The theory of the customs union and its relevance for Mexico facing the Free Trade Agreement with the United States and Canada

  • José Romero El Colegio de México
Keywords: NAFTA, duty, economic development

Abstract

This paper reviews aspects of the theory of Custom Unions which are relevant for Mexico given the possible North American Free Trade Agreement. The following themes are discussed: effects of trade creation and trade diversion; production effects; terms of trade effects; common external tariff; economies of scale; unilateral tariff reduction; foreign firms in the formation of custom unions; and custom unions and economic development.

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Published
01-07-1991
How to Cite
RomeroJ. (1991). The theory of the customs union and its relevance for Mexico facing the Free Trade Agreement with the United States and Canada. Estudios Económicos, 6(2), 231-270. https://doi.org/10.24201/ee.v6i2.311
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