Foreign trade effect of Slovakia accession to the EU custom union

The paper deals with some aspects of foreign trade impact of EU's custom union accession of Slovakia. It issues from the Jacob Viner's hypothesis on trade creation and trade diversion, and proves this hypothesis through chosen instrumentarium. Analysis leads to conclusion that due to gradual removing of tariff trade barriers mainly of non-agricultural commodities in the framework of free trade area can lead not only to tendency of inter-industry, as Viner assumed, but still in more extent towards intra-industry trade tendency based on international technological specialization. This was the Slovakia's case. After the EU accession it is expected trade creation with non-preferential third countries in non-agricultural commodities and with trade diversion in agricultural commodities. Jacob Viner's hypothesis should be completed and wider interpreted.

Keywords: trade creation, international trade specialization, trade diversion, non preferential and preferential third countries, inter and intra-industry trade, unit cost and price advantages