Preferential Trade Agreements and the World Trade System: A Multilateralist View
AbstractThis paper reviews recent developments in international trade to evaluate several arguments concerning the merits of preferential trade agreements (PTAs) and their place in the world trade system. Taking a multilateralist perspective, it makes several points: First, despite the proliferation of PTAs in recent years, the actual amount of liberalization that has been achieved through PTAs is actually quite limited. Second, at least a few studies point to significant trade diversion in the context of particular PTAs and thus serve as a cautionary note against casual dismissals of trade diversion as a merely theoretical concern. Equally, adverse effects on the terms-of-trade of non-member countries have also been found in the literature. Third, while the literature has found mixed results on the question of whether tariff preferences help or hurt multilateral liberalization, the picture is different with the more elastic tools of trade policy, such as antidumping duties (ADs); the use of ADs against non-members appears to have dramatically increased while the use of ADs against partner countries within PTAs has fallen. Fourth, despite the rapid expansion of preferences in trade, intra-PTA trade shares are relatively small for most PTAs; multilateral remain relevant to most member countries of the WTO.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17840.
Date of creation: Feb 2012
Date of revision:
Publication status: published as Preferential Trade Agreements and the World Trade System: A Multilateralist View , Pravin Krishna. in Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century , Feenstra and Taylor. 2014
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Other versions of this item:
- Pravin Krishna, 2013. "Preferential Trade Agreements and the World Trade System: A Multilateralist View," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 131-160 National Bureau of Economic Research, Inc.
- F1 - International Economics - - Trade
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- Jayjit Roy, 2014.
"On the robustness of the trade-inducing effects of trade agreements and currency unions,"
Springer, vol. 47(1), pages 253-304, August.
- Jayjit Roy, 2009. "On the Robustness of the Trade-Inducing Effects of Trade Agreements and Currency Unions," Departmental Working Papers 0906, Southern Methodist University, Department of Economics.
- Jayjit Roy, 2010. "On the Robustness of the Trade-Inducing Effects of Trade Agreements and Currency Unions," Working Papers 10-09, Department of Economics, Appalachian State University.
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