Abstract
Customs classification is an important element in a country's trade policy. How a good is classified can affect the rate of duty that applies, the coverage of non-tariff barriers, and the formulation and application of rules of origin. Reclassifications can occur because of the introduction of a new product, but also because of protectionist motives. This paper is the first attempt at explaining these reclassifications. Focusing on the European Union, I examine whether the number of tariff lines in an industry result from the introduction of new products or from protectionist lobbying. The analysis focuses on 90 manufacturing industries over 12 years. Results suggest that protectionist lobbying does play a role in explaining changes in the EU's customs classification.
Similar content being viewed by others
References
European Communities. (1999). Serving the European Union: A Citizen's Guide to the Institutions of the European Union. Luxembourg: Office for Official Publications of the European Communities.
Findlay, R., & Wellisz, S. (1982). Endogenous tariffs, the political economy of trade restrictions, and welfare. In: J. Bhagwati (Ed.), Import Competition and Response. Chicago: University of Chicago Press.
Fliess, B. A., & Sauvé, P. (1998). Of Chips, Floppy Disks and Great Timing: Assessing the WTO Information Technology Agreement. Paris: Institut Franccais des Relations Internationales.
Gawande, K., & Krishna, P. (2003). The political economy of trade policy: Empirical approaches. In E. Kwan Choi, & J. Harrigan (Eds), Handbook of International Trade. Oxford: Basil-Blackwell.
Grossman, G., & Helpman, E. (1994). Protection for sale. American Economic Review, 84, 833–850.
Hall, Bronwyn H., Jaffe, A. B. & Trajtenberg, M. (2001). The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools. NBER Working Paper, 8498.
Hanson, B. T. (1998). What happened to fortress Europe? External trade policy liberalization in the european union. International Organization, 52(1), 55–79.
Hillman, Arye L. (1989). The Political Economy of Protection. Chur: Harwood Academic Publishers.
Hillman, Arye L. (1991). Protection, politics, and market structure. In: E. Helpman & A. Razin (Eds.), International Trade and Trade Policy. Cambridge, MA: MIT Press.
Hillman, A. L., Van Long, N., & Soubeyran. A. (2001). Protection, lobbying and market structure. Journal of International Economics, 54, 383–409.
Krugman, P. (1981). Intraindustry specialization and the gains from trade. Journal of Political Economy, 89(5), 959–973.
Marvel, H. P., & Ray, E. J. (1983). The Kennedy Round: Evidence on the Regulation of International trade in the United States. American Economic Review, 73 (1), 190–197.
Mayer, W. (1984). Endogenous Tariff Formation. American Economic Review, 74 (5), 970–085.
Messerlin, P. A. (2001). Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s. Washington: Institute for International Economics.
Meunier, S. (2000). What single voice? European institutions and EU-U.S. trade negotiations. International Organization, 54(1), 103–135.
Olarreaga, M., Soloaga, I. & Winters, L. A. (1999). What's behind Mercosur's common external tariff? World Bank Policy Research Working Paper, 2231.
OECD. (1994). The Measurement of Scientific and Technological Activities: Using Patent Data as Science and Technology Indicators. Paris: Organisation for Economic Co-operation and Development.
Pecorino, P. (1998). Is there a free-rider problem in lobbying? Endogenous tariffs, trigger strategies, and the number of firms. American Economic Review, 88(3), 652–660.
Potters, J., & Sloof, R. (1996). Interest groups: A survey of empirical models that try to assess their influence. European Journal of Political Economy, 12, 403–442.
Rodrik, D. (1995). Political Economy of Trade Policy. In: G. Grossman, & K. Rogoff (Eds.), Handbook of International Economics, vol. 3. Amsterdam: North Holland.
Schueren, P. V. (1997). Tariff classification: An Instrumint for EC trade policy. European Foreign Affairs Review, 2(2), 255–275.
Tavares, S. (2005). Deeper tntegration and voting on the common european external rariff. Unpublished manuscript.
Trefler, D. (1993). Trade liberalization and the theory of endogenous protection: An econometric study of U.S. import policy. Journal of Political Economy, 101(1), 138–160.
Vermulst, E. (1994). EC customs classification rules: Should ice-cream melt? Michigan Journal of International Law, 15(4), 1241–1325.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Tavares, S.C. The political economy of the European customs classification. Public Choice 129, 107–130 (2006). https://doi.org/10.1007/s11127-005-9012-x
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11127-005-9012-x