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Trade policy under the GATT-WTO: empirical evidence of the equal treatment rule

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  • Chad Bown

Abstract

A fundamental difference between multilateral trade agreements like the GATT and WTO and a preferential agreement is the multilateral agreements' inclusion of a most-favoured-nation principle. Though MFN requires that members implement policies that provide equal treatment to all GATT-WTO countries, how far do members actually follow the MFN principle when so required? We empirically investigate a sample of GATT-WTO trade disputes and the effect of successful dispute settlement negotiations on the disputed product trade of third country exporters to the defendant country. We document evidence of trade liberalization consistent with defendant countries successfully applying the equal treatment rule.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 37 (2004)
Issue (Month): 3 (August)
Pages: 678-720

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Handle: RePEc:cje:issued:v:37:y:2004:i:3:p:678-720

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Saggi, Kamal, 2009. "The MFN clause, welfare, and multilateral cooperation between countries of unequal size," Journal of Development Economics, Elsevier, vol. 88(1), pages 132-143, January.
  2. McCalman, Phillip, 2010. "Trade policy in a "super size me" world," Journal of International Economics, Elsevier, vol. 81(2), pages 206-218, July.
  3. Kyle Bagwell & Robert W. Staiger, 2011. "Can the Doha Round be a Development Round? Setting a Place at the Table," NBER Working Papers 17650, National Bureau of Economic Research, Inc.

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