Advertisement

Compensatory Mechanisms

Chapter
  • 46 Downloads

Abstract

Even if all countries benefit from a free trade area, they do not necessarily all benefit to the same degree. Compensatory mechanisms are used to transfer some of the gains from regional trade liberalisation to those countries that benefit less from the new arrangements. The issue of compensation can become politically important in the negotiation of regional trade agreements, especially in the situation where one economy dominates, as in Southern Africa.

Keywords

European Union Regional Trade Custom Union Free Trade Area Trade Diversion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Commonwealth Secretariat 2000

Authors and Affiliations

There are no affiliations available

Personalised recommendations