Third-Country Effects of Regional Trade Agreements

Third-Country Effects of Regional Trade Agreements

Does regionalism negatively impact non-members? To answer this question, we examine the effect of regional trade agreements (RTAs) on imports from non-members and the tariffs that they face. Using data from six RTAs in Latin America and Europe, we do not find evidence that implementation of the regi...

Full description

Bibliographic Details
Main Author: Freund, Caroline
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Trade Policy
International Trade Organizations F130
Economic Integration F150
Online Access:http://hdl.handle.net/10986/5750
id okr-10986-5750
recordtype oai_dc
spelling okr-10986-57502021-04-23T14:02:23Z Third-Country Effects of Regional Trade Agreements Freund, Caroline Trade Policy International Trade Organizations F130 Economic Integration F150 Does regionalism negatively impact non-members? To answer this question, we examine the effect of regional trade agreements (RTAs) on imports from non-members and the tariffs that they face. Using data from six RTAs in Latin America and Europe, we do not find evidence that implementation of the regional agreements is associated with trade diversion from third countries to regional members. Using detailed industry data on preference margins and most-favoured nation (MFN) tariffs for three trade agreements in Latin America over 12 years, we find that greater preference margins do not significantly reduce imports from third countries. We also look at the effect of preferences on external tariffs. We find evidence that preferential tariff reduction tends to precede the reduction of external MFN tariffs in a given sector, offering evidence of tariff complementarity. Overall, the results suggest that regionalism does not significantly harm non-members. 2012-03-30T07:34:21Z 2012-03-30T07:34:21Z 2010 Journal Article World Economy 03785920 http://hdl.handle.net/10986/5750 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Latin America & Caribbean Europe and Central Asia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Trade Policy
International Trade Organizations F130
Economic Integration F150
spellingShingle Trade Policy
International Trade Organizations F130
Economic Integration F150
Freund, Caroline
Third-Country Effects of Regional Trade Agreements
geographic_facet Latin America & Caribbean
Europe and Central Asia
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description Does regionalism negatively impact non-members? To answer this question, we examine the effect of regional trade agreements (RTAs) on imports from non-members and the tariffs that they face. Using data from six RTAs in Latin America and Europe, we do not find evidence that implementation of the regional agreements is associated with trade diversion from third countries to regional members. Using detailed industry data on preference margins and most-favoured nation (MFN) tariffs for three trade agreements in Latin America over 12 years, we find that greater preference margins do not significantly reduce imports from third countries. We also look at the effect of preferences on external tariffs. We find evidence that preferential tariff reduction tends to precede the reduction of external MFN tariffs in a given sector, offering evidence of tariff complementarity. Overall, the results suggest that regionalism does not significantly harm non-members.
format Journal Article
author Freund, Caroline
author_facet Freund, Caroline
author_sort Freund, Caroline
title Third-Country Effects of Regional Trade Agreements
title_short Third-Country Effects of Regional Trade Agreements
title_full Third-Country Effects of Regional Trade Agreements
title_fullStr Third-Country Effects of Regional Trade Agreements
title_full_unstemmed Third-Country Effects of Regional Trade Agreements
title_sort third-country effects of regional trade agreements
publishDate 2012
url http://hdl.handle.net/10986/5750
_version_ 1764396173712424960

Similar Items