Regional tariff impacts, 2020-2025

An econometric analysis of intra-regional trade flows following the phased tariff reductions of the last five years.

Using panel data from twelve customs authorities, this study measures the trade-creation and trade-diversion effects of the 2020-2025 tariff reduction schedule.

Results show a 14 percent increase in intra-regional manufactured goods trade, concentrated in textiles and processed agricultural products, alongside modest revenue losses for smaller member states that the report argues should be offset through a shared compensation mechanism.