The clash of liberalizations: Preferential vs. multilateral trade liberalization in the European Union

• 成果类型: Article
• 署名作者: Karacaovali, Baybars; Limao, Nuno
• 署名单位: University System of Maryland; University of Maryland College Park; Fordham University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2007.07.003
• 发表日期: 2008
• 页码: 299-327
• 关键词: preferential trade agreements; Customs unions; multilateral trade negotiations; MFN tariff concessions; RECIPROCITY

摘要

Preferential trade agreements (PTAs) are characterized by liberalization with respect to only a few partners and thus they can potentially clash with, and retard multilateral trade liberalization (MTL). Yet there is almost no systematic evidence on whether the numerous existing PTAs actually affect MTL. We provide a model showing that PTAs hinder MTL unless they entail accession to a customs union with internal transfers. Using product-level tariffs negotiated by the European Union (EU) in the last two multilateral trade rounds we find that several of its PTAs have clashed with its MTL. However, this effect is absent for EU accessions. Moreover, we provide new evidence on the political economy determinants of trade policy in the EU. (c) 2007 Elsevier B.V. All rights reserved.