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Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note

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Author Info
Goldstein, Judith
Martin, Lisa L
Abstract

If the purpose of legalization is to enhance international cooperation, more may not always be better. Achieving the optimal level of legalization requires finding a balance between reducing the risks of opportunism and reducing the potential negative effects of legalization on domestic political processes. The global trade regime, which aims to liberalize trade, has become increasingly legalized over time. Increased legalization has changed the information environment and the nature of government obligations, which in turn have affected the pattern of mobilization of domestic interest groups on trade. From the perspective of encouraging the future expansion of liberal trade, we suggest some possible negative consequences of legalization, arguing that these consequences must be weighed against the positive effects of legalization on increasing national compliance. Since the weakly legalized GATT institution proved sufficient to sustain widespread liberalization, the case for further legalization must be strong to justify far-reaching change in the global trade regime. Copyright 2000 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal International Organization.

Volume (Year): 54 (2000)
Issue (Month): 3 (Summer)
Pages: 603-32
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Handle: RePEc:tpr:intorg:v:54:y:2000:i:3:p:603-32

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  1. Jennifer Tobin & Susan Rose-Ackerman, 2003. "Foreign Direct Investment and the Business Environment in Developing Countries: the Impact of Bilateral Investment Treaties," William Davidson Institute Working Papers Series 587, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  2. Tadashi Ito, 2007. "NAFTA and productivity convergence between Mexico and the US," HEI Working Papers 26-2007, Economics Section, The Graduate Institute of International Studies, revised 09 Jun 2009. [Downloadable!]
  3. Nathan M Jensen, 2005. "International Institutions and Market Expectations: Stock Price Responses to the WTO Ruling on the 2002 U.S. Steel Tariffs," International Trade 0512008, EconWPA. [Downloadable!]
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