Arbeitspapier
Intra-Bloc Tariffs and Preferential Margins in Trade Agreements
We study, theoretically and empirically, how countries choose intra-bloc tariffs and preferential margins when they form Preferential Trade Agreements (PTAs). Our model indicates that countries should set systematically lower preferential margins when the bloc takes the form of a free trade area (where members set external trade policies independently), relative to a customs union (where members coordinate external tariffs). Moreover, in customs unions (but not necessarily in free trade areas) preferential margins should increase with the supply of partner countries and decrease with the level of preferential imports. These relationships reflect, respec-tively, the internalization of political-economy goals within the bloc and the desire to curb trade diversion. Using a sample that covers most PTAs formed by Latin American countries in the 1990s, when their popularity in the region shot up, we find empirical support for each of those predictions. These findings make clear that the type of PTA matters significantly for the bloc's tariff structure. Our results carry out important implications for the welfare consequences and the social desirability of different types of PTAs.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 9245
- Klassifikation
-
Wirtschaft
Economic Integration
Trade Policy; International Trade Organizations
- Thema
-
regionalism
free trade agreements
customs unions
tariff complementarity
Latin America
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ornelas, Emanuel
Tovar, Patricia
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ornelas, Emanuel
- Tovar, Patricia
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2021
Ähnliche Objekte (12)
Simla and Preferential Tariffs.
The Impact of Preferential Trade Agreements on the Margins of International Trade
Some Advantages of Preferential Tariffs.
The Indian Government on Preferential Tariffs and Retaliation.
Safeguard provisions in preferential trade agreements
Preferential Trade Agreements and Global Sourcing
Digital trade integration in preferential trade agreements
ASEAN’s Preferential Trade Agreements (PTA) strategy
India and Preferential Tariffs. From the Indian Point of View.
Trade tariffs and self-enforcing environmental agreements
Trade Tariffs and Self-Enforcing Environmental Agreements
Building Climate Coalitions on Preferential Free Trade Agreements
Simla and Preferential Tariffs.
The Impact of Preferential Trade Agreements on the Margins of International Trade
Some Advantages of Preferential Tariffs.
The Indian Government on Preferential Tariffs and Retaliation.
Safeguard provisions in preferential trade agreements
Preferential Trade Agreements and Global Sourcing
Digital trade integration in preferential trade agreements
ASEAN’s Preferential Trade Agreements (PTA) strategy
India and Preferential Tariffs. From the Indian Point of View.
Trade tariffs and self-enforcing environmental agreements
Trade Tariffs and Self-Enforcing Environmental Agreements
Building Climate Coalitions on Preferential Free Trade Agreements
Simla and Preferential Tariffs.
The Impact of Preferential Trade Agreements on the Margins of International Trade
Some Advantages of Preferential Tariffs.
The Indian Government on Preferential Tariffs and Retaliation.
Safeguard provisions in preferential trade agreements
Preferential Trade Agreements and Global Sourcing
Digital trade integration in preferential trade agreements
ASEAN’s Preferential Trade Agreements (PTA) strategy
India and Preferential Tariffs. From the Indian Point of View.
Trade tariffs and self-enforcing environmental agreements
Trade Tariffs and Self-Enforcing Environmental Agreements