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Multilateralism compromised: the mysterious origins of GATT Article XXIV

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  • CHASE, KERRY

Abstract

The GATT treaty's loophole for free trade areas in Article XXIV has puzzled and deceived prominent scholars, who trace its postwar origins to US aspirations to promote European integration and efforts to persuade developing countries to endorse the Havana Charter. Drawing from archival records, this article shows that in fact US policymakers crafted the controversial provisions of Article XXIV to accommodate a trade treaty they had secretly reached with Canada. As a result, the free trade area exemption was embedded in the GATT–WTO regime, even though neither the Havana Charter nor the US–Canada free trade agreement was ever ratified. Theoretically, the case is an important example of how Cold War exigencies altered the policy ideas of US officials.

Suggested Citation

  • Chase, Kerry, 2006. "Multilateralism compromised: the mysterious origins of GATT Article XXIV," World Trade Review, Cambridge University Press, vol. 5(1), pages 1-30, March.
    • Handle: RePEc:cup:wotrrv:v:5:y:2006:i:01:p:1-30_00
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    Cited by:

    1. Giovanni Facchini & Peri Silva & Gerald Willmann, 2021. "The Political Economy of Preferential Trade Agreements: An Empirical Investigation [Distributive politics and economic growth]," The Economic Journal, Royal Economic Society, vol. 131(640), pages 3207-3240.
    2. Facchini, Giovanni & Silva, Peri & Willmann, Gerald, 2013. "The customs union issue: Why do we observe so few of them?," Journal of International Economics, Elsevier, vol. 90(1), pages 136-147.
    3. André Sapir, 2011. "European Integration at the Crossroads: A Review Essay on the 50th Anniversary of Bela Balassa's Theory of Economic Integration," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1200-1229, December.
    4. L Alan Winters, 2015. "The WTO and Regional Trading Agreements: Is it all over for Multilateralism?," RSCAS Working Papers 2015/94, European University Institute.
    5. Giovanni Facchini & Peri Silva & Gerald Willmann, 2015. "The Political Economy of Preferential Trade Arrangements: An Empirical Investigation," Discussion Papers 2015-16, University of Nottingham, GEP.
    6. Joanne Gowa & Raymond Hicks, 2012. "The most-favored nation rule in principle and practice: Discrimination in the GATT," The Review of International Organizations, Springer, vol. 7(3), pages 247-266, September.
    7. Mavroidis, Petros C., 2011. "Always look at the bright side of non-delivery: WTO and Preferential Trade Agreements, yesterday and today," World Trade Review, Cambridge University Press, vol. 10(3), pages 375-387, July.

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