Deepening of Regional Integration and Multilateral Trade Agreements

L. Winters, Eric Bond and Constantinos Syropoulos ()

No 2480, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We construct a three-country, two-bloc, multi-product trade model in which tariff agreements between customs union members are binding whereas inter-bloc tariff agreements are self-enforcing. Our main objective is to explore how the liberalization of trade between customs union members (i.e. the deepening of regional integration) affects the sustainability of tariff agreements with the rest of the world (ROW). We derive conditions under which Kemp-Wan (1976) adjustments in the external tariffs of union members result in self-enforcing tariff agreements with ROW and then use these adjustments to evaluate the general tariff-setting incentives of the two trading blocs.

Keywords: Regional integration; Sustainable tariff agreements; Kemp-wan tariff adjustments; Europe '1992' (search for similar items in EconPapers)
JEL-codes: F02 F13 F15 (search for similar items in EconPapers)
Date: 2000-08
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Deepening of regional integration and multilateral trade agreements (2001)
Working Paper: Deepening of Regional Integration and Multilateral Trade Agreements (1996)
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