Contents

Customs Unions and Special Protection

Tabakis, Chrysostomos

Abstract

This paper investigates the impact of customs unions (CUs) on the ability of countries to multilaterally cooperate within an economic environment characterized by trade-flow volatility. We find that the initiation of CU talks results in an easing of multilateral trade tensions, especially with regard to the employment of "special"-protection instruments, such as anti-dumping duties or safeguards. However, once the CU agreements come into force, a retreat to a more protectionist trading environment becomes necessary so that multilateral cooperation does not break down. Interestingly, in comparison with the pre-CU world, the utilization of "special"-protection tools in the post-CU world is more severe for "high" import volumes, but is less frequent overall. Moreover, "normal" protection remains low, largely unchanged from the pre-CU era.

Issue Date
2010
Publisher
WALTER DE GRUYTER & CO
DOI
10.2202/1935-1682.2567
Journal Title
The B. E. Journal of Economic Analysis & Policy
ISSN
1935-1682
Language
English
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