National Treatment in the GATT
Abstract
The National Treatment clause (NT) is the first-line defence in the GATT (and in most other trade agreements) against opportunistic exploitation of the inevitable incompleteness of the agreement. This paper examines the role of NT as it applies to internal taxation under the GATT. It is shown that despite severely restricting the freedom to set internal taxes, NT may improve government welfare. But it will not completely solve the incomplete contract problem it is meant to remedy. Furthermore, it requires a high degree of economic sophistication on behalf of trade negotiators in order for this beneficial effect to materialize.Download Info
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Bibliographic Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5450.Length:
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:cpr:ceprdp:5450
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Related research
Keywords: GATT; National Treatment; non-discrimination; trade agreement; WTO;Other versions of this item:
- Henrik Horn, 2006. "National Treatment in the GATT," American Economic Review, American Economic Association, vol. 96(1), pages 394-404, March.
- Horn, Henrik, 2006. "National Treatment in the GATT," Working Paper Series 657, Research Institute of Industrial Economics.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-29 (All new papers)
- NEP-INT-2006-01-29 (International Trade)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Horn, Henrik, 2006.
"National Treatment in the GATT,"
Working Paper Series
657, Research Institute of Industrial Economics.
- Henrik Horn, 2006. "National Treatment in the GATT," American Economic Review, American Economic Association, vol. 96(1), pages 394-404, March.
- Horn, Henrik, 2006. "National Treatment in the GATT," CEPR Discussion Papers 5450, C.E.P.R. Discussion Papers.
- Brian R. Copeland, 1990. "Strategic Interaction among Nations: Negotiable and Non-negotiable Trade Barriers," Canadian Journal of Economics, Canadian Economics Association, vol. 23(1), pages 84-108, February.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Costinot, Arnaud, 2008.
"A Comparative Institutional Analysis of Agreements on Product Standards,"
University of California at San Diego, Economics Working Paper Series
qt09f6660d, Department of Economics, UC San Diego.
- Costinot, Arnaud, 2008. "A comparative institutional analysis of agreements on product standards," Journal of International Economics, Elsevier, vol. 75(1), pages 197-213, May.
- Horn, Henrik & Mavroidis, Petros C., 2008. "The Permissible Reach of National Environmental Policies," Working Paper Series 739, Research Institute of Industrial Economics, revised 20 Jun 2008.
- Sergei Guriev & Mikhail Klimenko, 2010.
"Duration and Term Structure of Trade Agreements,"
Working Papers
w0150, Center for Economic and Financial Research (CEFIR).
- Sergei Guriev & Mikhail Klimenko, 2007. "Duration and Term Structure of Trade Agreements," Working Papers WP13_2007_09, Laboratory for Macroeconomic Analysis.
- Naoshi Doi & Hiroshi Ohashi, 2012. "Empirical Analysis of the National Treatment Obligation Under the WTO: The Case of Japanese Shochu ," CIRJE F-Series CIRJE-F-834, CIRJE, Faculty of Economics, University of Tokyo.
- Henrik Horn & Giovanni Maggi & Robert W. Staiger, 2010.
"Trade Agreements as Endogenously Incomplete Contracts,"
American Economic Review,
American Economic Association, vol. 100(1), pages 394-419, March.
- Horn, Henrik & Maggi, Giovanni & Staiger, Rikard W., 2007. "Trade Agreements as Endogenously Incomplete Contracts," Working Paper Series 689, Research Institute of Industrial Economics.
- Henrik Horn & Giovanni Maggi & Robert W. Staiger, 2006. "Trade Agreements as Endogenously Incomplete Contracts," NBER Working Papers 12745, National Bureau of Economic Research, Inc.
- Horn, Henrik & Maggi, Giovanni & Staiger, Robert, 2007. "Trade Agreements as Endogenously Incomplete Contracts," CEPR Discussion Papers 6037, C.E.P.R. Discussion Papers.
- Horn, Henrik, 2006.
"National Treatment in the GATT,"
Working Paper Series
657, Research Institute of Industrial Economics.
- Henrik Horn, 2006. "National Treatment in the GATT," American Economic Review, American Economic Association, vol. 96(1), pages 394-404, March.
- Horn, Henrik, 2006. "National Treatment in the GATT," CEPR Discussion Papers 5450, C.E.P.R. Discussion Papers.
- Horn, Henrik, 2009.
"The Burden of Proof in National Treatment Disputes and the Environment,"
CEPR Discussion Papers
7316, C.E.P.R. Discussion Papers.
- Horn, Henrik, 2009. "The Burden of Proof in National Treatment Disputes and the Environment," Working Paper Series 791, Research Institute of Industrial Economics.
- Horn, Henrik, 2011. "The burden of proof in trade disputes and the environment," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 15-29, July.
- Horn, Henrik & Mavroidis, Petros C., 2009. "Burden of Proof in Environmental Disputes in the WTO: Legal Aspects," Working Paper Series 793, Research Institute of Industrial Economics.
- Ralph Ossa, 2008. "A 'New Trade' Theory of GATT/WTO Negotiations," CEP Discussion Papers dp0877, Centre for Economic Performance, LSE.
- Robert W. Staiger & Alan O. Sykes, 2009. "International Trade and Domestic Regulation," NBER Working Papers 15541, National Bureau of Economic Research, Inc.
- Li, Na & Ker, Alan P., 2011. "Trade Agreements, Political Economy and Endogenously Incomplete Contracts," Working Papers 116850, Canadian Agricultural Trade Policy Research Network.
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