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The Design of Trade Agreements

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  • Kyle Bagwell
  • Robert W. Staiger

Abstract

What does economics have to say about the design of international trade agreements? We review a literature on this question, providing detailed coverage on three key design features of the GATT/WTO: reciprocity, nondiscrimination as embodied in the MFN principle, and tariff bindings and binding "overhang." Each of these features is central to the design of the GATT/WTO, and we argue that an economic perspective can go a long way toward revealing a consistent logic to the inclusion of these design features in trade agreements.

Suggested Citation

  • Kyle Bagwell & Robert W. Staiger, 2016. "The Design of Trade Agreements," NBER Working Papers 22087, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22087
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    14. Cole, Matthew T. & Lake, James & Zissimos, Ben, 2021. "Contesting an international trade agreement," Journal of International Economics, Elsevier, vol. 128(C).
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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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