The 'emulator effect' of the Uruguay round on US regionalism

Fugazza, Marco and Robert-Nicoud, Frédéric (2010) The 'emulator effect' of the Uruguay round on US regionalism. CEP Discussion Paper (973). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

Using a detailed data set at the tariff line level, we find an emulator effect of multilateralism on subsequent regional trade agreements involving the US. We exploit the variation in the frequency with which the US has granted immediate duty free access (IDA) to its Free Trade Area partners across tariff lines. A key finding is that the US has granted IDA status especially on goods for which it had cut the multilateral MFN tariff during the Uruguay round the most. Thus, the Uruguay Round (multilateral) ‘concessions’ have emulated subsequent (preferential) trade liberalisation. We conclude from this that past liberalisation sows the seeds of future liberalisation and that multilateral and preferential trade agreements are dynamic complements.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/
Additional Information:	© 2010 The authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor
JEL classification:	F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade N - Economic History > N7 - Transport, International and Domestic Trade, Energy, Technology, and Other Services > N70 - General, International, or Comparative F - International Economics > F1 - Trade > F15 - Economic Integration F - International Economics > F1 - Trade > F13 - Commercial Policy; Protection; Promotion; Trade Negotiations; International Trade Organizations
Date Deposited:	20 Jul 2010 14:24
Last Modified:	13 Sep 2024 20:14
URI:	http://eprints.lse.ac.uk/id/eprint/28723

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