External Quota Harmonization in FTAs: A Step Backward ?

Details

Serval ID
serval:BIB_6F951E8D769A
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
External Quota Harmonization in FTAs: A Step Backward ?
Journal
Economics and Politics
Author(s)
Cadot O., de Melo J., Olarreaga M.
ISSN
0954-1985
Publication state
Published
Issued date
2002
Peer-reviewed
Oui
Volume
14
Number
3
Pages
259-282
Language
english
Abstract
This paper explores how political-economy forces shape quantitative barriers against the rest of the world in an FTA. We show that whereas the dilution of lobbying power in an FTA typically leads to a relaxation of external quotas, this result is likely to be overturned as integration deepens. In particular, we show that cooperation among member countries on the level of their external quotas, cross-border lobbying by import-competing interests in the free-trade area, and the consolidation of national external quotas into a single one, all lead to stffer restrictions against imports from the rest of the world. We also show that unlike tariffs, endogenous quotas are not crucially a ected by the presence of rules of origin.
Keywords
FTA, Quotas, Political Economy
Create date
19/11/2007 10:32
Last modification date
20/08/2019 14:28
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