IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Reciprocity and the hidden constitution of world trade

Listed author(s):
  • Carsten Herrmann-Pillath

    ()

In common descriptions of the world trading system, MFN and national treatment embody the principle of non-discrimination. Reciprocity is mostly regarded as a remnant of mercantilist trade policy. This paper argues that reciprocity is the more fundamental constitutional rule, because it reflects the unanimity principle enabling countries to identify Pareto-improving changes of trade policy. I reconstruct the implicit constitution of world trade by applying some methodology of positive constitutional economics. A major result is that in the Uruguay round a fundamental constitutional change took place from general reciprocity to “status quo reciprocity”, which entails the possibility of Pareto-deteriorating institutional changes. Copyright Springer Science+Business Media, LLC 2006

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://hdl.handle.net/10.1007/s10602-006-9000-2
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer in its journal Constitutional Political Economy.

Volume (Year): 17 (2006)
Issue (Month): 3 (September)
Pages: 133-163

as
in new window

Handle: RePEc:kap:copoec:v:17:y:2006:i:3:p:133-163
DOI: 10.1007/s10602-006-9000-2
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/political+science/journal/10602/PS2

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window


  1. Richard E. Baldwin, 1997. "The Causes of Regionalism," The World Economy, Wiley Blackwell, vol. 20(7), pages 865-888, November.
  2. Hansen, John Mark, 1990. "Taxation and the political economy of the tariff," International Organization, Cambridge University Press, vol. 44(04), pages 527-551, September.
  3. Francois, Joseph & Martin, Will, 2003. "Formula Approaches for Market Access Negotiations," CEPR Discussion Papers 3720, C.E.P.R. Discussion Papers.
  4. Ederington, Josh & McCalman, Phillip, 2003. "Discriminatory tariffs and international negotiations," Journal of International Economics, Elsevier, vol. 61(2), pages 397-424, December.
  5. Kyle Bagwell & Robert W. Staiger, 2001. "The WTO as a Mechanism for Securing Market Access Property Rights: Implications for Global Labor and Environmental Issues," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 69-88, Summer.
  6. Anderson, Kym, 2002. "Peculiarities of Retaliation in WTO Dispute Settlement," CEPR Discussion Papers 3578, C.E.P.R. Discussion Papers.
  7. Grossman, Gene M. & Helpman, Elhanan, 1995. "Trade Wars and Trade Talks," Scholarly Articles 3450062, Harvard University Department of Economics.
  8. J. Michael Finger & Julio J. Nogués, 2005. "The Unbalanced Uruguay Round Outcome: The New Areas in Future WTO Negotiations," International Trade 0502010, EconWPA.
  9. Charles Engel & John Rogers, 1998. "Regional Patterns in the Law of One Price: The Roles of Geography versus Currencies," NBER Chapters, in: The Regionalization of the World Economy, pages 153-188 National Bureau of Economic Research, Inc.
  10. Stern, Robert M. (ed.), 1989. "Trade and Investment Relations among the United States, Canada, and Japan," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226773179, May.
  11. Hoekman, Bernard M, 2002. "Strengthening the global trade architecture for development," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 34902, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  12. Michele Fratianni & John Pattison, 2001. "International Organisations in a World of Regional Trade Agreements: Lessons from Club Theory," The World Economy, Wiley Blackwell, vol. 24(3), pages 333-358, 03.
  13. Pao-li Chang, 2007. "The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism," Trade Working Papers 22062, East Asian Bureau of Economic Research.
  14. Mastanduno, Michael, 1998. "Economics and Security in Statecraft and Scholarship," International Organization, Cambridge University Press, vol. 52(04), pages 825-854, September.
  15. Arthur T. Denzau & Douglass C. North, 1993. "Shared Mental Models: Ideologies and Institutions," Economic History 9309003, EconWPA.
  16. Levy, Philip I & Srinivasan, T N, 1996. "Regionalism and the (Dis)advantage of Dispute-Settlement Access," American Economic Review, American Economic Association, vol. 86(2), pages 93-98, May.
