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What do we know about preferential trade agreements and temporary trade barriers ?

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  • Bown, Chad P.
  • Karacaovali, Baybars
  • Tovar, Patricia

Abstract

Two of the most important trade policy developments to take place since the 1980s are the expansion of preferential trade agreements and temporary trade barriers, such as antidumping, safeguards, and countervailing duties. Despite the empirical importance of preferential trade agreements and temporary trade barriers and the common feature that each can independently have quite discriminatory elements, relatively little is known about the nature of any relationships between them. This paper surveys the literature on some of the political-economic issues that can arise at the intersection of preferential trade agreements and temporary trade barriers and uses four case studies to illustrate variation in how countries apply the World Trade Organization's global safeguards policy instrument. The four examples include recent policies applied by a variety of types of countries and under different agreements: large and small countries, high-income and emerging economies, and free trade areas and customs unions. The analysis reveals important measurement and identification challenges for research that seeks to find evidence of systematic relationships between the formation of preferential trade agreements, the political-economic implications of their implementation, and the use of subsequent temporary trade barriers.

Suggested Citation

  • Bown, Chad P. & Karacaovali, Baybars & Tovar, Patricia, 2014. "What do we know about preferential trade agreements and temporary trade barriers ?," Policy Research Working Paper Series 6898, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6898
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    References listed on IDEAS

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    1. Chad P. Bown & Meredith A. Crowley, 2013. "Self-Enforcing Trade Agreements: Evidence from Time-Varying Trade Policy," American Economic Review, American Economic Association, vol. 103(2), pages 1071-1090, April.
    2. Baybars Karacaovali, 2011. "Trade Policy Determinants and Trade Reform in a Developing Country," Working Papers 201115, University of Hawaii at Manoa, Department of Economics.
    3. repec:spo:wpecon:info:hdl:2441/8335 is not listed on IDEAS
    4. Michael G. Plummer (ed.), 2004. "Empirical Methods in International Trade," Books, Edward Elgar Publishing, number 3447, April.
    5. Chad Bown, 2013. "How Different Are Safeguards from Antidumping? Evidence from US Trade Policies Toward Steel," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(4), pages 449-481, June.
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    Cited by:

    1. Chad P. Bown & Patricia Tovar, 2016. "Preferential Liberalization, Antidumping, and Safeguards: Stumbling Block Evidence from MERCOSUR," Economics and Politics, Wiley Blackwell, vol. 28(3), pages 262-294, November.
    2. Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, pages 1125-1231.
    3. Knobel, Alexander & Baeva, Marina, 2017. "Protective Measures in Integration Agreements and Their Impact on Mutual Trade and Trade with Third Countries: Features of Russia and the Countries of the Eurasian Economic Union," Working Papers 051735, Russian Presidential Academy of National Economy and Public Administration.
    4. Bown, Chad P. & Crowley, Meredith A, 2016. "The Empirical Landscape of Trade Policy," CEPR Discussion Papers 11216, C.E.P.R. Discussion Papers.
    5. Nuno Limão, 2016. "Preferential Trade Agreements," NBER Working Papers 22138, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Trade Law; Free Trade; Trade Policy; Currencies and Exchange Rates; Rules of Origin;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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