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Customs Unions and Contingent Protection between Competing Exporters

Tabakis, Chrysostomos

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Abstract

This paper explores the ramifications of customs unions (CUs) for multilateral trade cooperation within an economic environment characterized by trade-volume volatility and in a competing-exporters framework. We demonstrate that the parallel formation of different CUs leads to a gradual but permanent reduction in multilateral trade tensions unlike in the competing-importers case (Tabakis, 2010). More specifically, we show that the formation of the CUs will be accompanied by a decline in contingent protection (such as safeguards or antidumping duties) but will have a less pronounced effect on ìnormalî most-favored-nation tariff protection.

Issue Date
2023-02
Publisher
KDI School of Public Policy and Management
Keywords
Customs Unions; Contingent Protection; Regionalism; Competing Exporters; Trade Diversion
Pages
15
Series Title
KDIS Working Paper 23-02
URI
https://archives.kdischool.ac.kr/handle/11125/53415
URL
https://ssrn.com/abstract=4421945
DOI
10.2139/ssrn.4421945
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