scholarly journals Preferential Trade Liberalization with Endogenous Cartel Discipline: Implications for Welfare and Optimal Trade Policies

2020 ◽  
Author(s):  
Delina Agnosteva ◽  
Constantinos Syropoulos ◽  
Yoto Yotov
Keyword(s):  
Trade Liberalization ◽  
Trade Policies ◽  
Preferential Trade

Preferential Trade Agreements as Stumbling Blocks for Multilateral Trade Liberalization: Evidence for the United States

2006 ◽  
Vol 96 (3) ◽  
pp. 896-914 ◽  
Author(s):  
Nuno Limão
Keyword(s):  
United States ◽  
Trade Liberalization ◽  
Trade Agreements ◽  
The United States ◽  
Preferential Trade Agreements ◽  
Detailed Data ◽  
Preferential Trade ◽  
Multilateral Trade ◽  
Multilateral Trade Liberalization ◽  
Tariff Reductions

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.

scholarly journals The tide that does not raise all boats: an assessment of EU preferential trade policies

2016 ◽  
Vol 153 (1) ◽  
pp. 199-231 ◽  
Author(s):  
Maria Cipollina ◽  
David Laborde Debucquet ◽  
Luca Salvatici
Keyword(s):  
Trade Policies ◽  
Preferential Trade

Organizational Form and Trade Liberalization: Plant-Level Evidence

2021 ◽  
Author(s):  
John (Jianqiu) Bai
Keyword(s):  
Trade Liberalization ◽  
Core Competency ◽  
Extensive Margin ◽  
Trade Policies ◽  
Trade Shocks ◽  
Internal Organization ◽  
Level Data ◽  
Plant Level ◽  
The Impact ◽  
Aggregate Industry

This paper studies how firms’ internal organization shapes the impact of international trade. Using establishment-level data from the U.S. Census and a difference-in-difference specification, I find that, relative to standalone firms, conglomerates are more likely to restructure after trade liberalization episodes, focusing on their core competency and improving firm productivity and product market performance. Adjustments through the extensive margin account for the majority of the productivity growth differential between conglomerates and standalones experiencing trade shocks. Aggregate industry productivity remains relatively unchanged in industries dominated by conglomerates’ core business but decreases significantly in others. My findings suggest that firms’ internal organization has important consequences on the effects of trade policies. This paper was accepted by Gustavo Manso, finance.

Entrenchment of regionalism: WTO legality of MFN clauses in preferential trade agreements for goods and services

2013 ◽  
Vol 13 (3) ◽  
pp. 443-470 ◽  
Author(s):  
JONG BUM KIM
Keyword(s):  
Trade Liberalization ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Third Parties ◽  
Preferential Trade ◽  
Trade Relations ◽  
Goods And Services ◽  
Internal Trade

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.

scholarly journals OVER THREE DECADES OF TRADE LIBERALISATION IN NIGERIA: IMPLICATIONS FOR INDUSTRIAL REVOLUTION

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Geraldine E. Nzeribe ◽  
Chinecherem M. Uzonwanne ◽  
Uju R. Ezenekwe
Keyword(s):  
Trade Liberalization ◽  
Structural Adjustment ◽  
Industrial Revolution ◽  
Trade Openness ◽  
Trade Liberalisation ◽  
Trade Policies ◽  
Bounds Testing ◽  
Positive Effect ◽  
Opening Up ◽  
Ardl Bounds Testing Approach

The quest for a self-reliant and industrialised economy made Nigeria adopt several policies, over the years, towards opening up the economy to the industrialised world. The 1986 structural adjustment programme and other successive reforms were aimed at liberalising the economy. This study, using the ARDL bounds testing approach and interaction of trade liberalization dummy with trade openness, investigates if trade liberalization led to industrialization or de-industrialisation during the period under review and finds that trade liberalisation actually led to de-industrialisation but the interaction of trade liberalization and trade openness has positive effect on industrialization. The study recommends that liberalization of the economy should be handled with caution and should be accompanied by dynamic and flexible trade policies that will boost exports, especially industrial exports

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
Keyword(s):  
South Asia ◽  
Trade Liberalization ◽  
Preferential Trade ◽  
Welfare Impacts

Preferential Trade Agreements and Unilateral Liberalization: Evidence from CAFTA

2012 ◽  
Vol 11 (4) ◽  
pp. 591-619 ◽  
Author(s):  
PATRICIA TOVAR
Keyword(s):  
Trade Liberalization ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
Sample Period ◽  
Most Favored Nation ◽  
Preferential Trade ◽  
Block Effect ◽  
The Relationship

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.

JOHN BOWRING AND THE GLOBAL DISSEMINATION OF FREE TRADE

2008 ◽  
Vol 51 (2) ◽  
pp. 373-397 ◽  
Author(s):  
DAVID TODD
Keyword(s):  
Trade Liberalization ◽  
Free Trade ◽  
Central Europe ◽  
Western Europe ◽  
Trade Policies ◽  
International Diffusion ◽  
The World ◽  
Political Conditions ◽  
Global Communications ◽  
Insight Into

ABSTRACTThe international diffusion of ideas has often been described as an abstract process. John Bowring's career offers a different insight into the practical conditions that permitted a concept, free trade, to spread across national borders. An early advocate of trade liberalization in Britain, Bowring promoted free trade policies in France, Italy, Germany, Egypt, Siam, and China between 1830 and 1860. He employed different strategies according to local political conditions, appealing to public opinion in liberal Western Europe, seeking to persuade bureaucrats and absolute rulers in Central Europe and the Middle East, and resorting to gunboats in East Asia. His career also helps to connect the rise of free trade ideas in Europe with the ‘imperialism of free trade’ in other parts of the world. Bowring upheld the same liberal ideals as Richard Cobden and other luminaries of the free trade movement. Yet unlike them, he endorsed imperial ascendancy in order to remove obstacles to global communications and spread civilization outside Europe.

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