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Trade policy under the GATT-WTO: empirical evidence of the equal treatment rule

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  • Chad Bown

Abstract

A fundamental difference between multilateral trade agreements like the GATT and WTO and a preferential agreement is the multilateral agreements' inclusion of a most-favoured-nation principle. Though MFN requires that members implement policies that provide equal treatment to all GATT-WTO countries, how far do members actually follow the MFN principle when so required? We empirically investigate a sample of GATT-WTO trade disputes and the effect of successful dispute settlement negotiations on the disputed product trade of third country exporters to the defendant country. We document evidence of trade liberalization consistent with defendant countries successfully applying the equal treatment rule.

Suggested Citation

  • Chad Bown, 2004. "Trade policy under the GATT-WTO: empirical evidence of the equal treatment rule," Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 678-720, August.
  • Handle: RePEc:cje:issued:v:37:y:2004:i:3:p:678-720
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    Citations

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    Cited by:

    1. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December.
    2. Saggi, Kamal, 2009. "The MFN clause, welfare, and multilateral cooperation between countries of unequal size," Journal of Development Economics, Elsevier, vol. 88(1), pages 132-143, January.
    3. Kyle Bagwell & Robert W. Staiger, 2013. "Can the Doha Round Be a Development Round? Setting a Place at the Table," NBER Chapters,in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 91-124 National Bureau of Economic Research, Inc.
    4. Chad Bown & Kara Reynolds, 2015. "Trade flows and trade disputes," The Review of International Organizations, Springer, vol. 10(2), pages 145-177, June.
    5. McCalman, Phillip, 2010. "Trade policy in a "super size me" world," Journal of International Economics, Elsevier, vol. 81(2), pages 206-218, July.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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