Intra-bloc tariffs and preferential margins in trade agreements

Ornelas, Emanuel; Tovar, Patricia

doi:10.1016/j.jinteco.2022.103643

Cited by 2 publications

(2 citation statements)

References 70 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, we should note from Saggi et al. (2019) and Ornelas and Tovar (2022) that some PTAs are formed under the Enabling Clause, and countries do not eliminate intra‐bloc tariffs.…”

mentioning

confidence: 86%

“…19 Consistent with Article XXIV of the GATT, we assume that intra-bloc tariffs are eliminated in a PTA. However, we should note from Saggi et al (2019) and Ornelas and Tovar (2022) that some PTAs are formed under the Enabling Clause, and countries do not eliminate intrabloc tariffs. 21 For tariff complementarity discussions, see Staiger (1997a, 1999), Bond et al (2004), and Saggi and Yildiz (2009).…”

Section: Endnotesmentioning

confidence: 99%

See 1 more Smart Citation

Dynamic preferential trade agreement formation and the role of political economy

Chi,

Yildiz

2024

Economic Inquiry

View full text Add to dashboard Cite

Using a dynamic preferential trade agreement (PTA) formation model, we show that political biases in exporting and import‐competing sectors substantially impact the extent of PTA formation. While both exclusion and free riding incentives constrain the expansion to global free trade in a free trade agreement (FTA) game, only the former incentive arises in a customs union (CU) game. When we endogenize the choice between FTAs and CUs, the tension between the flexibility benefit of FTAs and the coordination benefit of CUs reveals that FTAs always serve as PTA building blocks while CUs may serve as PTA building or stumbling blocks.

show abstract

“…However, we should note from Saggi et al. (2019) and Ornelas and Tovar (2022) that some PTAs are formed under the Enabling Clause, and countries do not eliminate intra‐bloc tariffs.…”

mentioning

confidence: 86%