“Trade Liberalization and Institutional Constraints on Moves to Protectionism: Multilateralism vs. Regionalism.”
نویسندگان
چکیده
In this paper, two key questions are asked: why has the GATT/WTO worked in terms of multilateral tariff reduction and promotion of global trade, and to what extent will it act as a constraint on economic nationalism? To answer these two questions, three themes are laid out in the paper: first, the seminal economic model rationalizing the economic logic of the GATT/WTO is assessed; second, the perceived relevance of the GATT/WTO in a world of increasing regionalism is discussed; and third, the robustness of the GATT/WTO legal framework and dispute resolution mechanism is evaluated. The key conclusion of the paper is that the underlying economic logic of the GATT/WTO is still relevant, but that enforcement of the cooperative agreement will likely be placed under significant strain with threat of increased protection, and even a potential trade war. JEL Codes: F13, Q17
منابع مشابه
CEP Discussion Paper No 961 December 2009 Regional Trade Agreements Caroline Freund and Emanuel Ornelas
This paper reviews the theoretical and the empirical literature on regionalism. The formation of regional trade agreements has been, by far, the most popular form of reciprocal trade liberalization in the last fifteen years. The discriminatory character of these agreements has raised three main concerns: that trade diversion would be rampant, because special interest groups would induce governm...
متن کاملRegionalism versus Multilateralism
1687 Do the forces that regional integration arrangements set up encourage or discourage a trend toward globally freer trade? We don't know yet. Summary findings The literature on regionalism versus multilateralism is growing as economists and political scientists grapple with the question of whether regional integration arrangements are good or bad for the multilateral system. Are regional int...
متن کاملMultilateralism versus Regionalism!?
The well-known question whether regional trade agreements (RTAs) and the multilateral trading system (MTS) are strangers, friends, or foes (Bhagwati and Panagariya, 1996) has gained new importance with the widespread proliferation of RTAs in recent years. Based on an extensive data set which covers most of world trade over the past 60 years and about 240 regional trade agreements, we analyze ...
متن کاملwww.econstor.eu Multilateralism versus Regionalism!?
The well-known question whether regional trade agreements (RTAs) and the multilateral trading system (MTS) are strangers, friends, or foes (Bhagwati and Panagariya, 1996) has gained new importance with the widespread proliferation of RTAs in recent years. Based on an extensive data set which covers most of world trade over the past 60 years and about 240 regional trade agreements, we analyze ...
متن کاملA Political Economy Survey of Regionalism’s Effect on Global Liberalization
Are trade blocs stumbling blocks or building blocks? This chapter reviews many political economy arguments. First come those that suggest that regionalism undermines support for more generalized liberalization. Then we consider arguments that say that regional initiatives help build political momentum for global liberalization. Arguments as to how the adoption of a regional trading area might p...
متن کامل