Resource title

Harmonizing external quotas in an FTA: a step backward?

Resource image

image for OpenScout resource :: Harmonizing external quotas in an FTA: a step backward?

Resource description

This paper explores how political-economy forces shape quantitative barriers against the rest of the world in an FTA. The authors whow that whereas the dilution of lobbying power in an FTA typically leads to a relaxation of external quotas, this result is likely to be overturned as integration deepens. In particular, they show that cooperation among member countries on the level of their external quotas, cross-border lobbying by import-competing interests in the free-trade area, and the consolidation of national external quotas into a single one, all lead to stiffer restrictions against imports from the rest of the world. They also show tat unlike tariffs, endogenous quotas are not crucially affected by the presence of rules of origin.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp1998/98-75.pdf

Resource license

Copyright INSEAD. All rights reserved