The Common External Tariff in a Customs Union: Voting, Logrolling, and National Government Interests

Abstract:     
Missing from the analysis of customs unions has been a consideration of collective decision-making by countries regarding the union's common trade policy. In the case of the common European external tariff, how governments voted was not public information. This paper uses a unique dataset to derive member states' tariff preferences, which are then used to establish the decision rule before 1987, when individual governments had veto power. Results indicate a principle of unanimity, as well as the presence of logrolling. The political equilibrium for the common external tariff is also illustrated to have shifted as a result of union enlargements.

Keywords: Collective decisions, tariff preferences, political economy, European Community, decisive voter

JEL Classifications: D72, F13, F14

Working Paper Series