  17. Mansfield, Edward D. & Reinhardt, Eric, 2003. "Multilateral Determinants of Regionalism: The Effects of GATT/WTO on the Formation of Preferential Trading Arrangements," International Organization, Cambridge University Press, vol. 57(04), pages 829-862, September.
  18. Chad P . Bown, 2002. "The Economics of Trade Disputes, the GATT's Article XXIII, and the WTO's Dispute Settlement Understanding," Economics and Politics, Wiley Blackwell, vol. 14(3), pages 283-323, November.
  19. Giovanni Maggi, 1999. "The Role of Multilateral Institutions in International Trade Cooperation," American Economic Review, American Economic Association, vol. 89(1), pages 190-214, March.
  20. Richard Chisik, 2010. "Gradualism in Free Trade Agreements: A Theoretical Justification," Working Papers 018, Ryerson University, Department of Economics.
  21. Bown, Chad P., 2004. "Trade disputes and the implementation of protection under the GATT: an empirical assessment," Journal of International Economics, Elsevier, vol. 62(2), pages 263-294, March.
  22. Dan Kovenock & Marie Thursby, 1992. "GATT, Dispute Settlement and Cooperation," NBER Working Papers 4071, National Bureau of Economic Research, Inc.
  23. Voigt, Stefan, 2009. "Explaining constitutional garrulity," International Review of Law and Economics, Elsevier, vol. 29(4), pages 290-303, December.
  24. Alessandra Casella & Jonathan S. Feinstein, 1990. "Public Goods in Trade: On the Formation of Markets and Political Jurisdictions," NBER Working Papers 3554, National Bureau of Economic Research, Inc.
  25. Michael Trebilcock & Robert Howse, 1998. "Trade Liberalization and Regulatory Diversity: Reconciling Competitive Markets with Competitive Politics," European Journal of Law and Economics, Springer, vol. 6(1), pages 5-37, July.
  26. Hoekman, Bernard, 2002. "Strengthening the global trade architecture for development: the post Doha agenda," World Trade Review, Cambridge University Press, vol. 1(01), pages 23-45, March.
  27. Robert W. Staiger, 1994. "International Rules and Institutions for Trade Policy," NBER Working Papers 4962, National Bureau of Economic Research, Inc.
  28. Moore,Mike, 2003. "A World without Walls," Cambridge Books, Cambridge University Press, number 9780521827010, December.
  29. Klaus Stegemann, 2000. "The Integration of Intellectual Property Rights into the WTO System," The World Economy, Wiley Blackwell, vol. 23(9), pages 1237-1267, 09.
  30. Gabriele Orcalli, 2003. "A Constitutional Interpretation of the GATT/WTO," Constitutional Political Economy, Springer, vol. 14(2), pages 141-154, June.
  31. Brian R. Copeland, 1990. "Strategic Interaction among Nations: Negotiable and Non-negotiable Trade Barriers," Canadian Journal of Economics, Canadian Economics Association, vol. 23(1), pages 84-108, February.
  32. Ethier, Wilfred J, 1998. "The New Regionalism," Economic Journal, Royal Economic Society, vol. 108(449), pages 1149-1161, July.
  33. Kyle Bagwell & Robert W. Staiger, 2004. "The Economics of the World Trading System," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262524341.
  34. Josh Ederington, 2001. "International Coordination of Trade and Domestic Policies," American Economic Review, American Economic Association, vol. 91(5), pages 1580-1593, December.
  35. Ito, Takatoshi & Krueger, Anne O. (ed.), 2003. "Trade in Services in the Asia-Pacific Region," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226386775, February.
  36. Sykes, Alan O., 1996. "The economics of injury in antidumping and countervailing duty cases," International Review of Law and Economics, Elsevier, vol. 16(1), pages 5-26, March.
  37. Schwartz, Warren F & Sykes, Alan O, 2002. "The Economic Structure of Renegotiation and Dispute Resolution in the World Trade Organization," The Journal of Legal Studies, University of Chicago Press, vol. 31(1), pages 179-204, January.
  38. Pomfret, Richard, 2001. "The Economics of Regional Trading Arrangements," OUP Catalogue, Oxford University Press, number 9780199248872.
  39. Finger, J. Michael, 1998. "GATT experience with safeguards - making economic and political sense of the possibilities that the GATT allows to restrict imports," Policy Research Working Paper Series 2000, The World Bank.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:kap:copoec:v:17:y:2006:i:3:p:133-163. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Rebekah McClure)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.