Should the WTO require free trade agreements to eliminate internal tariffs?
Should the WTO require free trade agreements to eliminate internal tariffs?
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世贸组织是否应该要求自由贸易协定消除内部关税?
DOI:
10.1016/j.jinteco.2018.10.003
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发表时间:
2019
影响因子:
3.3
通讯作者:
H. M. Yildiz
中科院分区:
文献类型:
--
作者:
Kamal Saggi;Woan Foong Wong;H. M. Yildiz
In a three-country model of endogenous free trade agreements (FTAs), we study the effects of requiring FTA members to eliminate tariffs on one another, as is essentially stipulated under current WTO rules. We explain why, in the absence of such a requirement, FTAs members impose positive tariffs on each other even when maximizing their joint welfare. We show that requiring FTA members to eliminate internal tariffs induces them tolowertheir external tariffs. Such external trade liberalization by FTA members undermines the prospects of global free trade since itreducesthe non-member's incentive to enter into trade agreements with them.