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The Design of Trade Agreements

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  • Kyle Bagwell
  • Robert W. Staiger

Abstract

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.

Suggested Citation

  • Kyle Bagwell & Robert W. Staiger, 2016. "The Design of Trade Agreements," NBER Working Papers 22087, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22087
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    6. Felbermayr Gabriel J., 2018. "Zur Rückkehr der Machtpolitik in Handelsfragen: Theoretische Überlegungen und politische Empfehlungen," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 19(3), pages 232-244, September.
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    11. Rafat Beigpoor Shahrivar & Duesterhoeft, Ilka & Rogna, Marco & Vogt, Carla, 2023. "A mechanism of proportional contributions for public good games," Ruhr Economic Papers 990, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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    13. Thomas Kuhn & Radomir Pestow & Anja Zenker, 2022. "Formation of Climate Coalitions and Preferential Free Trade - The Case for Participation Linkage," Chemnitz Economic Papers 057, Department of Economics, Chemnitz University of Technology, revised Nov 2022.
    14. Cole, Matthew T. & Lake, James & Zissimos, Ben, 2021. "Contesting an international trade agreement," Journal of International Economics, Elsevier, vol. 128(C).
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    23. Chiedza L. Muchopa, 2021. "Economic Impact of Tariff Rate Quotas and Underfilling: The Case of Canned Fruit Exports from South Africa to the EU," Economies, MDPI, vol. 9(4), pages 1-17, October.

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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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