accession of Armenia to the Customs Union and the Single Economic Space.
on Armenia's joining the Customs Union and the Single Economic Space.
One of the important results of the held meeting was approval of the Road Map on Kyrgyzstan's joining the Customs Union. As
When considering the issue of the customs union we first assume that countries 2 and 3 form the union.
In the case of the customs union we consider three cases.
When countries 2 and 3 form the customs union the endowment vactors of the non-union and union become
The welfare of a tariff-imposing country could increase, decrease, or remain the same after it joins a customs union. If the country concerned is a small country, the outcome depends on the welfare-reducing trade diversion effect and welfare-improving trade creation effect of the customs union.
Next suppose that country A forms a customs union with country U.
Next suppose country A forms a customs union with country U.
Suppose that country A initially imposes a non-preferential tariff, T, before a customs union. The price of good X in country A is [P'.sub.1].
Next, suppose that country A joins a customs union with country B.
Next, suppose that country A and country B form a customs union. Country A's tariff on imports from country B will be eliminated.
The effects of the customs union on country A's welfare can be shown as follows.