Unilateral tariff cuts: a theory

Olena Sokolovska

MPRA Paper from University Library of Munich, Germany

Abstract: In order to analyze the Ukraine-EU trade arrangement in the context of modern theory of non-reciprocal trade agreements we provide brief examination of some theoretical approaches and practical implications of unilateral tariff preference schemes and examine current situation with tariff regulation in Ukraine-EU commodity trade. We found that unilateral tariff reduction or elimination under these schemes could lead either to trade creation or trade diversion, depending firstly form the presence of market power of beneficiary country. The obtained results could be used for further estimation of impact of non-reciprocal reduction of tariffs by EU governments on Ukrainian export flows

Keywords: tariff preferences; trade policy; unilateral trade liberalization (search for similar items in EconPapers)
JEL-codes: F13 H20 H3 H30 (search for similar items in EconPapers)
Date: 2016-03
New Economics Papers: this item is included in nep-cis and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Unilateral tariff cuts: a theory (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:70493

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