Is the GATT/WTO's Article XXIV bad?
The GATT/WTO Article XXIV prevents a customs union (CU) from raising its common external tariff. In this paper, we compare CU formation with and without this Article XXIV constraint. We show, in a multi-country oligopoly model, that for a given CU structure, Article XXIV improves world welfare by lowering trade barriers. However, we also show that Article XXIV has a composition effect on CU formation: it affects the endogenous choice of CUs. By encouraging more symmetric CUs, Article XXIV...[Show more]
|Collections||ANU Research Publications|
|Source:||Journal of International Economics|
|01_Mrazova_Is_the_GATT/WTO's_Article_XXIV_2013.pdf||1.17 MB||Adobe PDF||Request a copy|
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