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Trade Agreements: The Important Role of Transparency

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  • Kerr, William A.

Abstract

International trade can be inhibited in two ways; through the use of mechanisms that directly alter the flow of goods and poor transparency in the rules of trade. The former includes tariffs and other border measures, subsidies and non-tariff barriers. The effect on trade flows resulting from issues of transparency is indirect. When the rules of trade are unclear for firms considering investing in trade related activities, the risks associated with those investments increase and investment is inhibited. If there is less investment in trade related activities, trade flows will be reduced. Poor transparency exists in contingent protection measures such as anti-dumping – currently on the agenda of the Rules negotiations at the WTO and – customs and related procedures – on the agenda in the Trade Facilitation negotiations. Increasing transparency can have important trade liberalizing effects. Trade negotiators often focus on achieving a big result from reductions in border measures and subsidies where there may be considerable resistance from protectionist vested interests. If progress can be made in increasing the transparency of trade rules, a less ambitious result may be acceptable for the direct aspects of trade liberalization.

Suggested Citation

  • Kerr, William A., 2008. "Trade Agreements: The Important Role of Transparency," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 9(1), pages 1-12.
  • Handle: RePEc:ags:ecjilt:6322
    DOI: 10.22004/ag.econ.6322
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    File URL: https://ageconsearch.umn.edu/record/6322/files/09010001.pdf
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    References listed on IDEAS

    as
    1. Gaisford, James D. & Richardson, R. Stephen, 2001. "The TRIPS Disagreement: Should GATT Traditions Have Been Abandoned?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 1(2), pages 1-15.
    2. repec:clg:wpaper:2000-10 is not listed on IDEAS
    3. Gaisford, James D. & Richardson, R. Stephen, 2000. "The TRIPS Disagreement: Should GATT Traditions Have Been Abandoned? Technical Annex," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 1(2), pages 1-19.
    4. William A. Kerr & James D. Gaisford (ed.), 2007. "Handbook on International Trade Policy," Books, Edward Elgar Publishing, number 3521.
    5. Kareen L. Holtby & William A. Kerr & Jill E. Hobbs, 2007. "International Environmental Liability and Barriers to Trade," Books, Edward Elgar Publishing, number 12610.
    6. James D. Gaisford & Robert Tarvydas & Jill E. Hobbs & William A. Kerr, 2002. "Biotechnology Piracy: Rethinking the International Protection of Intellectual Property," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(1), pages 15-34, March.
    7. James D. Gaisford & William A. Kerr, 2001. "Economic Analysis for International Trade Negotiations," Books, Edward Elgar Publishing, number 2243.
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    Cited by:

    1. Lili Yan ING & Olivier CADOT & Janine WALZ, 2016. "Transparency in Non-Tariff Measures : An International Comparison," Working Papers P182, FERDI.

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