Ketterer, Tobias, Bernhofen, Daniel and Milner, Chris (2014) Preferences, rent destruction and multilateral liberalization: the building block effect of CUSFTA. Journal of International Economics, 92 (1). pp. 63-77. ISSN 0022-1996
Full text not available from this repository.Abstract
If a free trade agreement (FTA) is characterized by the exchange of market access with a large and competitive trading partner, the agreement can cause a leakage of protectionist benefits to domestic industry from lobbying against external tariff cuts. This rent destruction effect of an FTA can free policy makers to be more aggressive in multilateral tariff cuts. We argue that the Canadian–US free trade agreement (CUSFTA) provides an ideal policy experiment to link this mechanism to the data. Exploring the determinants of Canada's tariff cuts at the 8-digit HS product level, we find that CUSFTA acted as an additional driver of Canadian multilateral tariff reductions during the Uruguay Round.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.journals.elsevier.com/journal-of-intern... |
| Additional Information: | © 2013 Elsevier B.V. |
| Divisions: | Grantham Research Institute |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
| Date Deposited: | 10 Feb 2014 12:12 |
| Last Modified: | 04 Apr 2024 23:24 |
| Projects: | F/00 114/AM |
| Funders: | Leverhulme Trust |
| URI: | http://eprints.lse.ac.uk/id/eprint/55609 |
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