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Trade and Domestic Policy Linkage in International Agreements

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  • Josh Ederington

    (University of Miami)

Abstract

A central question in discussions of integrating negotiations over domestic policy (e.g., environmental policy or labor standards) into traditional trade agreements is the degree to which the trade policy and domestic policy provisions of an agreement should be explicitly linked. For example, should the World Trade Organization enforce domestic policy obligations with the threat of the suspension of trade concessions' This article considers the conditions under which linking trade and domestic policy agreements within a self-enforcing agreement is beneficial, and argues that the benefits of such policy linkage may be lower than is commonly thought. Copyright 2002 by the Economics Department of the University of Pennsylvania and Osaka University Institute of Social and Economic Research Association

Suggested Citation

  • Josh Ederington, 2002. "Trade and Domestic Policy Linkage in International Agreements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1347-1368, November.
  • Handle: RePEc:ier:iecrev:v:43:y:2002:i:4:p:1347-1368
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    Citations

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    Cited by:

    1. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    2. Thomas Kuhn & Radomir Pestow & Anja Zenker, 2018. "Endogenous Climate Coalitions and Free Trade - Building the Missing Link," Chemnitz Economic Papers 018, Department of Economics, Chemnitz University of Technology.
    3. Hoekman, Bernard & Saggi, Kamal, 2007. "Tariff bindings and bilateral cooperation on export cartels," Journal of Development Economics, Elsevier, vol. 83(1), pages 141-156, May.
    4. Gea Myoung Lee, 2011. "Optimal International Agreement and Treatment of Domestic Subsidy," Working Papers 01-2011, Singapore Management University, School of Economics.
    5. Limao, Nuno, 2005. "Trade policy, cross-border externalities and lobbies: do linked agreements enforce more cooperative outcomes?," Journal of International Economics, Elsevier, vol. 67(1), pages 175-199, September.
    6. Copeland, Brian R., 2012. "International trade and green growth," Policy Research Working Paper Series 6235, The World Bank.
    7. Alexandre Sauquet, 2014. "Exploring the nature of inter-country interactions in the process of ratifying international environmental agreements: the case of the Kyoto Protocol," Public Choice, Springer, vol. 159(1), pages 141-158, April.
    8. Richard Chisik & Harun Onder, 2017. "Does Limited Punishment Limit The Scope For Cross Retaliation?," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1213-1230, July.
    9. Richard Chisik, 2010. "Limited Incremental Linking and Unlinked Trade Agreements," Working Papers 023, Ryerson University, Department of Economics.
    10. Thomas, Charles J. & Willig, Robert D., 2006. "The risk of contagion from multimarket contact," International Journal of Industrial Organization, Elsevier, vol. 24(6), pages 1157-1184, November.
    11. Lee, Gea M., 2016. "Optimal international agreement and restriction on domestic efficiency," Journal of International Economics, Elsevier, vol. 99(C), pages 138-155.
    12. JINJI Naoto, 2009. "An Economic Theory of the SPS Agreement," Discussion papers 09033, Research Institute of Economy, Trade and Industry (RIETI).
    13. Maggi, Giovanni, 2014. "International Trade Agreements," Handbook of International Economics, Elsevier.
    14. Ederington, Josh & McCalman, Phillip, 2003. "Discriminatory tariffs and international negotiations," Journal of International Economics, Elsevier, vol. 61(2), pages 397-424, December.
    15. Nikos Tsakiris & Michael Michael & Panos Hatzipanayotou, 2014. "Asymmetric Tax Policy Responses in Large Economies With Cross-Border Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(4), pages 563-578, August.
    16. Inaba, Masaru & Nutahara, Kengo, 2009. "The role of investment wedges in the Carlstrom-Fuerst economy and business cycle accounting," Economics Letters, Elsevier, vol. 105(3), pages 200-203, December.
    17. Jean-Philippe Gervais & Bruno Larue & Harvey E. Lapan, 2008. "WTO Disciplines on Domestic Support and Market Access in Agri-Food Supply Chains," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 429-444, December.
    18. Lee, Gea M., 2007. "Trade agreements with domestic policies as disguised protection," Journal of International Economics, Elsevier, vol. 71(1), pages 241-259, March.
    19. Thomas Kuhn & Radomir Pestow & Anja Zenker, 2017. "Building Climate Coalitions on Preferential Free Trade Agreements," Chemnitz Economic Papers 011, Department of Economics, Chemnitz University of Technology, revised Jul 2017.

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