Non-preferential Trading Clubs

Pascalis Raimondos-Møller, Alan D. Woodland

Research output: Contribution to journalJournal articleResearchpeer-review


This paper examines the welfare implications of non-discriminatory tariff reforms by a subset of countries, which we term a non-preferential trading club. We show that there exist coordinated tariff reforms, accompanied by appropriate income transfers between the member countries, that unambiguously increase the welfare of these countries while leaving the welfare of non-members unaltered. In terms of economic policy implications, our results show that there exist regional, MFN-consistent arrangements that lead to Pareto improvements in world welfare.
Original languageEnglish
JournalJournal of International Economics
Issue number1
Pages (from-to)79-91
Publication statusPublished - 2006

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