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We show that multilateral tariff binding liberalization substantially impacts the nature and extent of Preferential Trade Agreement (PTA) formation. First, it shapes the nature of forces constraining expansion of Free Trade Agreements (FTAs). The constraining force is a free riding incentive of...
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We study, theoretically and empirically, how countries choose intra-bloc tariffs and preferential margins when they … to a customs union (where members coordinate external tariffs). Moreover, in customs unions (but not necessarily in free …
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