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The objective of this paper is to examine the effects of political asymmetries on a FTA and a CU. I have shown that either a higher lobbying sensitivity to the foreign firm or a more susceptibility of politicians to lobbying are sufficient to lead to a higher tariff protection at the individual country level. Under a CU, firms may dislike any form of political dominance in the common trade policy unless politicians do not discriminate against foreign lobbyists significantly. In contrast, under a FTA, if politicians are very susceptible to lobbying, the results appear to be ambiguous.

On the Lobbying Behavior Response to Political Asymmetries in International Economic Integration