Does regionalism affect trade liberalization toward non-members ?
By: Antoni Estevadeordal, Caroline Freund, Emanuel Ornelas.
Contributors: Freund, Caroline L.; Ornelas, Emanuel.; World Bank.
Series: Policy research working paper -- 4751; Policy research working papers (Online) -- 4751.
Publisher: World Bank
Published: 2008
Place of publication: [Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Tariff preferences -- Latin America; Favored nation clause -- Latin America
Description: "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. "--World Bank web site.
Notes: Title from PDF file as viewed on 5/12/2009.

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