Free-Trade Areas and Special Protection

43 Pages Posted: 5 Dec 2013

See all articles by Chrysostomos Tabakis

Chrysostomos Tabakis

KDI School of Public Policy and Management

Date Written: October 2013

Abstract

This paper investigates the impact of regional free-trade-area (FTA) agreements on the ability of countries to multilaterally cooperate within an economic environment characterized by trade-‡flow volatility. We show that the parallel formation of different FTAs leads to a gradual but permanent easing of multilateral trade tensions. In particular, we demonstrate that the emergence of the FTAs will be accompanied by a decline in global “special”-protection activity, such as safeguard or anti-dumping initiations, but will have less significant implications for most-favored-nation tariffs, or "“normal" ”trade protection.

JEL Classification: F13, F15

Suggested Citation

Tabakis, Chrysostomos, Free-Trade Areas and Special Protection (October 2013). Available at SSRN: https://ssrn.com/abstract=2363392 or http://dx.doi.org/10.2139/ssrn.2363392

Chrysostomos Tabakis (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

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