A "new trade" theory of GATT/WTO negotiations

Arbeitspapier

I develop a novel theory of GATT/WTO negotiations. This theory provides new answers to two prominent questions in the trade policy literature: first, what is the purpose of trade negotiations? And second, what is the role played by the fundamental GATT/WTO principles of reciprocity and nondiscrimination? Relative to the standard terms-of-trade theory of GATT/WTO negotiations, my theory makes two main contributions: first, it builds on a 'new trade' model rather than the neoclassical trade model and therefore sheds new light on GATT/WTO negotiations between similar countries. Second, it relies on a production relocation externality rather than the terms-of-trade externality and therefore demonstrates that the terms-of-trade externality is not the only trade policy externality, which can be internalized in GATT/WTO negotiations.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WTO Staff Working Paper ; No. ERSD-2009-08

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; Trade Policy; International Trade Organizations
• Subject: GATT/WTO ; new trade theory ; WTO-Regeln ; Neue Außenhandelstheorie ; Verhandlungstheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ossa, Ralph
• Event: Veröffentlichung
• (who): World Trade Organization (WTO)
• (where): Geneva
• (when): 2009

Further information

• DOI: doi:10.30875/dfceab11-en
• Handle: http://hdl.handle.net/10419/57621
• Last update: 10.03.2025, 11:44 AM CET