Third country effects of a discriminatory tariff

dc.contributor.authorDeardorff, Alan V.
dc.date.accessioned2023-04-25T10:28:08Z
dc.date.available2023-04-25T10:28:08Z
dc.date.issued1992-06
dc.description.abstractMotivated by the interests of members of free trade areas in the trade policies undertaken by their FTA partners against outsiders, this paper conducts a partial equilibrium anlysis of the effects of a discriminatory tariff on third countries. Both competitive and segmented market models are considered, in each case using ''low order analysis'' to clarify what would otherwise be a bewildering array of possibilities. Even with that simplification, however, the results are mixed, indicating cases in which a tariff both benefits and harms third country interests. In the most general and symmetric case, the tariff tends to benefit the third country as a whole without materially damaging particular producer interests within it. However in a number of special asymmetric cases, producers, consumers and even the third country as a whole can lose from the tariff. All of this suggests the need for some coordination of external trade policies among members of an FTA.en_US
dc.identifier.urihttp://econspace.ips.lk/handle/789/3686
dc.language.isoenen_US
dc.publisherInstitute of Public Policy studies , Michiganen_US
dc.subjectTariffsen_US
dc.titleThird country effects of a discriminatory tariffen_US
dc.typeOtheren_US
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