scholarly journals Welfare Impacts of Preferential Trade Liberalization in South Asia

2015 ◽  
Vol 49 (5) ◽  
pp. 285-292 ◽  
Author(s):  
Amirul Islam ◽  
Ruhul Salim ◽  
Salim Harry
2006 ◽  
Vol 96 (3) ◽  
pp. 896-914 ◽  
Author(s):  
Nuno Limão

Most countries are members of preferential trade agreements (PTAs). The effect of these agreements has attracted much interest and raised the question of whether PTAs promote or slow multilateral trade liberalization, i.e., whether they are a “building block” or “stumbling block” to multilateral liberalization. Despite this long-standing concern with PTAs and the lack of theoretical consensus, there is no systematic evidence on whether they are actually a stumbling block to multilateral liberalization. We use detailed data on U.S. multilateral tariffs to provide the first systematic evidence that the direct effect of PTAs was to generate a stumbling block to its MTL. We also provide evidence of reciprocity in multilateral tariff reductions.


2013 ◽  
Vol 13 (3) ◽  
pp. 443-470 ◽  
Author(s):  
JONG BUM KIM

AbstractThe most favoured nation (MFN) clauses in preferential trade agreements (PTAs) under GATT Article XXIV or under GATS Article V entrench the preferential trade relations between the PTA parties because the trade liberalization in future PTAs with third parties will be constrained by the existing PTA MFN clauses. Trade liberalization based on PTA MFN clauses cannot be considered part of the internal trade liberalization required by GATT Article XXIV:8 or GATS Article V:1. The exclusionary effects caused by trade liberalization through PTA MFN clauses increase the burden on trade with third parties. As a result, PTA MFN clauses do not meet the necessity test under the Appellate Body's decision in Turkey–Textiles, as reasonable alternatives to the PTA MFN clauses are available. For these reasons, PTA MFN clauses fail the requirements for legal defences under GATT Article XXIV or GATS Article V for their violations of the general MFN clauses under GATT Article I and GATS Article II. For those products or services subject to existing PTA MFN clauses, any preferential liberalization based on PTA MFN clauses should be accorded non-discriminatorily to all WTO members in accordance with GATT Article I or GATS Article II.


2014 ◽  
Vol 13 (4) ◽  
pp. 479-503 ◽  
Author(s):  
Muhammad Zakaria ◽  
Junyang Xi

The paper empirically examines the effects of trade liberalization reforms on food security in South Asia countries (sacs) using econometric analysis in a panel framework for the period from 1972 to 2013. The estimated results indicate that trade liberalization has a significant positive effect on food production and food security in the region. The results also endorse the role of agriculture factors in improving food production and food security in sacs. The findings indicate that food security is mainly a political problem in South Asia. Solving conflicts politically, violence prevention, the reduction of international arms trade, and the reduction of military expenditures and protection of civil and political rights should be central to policies that address food security issue in the region.


2012 ◽  
Vol 11 (4) ◽  
pp. 591-619 ◽  
Author(s):  
PATRICIA TOVAR

AbstractThere is no consensus in the literature on whether preferential trade agreements help or hinder trade liberalization toward non-members. We examine the link between preferential trade liberalization and tariffs imposed against non-member countries for the case of CAFTA-DR. Using product data at the 6-digit HS level, we find that products with larger reductions in preferential tariffs experienced larger increases (or smaller decreases) in most-favored nation tariffs applied against non-members. However, we also uncover some interesting dynamics regarding the relationship between preferential liberalization and tariffs imposed against non-members. When we split the sample period into two sub-periods, we find an initial negative relationship between changes in preferential and most-favored nation tariffs during the first half of the sample period, followed by a positive relationship during the second half, although the evidence on the latter is not as strong. The results thus provide the first evidence of an initial stumbling block effect of preferential trade liberalization on unilateral liberalization, as well as (weaker) evidence of a subsequent building block effect.


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