tariff protection and trade agreements

This paper studies the optimal tariff rates on goods imported from the rest of the world when a commercial club accepts a new partner. It shows that when a new member is accepted into the club, the other members of a free trade agreement have incentives to reduce tariffs on the rest of the world...

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Detalles Bibliográficos
Autor: Medrano, Leonardo
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1999
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:inglés
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/224
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/224
Access Level:acceso abierto
Palabra clave:tariffs
imported goods
free trade agreement
custom union
aranceles
bienes importados
tratado de libre comercio
Unión Aduanera
Descripción
Sumario:This paper studies the optimal tariff rates on goods imported from the rest of the world when a commercial club accepts a new partner. It shows that when a new member is accepted into the club, the other members of a free trade agreement have incentives to reduce tariffs on the rest of the world's goods. However, when the trade agreement is a custom union, the union may have incentives to increase the common external tariff. This happens when the industry of the custom union is small compared to the world industry.