Trade negotiations, domestic policies, and the Most Favored Nation clause |
| |
Authors: | Gal Hochman |
| |
Institution: | Faculty of Industrial Engineering and Management, The Technion |
| |
Abstract: | Abstract. This paper illustrates how restricting trade instruments to non-discrimination links trade agreements to non-trade agreements and, under certain conditions, helps governments further lower tariffs and/or domestic standards (policies). These conditions are: (i) governments' objective functions are sufficiently concave with respect to domestic standards (policies); (ii) domestic standards are sufficiently valued; and (iii) policies are strategic complements. These can then be used as a rationale for restricting safeguard measures to non-discrimination. |
| |
Keywords: | F02 F13 F18 |
|
|