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Bilateral treaties and the most-favored-nation clause: the myth of trade liberalization in the nineteenth century

Accominotti, Olivier and Flandreau, Marc (2008) Bilateral treaties and the most-favored-nation clause: the myth of trade liberalization in the nineteenth century. World Politics, 60 (2). pp. 147-188. ISSN 0043-8871

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Identification Number: 10.1353/wp.0.0010


Textbook accounts of the Anglo-French trade agreement of 1860 argue that it heralded the beginning of a liberal trading order. This alleged success holds much interest from a modern policy point of view, for it rested on bilateral negotiations and most-favored-nation clauses. With the help of new data on international trade (the RICardo database), the authors provide empirical evidence and find that the treaty and subsequent network of MFN trade agreements coincided with the end of a period of unilateral liberalization across the world. They also find that it did not contribute to expanding trade at all. This is contrary to a deeply rooted belief among economists, economic historians, and political scientists. The authors draw a number of policy lessons that run counter to the conventional wisdom and raise skepticism toward the ability of bilateralism and MFN arrangements to promote trade liberalization.

Item Type: Article
Official URL:
Additional Information: © 2008 Trustees of Princeton University
Divisions: Economic History
Subjects: D History General and Old World > DA Great Britain
D History General and Old World > DC France
H Social Sciences > HC Economic History and Conditions
J Political Science > JZ International relations
JEL classification: F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
F - International Economics > F5 - International Relations and International Political Economy > F53 - International Agreements and Observance; International Organizations
N - Economic History > N2 - Financial Markets and Institutions > N24 - Europe: 1913-
Date Deposited: 20 Jun 2011 08:32
Last Modified: 20 Oct 2021 00:23

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