GOV_298_23 - Preferential Trade Agreements, Depth, and...

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Preferential Trade Agreements, Depth, and Regime-Type READING ASSIGNMENT: Mansfield, Edward D., Helen V. Milner, and B. Peter Rosendorff. 200 International Organization 56 (3):477-513.
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The Plan Review Domestic politics Democracy v. dictatorship
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Narrow and deep Most of the trade agreements in today’s class… BILATERAL As narrow as possible Still a form of international cooperation
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Preferential Trade Agreements (PTAs) PTAs are a form of Regional Trade Agreement (RTA) What are the two types of RTAs? Free trade area Customs union Which is more common? FTA Why? Customs unions require more sacrifice (common external tariff) Do RTAs violate the WTO principle of MFN? They clearly go against the spirit of MFN But they are allowed by the WTO/GATT charter (GATT Article XXIV) FTAs are becoming increasingly important 1 st wave in the 1950s 2 nd wave started in the 1990s and is continuing (100s are currently in force)
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Will bilateral cooperation hurt global cooperation? Recall Richardson Hypothesis
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Why a trade agreement? Lock-in benefits of trade for winners Question: Is this commitment credible? Always pose this question when it comes to commitment Send a signal to consumers of “good” policy?
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GOV_298_23 - Preferential Trade Agreements, Depth, and...

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