search query: @indexterm TRADE AGREEMENTS / total: 235
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| Author: | Panagariya, A. Duttagupta, R. |
| Title: | Politics of free trade areas: tariffs versus quotas |
| Journal: | Journal of International Economics
2002 : DEC, VOL. 58:2, p. 413-427 |
| Index terms: | Trade policy Political economy Free trade Trade agreements |
| Language: | eng |
| Abstract: | The authors compare and contrast the political viability of bilateral Free Trade Area (FTA) Agreements in the presence of tariffs and quotas. Assuming that the government maximizes a weighted sum of welfare and producer profits, they show that the political viability of FTAs varies according to whether trade restrictions take the form of tariffs or quotas. A key result is that whereas an FTA is unambiguously rejected by one of the countries under a tariff, it may be endorsed by both trading partners under a voluntary export quota or import quota that provides equal protection as the tariff. |
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