Estevadeordal, Antoni; Freund, Caroline; Ornelas, Emanuel - Centre for Economic Performance, LSE - 2008
liberalization are unfounded.
Keywords: regionalism, external tariffs, trade liberalization
JEL Classification: F13, F15 … Bhagwati and Panagariya (1999).
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As Kemp and Wan (1976) show, in any customs union there is a set of external tariffs that … leaves welfare of non-
members unaffected. If external tariffs fall below that level, then excluded countries benefit from …