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Trade and Domestic Policy Linkage in International Agreements

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  • Josh Ederington

    (University of Miami)

Abstract

A central question in discussions of integrating negotiations over domestic policy (e.g., environmental policy or labor standards) into traditional trade agreements is the degree to which the trade policy and domestic policy provisions of an agreement should be explicitly linked. For example, should the World Trade Organization enforce domestic policy obligations with the threat of the suspension of trade concessions' This article considers the conditions under which linking trade and domestic policy agreements within a self-enforcing agreement is beneficial, and argues that the benefits of such policy linkage may be lower than is commonly thought. Copyright 2002 by the Economics Department of the University of Pennsylvania and Osaka University Institute of Social and Economic Research Association

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 43 (2002)
Issue (Month): 4 (November)
Pages: 1347-1368

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Handle: RePEc:ier:iecrev:v:43:y:2002:i:4:p:1347-1368

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Cited by:
  1. INABA Masaru & NUTAHARA Kengo, 2009. "The Role of Investment Wedges in the Carlstrom-Fuerst Economy and Business Cycle Accounting," Discussion papers 09030, Research Institute of Economy, Trade and Industry (RIETI).
  2. Thomas, Charles J. & Willig, Robert D., 2006. "The risk of contagion from multimarket contact," International Journal of Industrial Organization, Elsevier, vol. 24(6), pages 1157-1184, November.
  3. Brian R. Copeland & M. Scott Taylor, 2003. "Trade, Growth and the Environment," NBER Working Papers 9823, National Bureau of Economic Research, Inc.
  4. Nuno Limão, 2002. "Trade policy, cross-border externalities and lobbies: do linked agreements enforce more cooperative outcomes?," International Trade 0206002, EconWPA, revised 28 Jul 2002.
  5. Copeland, Brian R., 2012. "International trade and green growth," Policy Research Working Paper Series 6235, The World Bank.
  6. JINJI Naoto, 2009. "An Economic Theory of the SPS Agreement," Discussion papers 09033, Research Institute of Economy, Trade and Industry (RIETI).
  7. Gea Myoung Lee, 2011. "Optimal International Agreement and Treatment of Domestic Subsidy," Working Papers 01-2011, Singapore Management University, School of Economics.
  8. Hoekman, Bernard & Saggi, Kamal, 2007. "Tariff bindings and bilateral cooperation on export cartels," Journal of Development Economics, Elsevier, vol. 83(1), pages 141-156, May.
  9. Richard Chisik & Harun Onder, 2010. "Limiting Cross-Retaliation when Punishment is Limited: How DSU Article 22.3 Complements GATT Article XXVIII," Working Papers 025, Ryerson University, Department of Economics.
  10. Richard Chisik, 2010. "Limited Incremental Linking and Unlinked Trade Agreements," Working Papers 023, Ryerson University, Department of Economics.
  11. Ederington, Josh & McCalman, Phillip, 2003. "Discriminatory tariffs and international negotiations," Journal of International Economics, Elsevier, vol. 61(2), pages 397-424, December.
  12. Lee, Gea M., 2007. "Trade agreements with domestic policies as disguised protection," Journal of International Economics, Elsevier, vol. 71(1), pages 241-259, March.

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