Despite the successes achieved in liberalizing trade by
multilateral trade negotiations sponsored by the World Trade
Organization (WTO), numerous countries have separately negotiated
preferential trade treaties with one another. Representing a
significant departure from the WTO's central principle of
non-discrimination among member countries, preferential trade blocs
are the subject of an intense academic and policy debate. The first
section of this 2005 book presents a rudimentary and intuitive
introduction to the economics of preferential trade agreements. The
following chapters present the author's theoretical and empirical
research on a number of questions surrounding the issue of
preferential trade agreements including the design of necessarily
welfare-improving trade blocs, the quantitative (econometric)
evaluation of the economic (welfare) impact of preferential trade
liberalization, and the impact of preferential trade agreements and
the multilateral trade system.
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