Estevadeordal, AntoniFreund, CarolineOrnelas, Emanuel2012-06-012012-06-012008-10https://hdl.handle.net/10986/6936This paper examines the effect of regionalism on unilateral trade liberalization using industry-level data on applied most-favored nation tariffs and bilateral preferences for ten Latin American countries from 1990 to 2001. The findings show that preferential tariff reduction in a given sector leads to a reduction in the external (most-favored nation) tariff in that sector. External liberalization is greater if preferences are granted to important suppliers. However, these "complementarity effects" of preferential liberalization on external liberalization do not arise in customs unions. Overall, the results suggest that concerns about a negative effect of preferential liberalization on external trade liberalization are unfounded.CC BY 3.0 IGOBALANCE OF PAYMENTSBARGAINING POWERBILATERAL AGREEMENTSBILATERAL TRADEBILATERAL TRADE AGREEMENTSBLOC MEMBERSCOMPARATIVE ADVANTAGECONCESSIONCONSUMER SURPLUSCURRENCYCUSTOM UNIONSCUSTOMSCUSTOMS UNIONCUSTOMS UNIONSDEVELOPING COUNTRIESDEVELOPING COUNTRY TARIFFSDOMESTIC INDUSTRYDOMESTIC PRICEDUTY-FREE TREATMENTECONOMIC COMMUNITYECONOMIC INTEGRATIONENDOGENOUS TARIFFENDOGENOUS TARIFF FORMATIONESCAPE CLAUSEEUROPEAN UNIONEXPORT SECTOREXPORT SUPPLYEXPORTERSEXPORTSEXTERNAL LIBERALIZATIONEXTERNAL TARIFFEXTERNAL TARIFF STRUCTUREEXTERNAL TARIFFSEXTERNAL TRADEEXTERNAL TRADE BARRIERSEXTERNAL TRADE LIBERALIZATIONEXTERNAL TRADE POLICIESFINANCIAL SUPPORTFORMATION OF CUSTOMS UNIONSFREE ACCESSFREE TRADEFREE TRADE AGREEMENTFREE TRADE AGREEMENTSFREE TRADE AREAFREE TRADE AREASFREE TRADE ZONESFREE TREATMENTFREE-TRADE AGREEMENTSGENERAL AGREEMENT ON TARIFFSGENERAL EQUILIBRIUMGLOBAL LIBERALIZATIONGLOBAL TRADINGHARMONIZATIONHIGH TARIFFSHOME COUNTRYHOME GOVERNMENTIMPORT DEMANDIMPORT SHAREIMPORT TARIFFIMPORT-COMPETING SECTORIMPORT-COMPETING SECTORSIMPORTSINTEGRATING COUNTRIESINTERNAL FREE TRADEINTERNAL LIBERALIZATIONINTERNAL TARIFFSINTERNAL TRADEINTERNAL TRADE BARRIERSINTERNATIONAL BANKINTERNATIONAL ECONOMICSINTERNATIONAL STANDARDINTERNATIONAL TRADEINTERNATIONAL TRADE POLICYLABOR STANDARDSLEVEL OF PROTECTIONLOBBYINGMARKET ACCESSMARKET POWERMEMBER COUNTRIESMFN TARIFFSMULTILATERAL AGREEMENTSMULTILATERAL FREE TRADEMULTILATERAL LEVELMULTILATERAL LIBERALIZATIONMULTILATERAL NEGOTIATIONSMULTILATERAL SYSTEMMULTILATERAL TARIFF REDUCTIONMULTILATERAL TARIFFSMULTILATERAL TRADEMULTILATERAL TRADE LIBERALIZATIONMULTILATERALISMNON-MEMBER COUNTRIESNON-TRADE AREASOPEN TRADEOPTIMAL TARIFFOPTIMAL TARIFFSPERFECT COMPETITIONPOLICY RESEARCHPOLITICAL ECONOMYPOLITICALLY SENSITIVE SECTORSPREFERENCE EROSIONPREFERENTIAL ACCESSPREFERENTIAL AGREEMENTSPREFERENTIAL LIBERALIZATIONPREFERENTIAL MARGINPREFERENTIAL MARGINSPREFERENTIAL PARTNERSPREFERENTIAL RATEPREFERENTIAL RATESPREFERENTIAL REDUCTIONPREFERENTIAL REDUCTIONSPREFERENTIAL TARIFFPREFERENTIAL TARIFF REDUCTIONPREFERENTIAL TARIFFSPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPREFERENTIAL TRADE ARRANGEMENTPREFERENTIAL TRADINGPREFERENTIAL TRADING AREASPREFERENTIAL TRADING ARRANGEMENTSPREFERENTIAL TREATMENTPROTECTION LEVELSPROTECTIONISMPROTECTIONISTRECIPROCITYREGIONAL AGREEMENTREGIONAL AGREEMENTSREGIONAL INSTITUTIONSREGIONAL INTEGRATIONREGIONAL PARTNERSREGIONAL TRADEREGIONAL TRADE AGREEMENTREGIONAL TRADE AGREEMENTSREGIONAL TRADE BLOCSREGIONAL TRADE LIBERALIZATIONREGIONALISMREGIONALIZATIONRULES OF ORIGINSIDE AGREEMENTSSOURCINGSTANDARD ERRORSTARIFF BINDINGSTARIFF CHANGESTARIFF CONCESSIONSTARIFF CREATIONTARIFF CUTSTARIFF DATATARIFF DIVERSIONTARIFF FORMATIONTARIFF INCREASESTARIFF LEVELSTARIFF LIBERALIZATIONTARIFF LINETARIFF PREFERENCESTARIFF RATESTARIFF REDUCTIONSTARIFF REVENUETERMS OF TRADETERMS OF TRADE LOSSTERMS OF TRADE LOSSESTRADE AGREEMENTTRADE BLOCTRADE BLOCSTRADE CHANGESTRADE CONCESSIONSTRADE CREATINGTRADE DATATRADE DIVERSIONTRADE LIBERALIZATIONTRADE LOSSESTRADE OBJECTIVESTRADE OPENNESSTRADE PARTNERTRADE POLICIESTRADE POLICYTRADE PREFERENCESTRADE REFORMTRADE ROUNDTRADE SYSTEMTRADE THEORYTRADING BLOCSTRADING PARTNERSUNILATERAL LIBERALIZATIONUNILATERAL TRADEUNILATERAL TRADE LIBERALIZATIONWAGE RATEWORLD ECONOMYWORLD MARKETSWORLD PRICEWORLD PRICESWORLD TRADEWORLD TRADE ORGANIZATIONWORLD TRADING SYSTEMWorld Bankhttps://doi.org/10.1596/1813-9450-4751