Toward a North American customs union: Rules of origin liberalization matters more than a common external tariff for Canada

Patrick Georges

The North American Journal of Economics and Finance, 2008, vol. 19, issue 3, 304-318

Abstract: This paper shows that the general equilibrium impacts on Canadian GDP and welfare, of liberalizing NAFTA Rules of Origin (ROO), largely dominate the small effects of adopting a Common North American External Tariff (CET). Therefore, proposals for a North American CU should not be dismissed solely on the basis that a CET would marginally affect Canada while the negotiation process with the U.S. would be long and difficult--ROO liberalization matters more than a CET for Canada.

Keywords: NAFTA; Customs; union; Rules; of; origin; Common; external; tariff; Computable; general; equilibrium (search for similar items in EconPapers)
Date: 2008
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Working Paper: Toward a North American Customs Union Rules of Origin Liberalization Matters More than a Common External Tariff for Canada (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:19:y:2008:i:3:p:304-318

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