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Tariff Eliminating Staging Categories and The U.S.-Central America-Dominican Republic Free Trade Agreement

Don Clark

Economia Internazionale / International Economics, 2007, vol. 60, issue 4, 475-488

Abstract: This paper investigates determinants of tariff-cut staging categories that emerged under the recently negotiated U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). Staging categories are explained in terms of product characteristics, predicted by the Grossman-Helpman (1995) political-economy framework, that influence an industry’s ability to exploit political outcomes associated with free trade agreement (FTA) negotiations. While most products became or continued to be duty-free upon implementation of the CAFTA-DR agreement, industries producing other import sensitive products of export interest to countries in Central America and the Dominican Republic were able to secure prolonged tariff phase-out schedules or avoid tariff cuts. Results indicate the same protectionist forces that influence the overall interindustry pattern of protection were also able to shape the outcome of the CAFTA-DR negotiations.

Keywords: CAFTA-DR; Free Trade Agreement; tariff staging categories (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2007
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