Does Regionalism Affect Trade Liberalization toward Non-Members?

This paper examines the effect of regionalism on unilateral trade liberalization using industry-level data on applied most-favored nation tariffs and bilateral preferences for ten Latin American countries from 1990 to 2001. The findings show that preferential tariff reduction in a given sector leads to a reduction in the external (most-favored nation) tariff in that sector. External liberalization is greater if preferences are granted to important suppliers. However, these "complementarity effects" of preferential liberalization on external liberalization do not arise in customs unions. Overall, the results suggest that concerns about a negative effect of preferential liberalization on external trade liberalization are unfounded.

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Bibliographic Details
Main Authors: Estevadeordal, Antoni, Freund, Caroline, Ornelas, Emanuel
Format: Policy Research Working Paper biblioteca
Language:English
Published: World Bank, Washington, DC 2008-10
Subjects:BALANCE OF PAYMENTS, BARGAINING POWER, BILATERAL AGREEMENTS, BILATERAL TRADE, BILATERAL TRADE AGREEMENTS, BLOC MEMBERS, COMPARATIVE ADVANTAGE, CONCESSION, CONSUMER SURPLUS, CURRENCY, CUSTOM UNIONS, CUSTOMS, CUSTOMS UNION, CUSTOMS UNIONS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY TARIFFS, DOMESTIC INDUSTRY, DOMESTIC PRICE, DUTY-FREE TREATMENT, ECONOMIC COMMUNITY, ECONOMIC INTEGRATION, ENDOGENOUS TARIFF, ENDOGENOUS TARIFF FORMATION, ESCAPE CLAUSE, EUROPEAN UNION, EXPORT SECTOR, EXPORT SUPPLY, EXPORTERS, EXPORTS, EXTERNAL LIBERALIZATION, EXTERNAL TARIFF, EXTERNAL TARIFF STRUCTURE, EXTERNAL TARIFFS, EXTERNAL TRADE, EXTERNAL TRADE BARRIERS, EXTERNAL TRADE LIBERALIZATION, EXTERNAL TRADE POLICIES, FINANCIAL SUPPORT, FORMATION OF CUSTOMS UNIONS, FREE ACCESS, FREE TRADE, FREE TRADE AGREEMENT, FREE TRADE AGREEMENTS, FREE TRADE AREA, FREE TRADE AREAS, FREE TRADE ZONES, FREE TREATMENT, FREE-TRADE AGREEMENTS, GENERAL AGREEMENT ON TARIFFS, GENERAL EQUILIBRIUM, GLOBAL LIBERALIZATION, GLOBAL TRADING, HARMONIZATION, HIGH TARIFFS, HOME COUNTRY, HOME GOVERNMENT, IMPORT DEMAND, IMPORT SHARE, IMPORT TARIFF, IMPORT-COMPETING SECTOR, IMPORT-COMPETING SECTORS, IMPORTS, INTEGRATING COUNTRIES, INTERNAL FREE TRADE, INTERNAL LIBERALIZATION, INTERNAL TARIFFS, INTERNAL TRADE, INTERNAL TRADE BARRIERS, INTERNATIONAL BANK, INTERNATIONAL ECONOMICS, INTERNATIONAL STANDARD, INTERNATIONAL TRADE, INTERNATIONAL TRADE POLICY, LABOR STANDARDS, LEVEL OF PROTECTION, LOBBYING, MARKET ACCESS, MARKET POWER, MEMBER COUNTRIES, MFN TARIFFS, MULTILATERAL AGREEMENTS, MULTILATERAL FREE TRADE, MULTILATERAL LEVEL, MULTILATERAL LIBERALIZATION, MULTILATERAL NEGOTIATIONS, MULTILATERAL SYSTEM, MULTILATERAL TARIFF REDUCTION, MULTILATERAL TARIFFS, MULTILATERAL TRADE, MULTILATERAL TRADE LIBERALIZATION, MULTILATERALISM, NON-MEMBER COUNTRIES, NON-TRADE AREAS, OPEN TRADE, OPTIMAL TARIFF, OPTIMAL TARIFFS, PERFECT COMPETITION, POLICY RESEARCH, POLITICAL ECONOMY, POLITICALLY SENSITIVE SECTORS, PREFERENCE EROSION, PREFERENTIAL ACCESS, PREFERENTIAL AGREEMENTS, PREFERENTIAL LIBERALIZATION, PREFERENTIAL MARGIN, PREFERENTIAL MARGINS, PREFERENTIAL PARTNERS, PREFERENTIAL RATE, PREFERENTIAL RATES, PREFERENTIAL REDUCTION, PREFERENTIAL REDUCTIONS, PREFERENTIAL TARIFF, PREFERENTIAL TARIFF REDUCTION, PREFERENTIAL TARIFFS, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENTS, PREFERENTIAL TRADE ARRANGEMENT, PREFERENTIAL TRADING, PREFERENTIAL TRADING AREAS, PREFERENTIAL TRADING ARRANGEMENTS, PREFERENTIAL TREATMENT, PROTECTION LEVELS, PROTECTIONISM, PROTECTIONIST, RECIPROCITY, REGIONAL AGREEMENT, REGIONAL AGREEMENTS, REGIONAL INSTITUTIONS, REGIONAL INTEGRATION, REGIONAL PARTNERS, REGIONAL TRADE, REGIONAL TRADE AGREEMENT, REGIONAL TRADE AGREEMENTS, REGIONAL TRADE BLOCS, REGIONAL TRADE LIBERALIZATION, REGIONALISM, REGIONALIZATION, RULES OF ORIGIN, SIDE AGREEMENTS, SOURCING, STANDARD ERRORS, TARIFF BINDINGS, TARIFF CHANGES, TARIFF CONCESSIONS, TARIFF CREATION, TARIFF CUTS, TARIFF DATA, TARIFF DIVERSION, TARIFF FORMATION, TARIFF INCREASES, TARIFF LEVELS, TARIFF LIBERALIZATION, TARIFF LINE, TARIFF PREFERENCES, TARIFF RATES, TARIFF REDUCTIONS, TARIFF REVENUE, TERMS OF TRADE, TERMS OF TRADE LOSS, TERMS OF TRADE LOSSES, TRADE AGREEMENT, TRADE BLOC, TRADE BLOCS, TRADE CHANGES, TRADE CONCESSIONS, TRADE CREATING, TRADE DATA, TRADE DIVERSION, TRADE LIBERALIZATION, TRADE LOSSES, TRADE OBJECTIVES, TRADE OPENNESS, TRADE PARTNER, TRADE POLICIES, TRADE POLICY, TRADE PREFERENCES, TRADE REFORM, TRADE ROUND, TRADE SYSTEM, TRADE THEORY, TRADING BLOCS, TRADING PARTNERS, UNILATERAL LIBERALIZATION, UNILATERAL TRADE, UNILATERAL TRADE LIBERALIZATION, WAGE RATE, WORLD ECONOMY, WORLD MARKETS, WORLD PRICE, WORLD PRICES, WORLD TRADE, WORLD TRADE ORGANIZATION, WORLD TRADING SYSTEM,
Online Access:http://documents.worldbank.org/curated/en/2008/10/9934137/regionalism-affect-trade-liberalization-toward-non-members
http://hdl.handle.net/10986/6936
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