Welfare and the East African common market: some observations

Abstract

This paper is essentially about the production-effect and its fundamental importance in assessing the gains and losses incurred by members of a customs union. There are two basic ingredients in any assessment of the implications that a customs union has for welfare and these are the pre- and post-union patterns of production and tariffs. A customs union involves the extension of the respective members' pre-union geographically discriminary tariffs so as to cover the union area.