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Tariff Eliminating Staging Categories and The U.S.-Central America-Dominican Republic Free Trade Agreement

Author

Listed:
  • Clark, Don P.

    (University of Tennessee, Department of Economics)

Abstract

This paper investigates determinants of tariff-cut staging categories that emerged under the recently negotiated U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). Staging categories are explained in terms of product characteristics, predicted by the Grossman-Helpman (1995) political-economy framework, that influence an industry’s ability to exploit political outcomes associated with free trade agreement (FTA) negotiations. While most products became or continued to be duty-free upon implementation of the CAFTA-DR agreement, industries producing other import sensitive products of export interest to countries in Central America and the Dominican Republic were able to secure prolonged tariff phase-out schedules or avoid tariff cuts. Results indicate the same protectionist forces that influence the overall interindustry pattern of protection were also able to shape the outcome of the CAFTA-DR negotiations.

Suggested Citation

  • Clark, Don P., 2007. "Tariff Eliminating Staging Categories and The U.S.-Central America-Dominican Republic Free Trade Agreement," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 475-488.
    • Handle: RePEc:ris:ecoint:0048
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    More about this item

    Keywords

    CAFTA-DR; Free Trade Agreement; tariff staging categories;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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