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GTAP Resource #1344

"Economic Implications for Turkey of a Customs Union with the European Union"
by Harrison, Glenn, Thomas Rutherford and David G. Tarr

With a CGE model, we quantify the impact of the Customs Union between Turkey and the European Union (EU). Since the average tariff on non-agricultural imports will be less than 2 percent, the trade diversion costs of the Customs Union are quite small. Improved access to third country markets (through reciprocal preferential access agreements of the EU) results in the largest gains from the Customs Union, estimated overall to be about 1–1.5 percent of Turkish GDP. Applying the VAT uniformly (rather than raising it to compensate for the tariff revenue loss) will increase the welfare gain from joining the EU.

Also available as the journal article at

Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Published
By/In: European Economic Review, Vol. 41, Nos. 3-5, 861-870
Date: 1997
Created: Tarr, D. (8/8/2003)
Updated: Tarr, D. (8/28/2007)
Visits: 1,994
- Preferential trading arrangements

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