Camou fl aged Trade Agreements

@inproceedings{Appelbaum2015CamouFA,
  title={Camou fl aged Trade Agreements},
  author={Elie Appelbaum and Mark Melatos},
  year={2015}
}
We show that generalized customs unions (CUs), in which members choose different external tariff rates while still maximizing total member welfare, are always welfare-superior to both standard CUs with common external tariffs and free trade areas (FTAs). Since generalized CUs are indistinguishable to FTAs in practice, our analysis implies that some observed… CONTINUE READING