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Does Bilateralism Promote Trade? Nineteenth Century Liberalization Revisited

Author

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  • Olivier Accominotti

    (Observatoire français des conjonctures économiques)

  • Marc Flandreau

    (Sciences Po)

Abstract

Textbook accounts of the Anglo-French trade agreement of 1860 argue that it heralded the beginning of a liberal trading order. This alleged success has much interest from a policy point of view: unlike modern GATT/WTO multilateral agreements, it rested on bilateral negotiations. But, in reality, how great were its effects? With the help of new data on international trade we provide empirical evidence. We find that the Anglo-French treaty and subsequent network of Most Favoured Nation (MFN) trade agreements coincided with the end of a period of unilateral liberalization across the world, and that it did not contribute to expand trade at all. This is contrary to a deeply rooted belief among economists and economic historians. We conclude that, contrary to a popular wisdom, bilateralism did not promote trade in the 19th century.

Suggested Citation

  • Olivier Accominotti & Marc Flandreau, 2006. "Does Bilateralism Promote Trade? Nineteenth Century Liberalization Revisited," Sciences Po publications n°5423, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/670
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    References listed on IDEAS

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    Cited by:

    1. Kevin H. O'Rourke, Leandro Prados de la Escosura and Guilllaume Daudin, 2008. "Trade and Empire, 1700-1870," The Institute for International Integration Studies Discussion Paper Series iiisdp249, IIIS.
    2. Tena-Junguito, Antonio & Lampe, Markus & Fernandes, Felipe Tã‚Mega, 2012. "How Much Trade Liberalization Was There in the World Before and After Cobden-Chevalier?," The Journal of Economic History, Cambridge University Press, vol. 72(3), pages 708-740, August.
    3. Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2011. "Trade booms, trade busts, and trade costs," Journal of International Economics, Elsevier, vol. 83(2), pages 185-201, March.
    4. Stéphane Becuwe & Bertrand Blancheton, 2014. "The dispersion of customs tariffs in France between 1850 and 1913: Discrimination in trade policy," Research in Economic History, in: Christopher Hanes & Susan Wolcott (ed.),Research in economic history, volume 30, pages 163-183, Emerald Publishing Ltd.
    5. Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2010. "Trade costs in the first wave of globalization," Explorations in Economic History, Elsevier, vol. 47(2), pages 127-141, April.
    6. repec:spo:wpecon:info:hdl:2441/6149 is not listed on IDEAS
    7. Paulo Reis Mourao, 2015. "Discussing Chevalier’s Data on the Efficiency of Tariffs for American and French Canals in the 1830s," SAGE Open, , vol. 5(2), pages 21582440155, April.
    8. Kris James Mitchener & Marc Weidenmier, 2008. "Trade and Empire," NBER Working Papers 13765, National Bureau of Economic Research, Inc.
    9. Michel Fouquin & Jules Hugot, 2016. "Back to the Future: International Trade Costs and the Two Globalizations," Vniversitas Económica 015130, Universidad Javeriana - Bogotá.
    10. Stéphane BECUWE & Bertrand BLANCHETON & Léo CHARLES, 2012. "The decline of French trade power during the first globalization (1850-1913)," Cahiers du GREThA (2007-2019) 2012-22, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    11. Gerhard Kling & Joerg Baten & Kirsten Labuske, 2011. "FDI of German Companies During Globalization and Deglobalization," Open Economies Review, Springer, vol. 22(2), pages 247-270, April.

    More about this item

    Keywords

    Trade policy; Bilateralism;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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