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What do we know about preferential trade agreements and temporary trade barriers ?
Author:Bown, Chad P.; Karacaovali, Baybars; Tovar, Patricia; Collection Title:Policy Research working paper ; no. WPS 6898
Country:World; Date Stored:2014/06/02
Document Date:2014/06/01Document Type:Policy Research Working Paper
SubTopics:Rules of Origin; Currencies and Exchange Rates; Free Trade; Trade Policy; Trade LawLanguage:English
Major Sector:Industry and tradeRel. Proj ID:1W-Market Access Research -- -- P111070;
Region:The World RegionReport Number:WPS6898
Sub Sectors:Other domestic and international tradeVolume No:1 of 1

Summary: Two of the most important trade policy developments to take place since the 1980s are the expansion of preferential trade agreements and temporary trade barriers, such as antidumping, safeguards, and countervailing duties. Despite the empirical importance of preferential trade agreements and temporary trade barriers and the common feature that each can independently have quite discriminatory elements, relatively little is known about the nature of any relationships between them. This paper surveys the literature on some of the political-economic issues that can arise at the intersection of preferential trade agreements and temporary trade barriers and uses four case studies to illustrate variation in how countries apply the World Trade Organization's global safeguards policy instrument. The four examples include recent policies applied by a variety of types of countries and under different agreements: large and small countries, high-income and emerging economies, and free trade areas and customs unions. The analysis reveals important measurement and identification challenges for research that seeks to find evidence of systematic relationships between the formation of preferential trade agreements, the political-economic implications of their implementation, and the use of subsequent temporary trade barriers.

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