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Reference: Monika Mrazova, David Vines and Ben Zissimos, (2008). Is the WTO's Article XXIV Bad?. Department of Economics (University of Oxford).Citable link to this page:

 

Is the WTO's Article XXIV Bad? Series: Discussion paper series

Abstract: This paper shows that the WTO's Article XXIV increases the likelihood of free trade, but may worsen world welfare when free trade is not reached and customs unions (CUs) form. We consider a model of many countries. Article XXIV prevents a CU from raising its common external tariff, which makes CU formation less attractive and explains why free trade is more likely. In an equilibrium where two CU's do form, one is necessarily larger than the other. We show that Article XXIV has a composition effect on CU formation, whereby CUs are (endogenously) less asymmetric in size so more goods are subject to tariff distortions as they move between CUs; thus Article XXIV may be 'bad' for world welfare.

Bibliographic Details

Issue Date: 2008Identifiers

Urn: uuid:9982828e-fb70-44ba-a414-1bbf092c0ec2 Item Description

Type: info:eu-repo/semantics/workingPaper;

Language: en

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Author: Monika Mrazova - - - David Vines - - - Ben Zissimos - - - - Bibliographic Details Issue Date: 2008 - Identifiers Urn: uuid:998282

Source: https://ora.ox.ac.uk/objects/uuid:9982828e-fb70-44ba-a414-1bbf092c0ec2



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