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The Design of Trade Agreements

Listed author(s):
  • Kyle Bagwell
  • Robert W. Staiger

What does economics have to say about the design of international trade agreements? We review a literature on this question, providing detailed coverage on three key design features of the GATT/WTO: reciprocity, nondiscrimination as embodied in the MFN principle, and tariff bindings and binding "overhang." Each of these features is central to the design of the GATT/WTO, and we argue that an economic perspective can go a long way toward revealing a consistent logic to the inclusion of these design features in trade agreements.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 22087.

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Date of creation: Mar 2016
Handle: RePEc:nbr:nberwo:22087
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