World trade is governed by the rules of the World Trade
Organization (WTO), the successor to the General Agreement on
Tariffs and Trade (GATT). The WTO sets rules of conduct for the
international trade of goods and services and for intellectual
property rights, provides a forum for multinational negotiations to
resolve trade problems, and has a formal mechanism for dispute
settlement. It is the primary institution working, through
rule-based bargaining, at freeing trade.In this book, Kyle Bagwell
and Robert Staiger provide an economic analysis and justification
for the purpose and design of the GATT/WTO. They summarize their
own research, discuss the major features of the GATT agreement, and
survey the literature on trade agreements. Their focus on the
terms-of-trade externality is particularly original and ties the
book together. Topics include the theory of trade agreements, the
origin and design of the GATT and the WTO, the principles of
reciprocity, the most favored nation principle, terms-of-trade
theory, enforcement, preferential trade agreements, labor and
environmental standards, competition policy, and agricultural
export subsidies.
General
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