Free Trade Agreements Boost Tariff Cooperation Among Member States
The article explores how free trade agreements affect countries' trade policies. By analyzing data from 170 countries and 177 FTAs, the researchers found that members of FTAs tend to cooperate on tariffs. Countries with good political relations work together more on setting external tariffs after joining FTAs. In fact, an increase in the market share of FTA partners' firms is linked to a 3% rise in external tariffs.