Munich Personal RePEc Archive

Unilateral tariff cuts: a theory

Sokolovska, Olena (2016): Unilateral tariff cuts: a theory. Forthcoming in:

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Abstract

In order to analyze the Ukraine-EU trade arrangement in the context of modern theory of non-reciprocal trade agreements we provide brief examination of some theoretical approaches and practical implications of unilateral tariff preference schemes and examine current situation with tariff regulation in Ukraine-EU commodity trade. We found that unilateral tariff reduction or elimination under these schemes could lead either to trade creation or trade diversion, depending firstly form the presence of market power of beneficiary country. The obtained results could be used for further estimation of impact of non-reciprocal reduction of tariffs by EU governments on Ukrainian export flows

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