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Veto players and the design of preferential trade agreements

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  • Todd Allee
  • Manfred Elsig

Abstract

The concept of domestic veto players has become a popular explanation for foreign policy rigidity. We argue that veto players can be amenable to new policy initiatives – in our case preferential trade agreements (PTAs) – but then choose to exert a strong influence on their contents. Drawing upon more than a dozen PTA-design variables for an expanded collection of postwar trade agreements, our quantitative tests reveal that veto players systematically shape what is included in, and excluded from, PTAs. Most notably, agreements concluded under greater veto-player constraints contain fewer liberalization commitments, weaker dispute settlement, and more opt-outs in the form of trade remedies. Our findings highlight domestic political actors as important determinants of international institutional design and show that veto players exert additional, and perhaps stronger, influence on what is proscribed in agreements, not just whether they are enacted in the first place.

Suggested Citation

  • Todd Allee & Manfred Elsig, 2017. "Veto players and the design of preferential trade agreements," Review of International Political Economy, Taylor & Francis Journals, vol. 24(3), pages 538-567, May.
    • Handle: RePEc:taf:rripxx:v:24:y:2017:i:3:p:538-567
    DOI: 10.1080/09692290.2017.1316298
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    Cited by:

    1. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2019. "Foreign Influence and Domestic Policy: A Survey," Working Papers 1072, Barcelona School of Economics.
    2. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2021. "Foreign Influence and Domestic Policy," Journal of Economic Literature, American Economic Association, vol. 59(2), pages 426-487, June.
    3. Tarald Gulseth Berge & Øyvind Stiansen, 2023. "Bureaucratic capacity and preference attainment in international economic negotiations," The Review of International Organizations, Springer, vol. 18(3), pages 467-498, July.

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