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Preferential vs. multilateral trade liberalization: evidence and open questions

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  • LIMÃO, NUNO

Abstract

All but one WTO member currently trade under one or more preferential trade agreements (PTAs). Despite the concern since the early 1990s that these agreements may be a stumbling block to multilateral trade liberalization (MTL) their numbers have risen at an increasing rate in the last 15 years. As preferential liberalization appears to become the rule rather than the exception, it is essential to ask whether there is evidence that it affects MTL. To do so we analyze recent empirical research that finds the US's and EU's PTAs were a stumbling block to their MTL in the Uruguay Round. We also propose new empirical work to answer more definitively whether PTAs are a stumbling block to worldwide MTL.

Suggested Citation

  • Limãƒo, Nuno, 2006. "Preferential vs. multilateral trade liberalization: evidence and open questions," World Trade Review, Cambridge University Press, vol. 5(2), pages 155-176, July.
    • Handle: RePEc:cup:wotrrv:v:5:y:2006:i:02:p:155-176_00
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    Cited by:

    1. Pedro J. Martinez Edo, 2011. "Reciprocal liberalization: Bilateral, plurilateral or multilateral?," STUDIES IN TRADE AND INVESTMENT, in: United Nations ESCAP (ed.), Trade beyond Doha: Prospects for Asia-Pacific Least Developed Countries, Studies in Trade and Investment 76, chapter 4, pages 60-94, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Vivek Joshi, 2010. "Preferential Tariff Formation -- The Case of the European Union," IHEID Working Papers 05-2010, Economics Section, The Graduate Institute of International Studies.
    3. Guyslain K. Ngeleza & Andrew Muhammad, 2015. "Preferential Trade Agreements Between the Monetary Community of Central Africa and the European Union: Stumbling or Building Blocks? A General Equilibrium Approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(2), pages 251-272, March.
    4. Vivek Joshi, 2010. "Preferential Tariff Formation -- The Case of the United States," IHEID Working Papers 06-2010, Economics Section, The Graduate Institute of International Studies, revised Mar 2010.

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