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Regionalism and Multilateral Tariff Co-operation

Kyle Bagwell and Robert Staiger

Chapter 7 in International Trade Policy and the Pacific Rim, 1999, pp 157-190 from Palgrave Macmillan

Abstract: Abstract In recent years, there has been a proliferation of regional trading agreements. What are the consequences of such agreements for multilateral tariff co-operation? Are regional agreements ‘building blocks’ or ’stumbling blocks’ for the multilateral liberalization process? In this chapter, we develop a formal model that identifies important effects that regional agreements may have on multilateral tariff co-operation; and we find that the consequences of such agreements for multilateral tariff co-operation need not be clear-cut: regional agreements can produce effects which complement multilateral liberalization efforts, and can also produce effects which undermine the multilateral liberalization process. While we do not provide a conclusive answer to the questions posed above, we outline a framework of effects which can enable a better understanding of the possible impact of regional agreements on multilateral tariff co-operation. We also describe circumstances in which the net impact of the various effects can be determined.

Date: 1999
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DOI: 10.1007/978-1-349-14543-0_7

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