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Free-trade areas and special protection

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  • Chrysostomos Tabakis

Abstract

This paper investigates the impact of 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.

Suggested Citation

  • Chrysostomos Tabakis, 2015. "Free-trade areas and special protection," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(8), pages 1054-1076, December.
    • Handle: RePEc:taf:jitecd:v:24:y:2015:i:8:p:1054-1076
    DOI: 10.1080/09638199.2014.999817
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    References listed on IDEAS

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    1. Bagwell, Kyle & Staiger, Robert W., 1997. "Multilateral tariff cooperation during the formation of customs unions," Journal of International Economics, Elsevier, vol. 42(1-2), pages 91-123, February.
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    Cited by:

    1. Tabakis, Chrysostomos & Zanardi, Maurizio, 2019. "Preferential trade agreements and antidumping protection," Journal of International Economics, Elsevier, vol. 121(C).
    2. Tovar, Patricia, 2019. "Preferential and multilateral liberalization: Evidence from Latin America’s use of tariffs, antidumping and safeguards," Journal of Development Economics, Elsevier, vol. 141(C).

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