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          The Economics Of Trade Agreements In The Linear Cournot Delocation Model (English)
          Working paper by Bagwell, Kyle, Staiger, Robert W., 2009, 36 pages
          Categories: Trade Policy Analysis and Trade Data Sources, WTO Issues/Multilateral Trading System

          Existing theories of trade agreements suggest that GATT/WTO efforts to reign in export subsidies represent an inefficient victory for exporting governments that comes at the expense of importing governments. Building from the Cournot delocation model …first introduced by Venables (1985), we demonstrate that it is possible to develop a formal treatment of export subsidies in trade agreements in which a more benign interpretation of efforts to restrain export subsidies emerges. And we suggest that the gradual tightening of restraints on export subsidies that has occurred in the GATT/WTO may be interpreted as deriving naturally from the gradual reduction in import barriers that member countries have negotiated. Together with existing theories, the Cournot delocation model may help to provide a more nuanced and complete understanding of the treatment of export subsidies in trade agreements.

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          The WTO: Theory And Practice (English)
          Working paper by Bagwell, Kyle, Staiger, Robert W., 2009, 39 pages
          Categories: WTO Issues/Multilateral Trading System

          We consider the purpose and design of the World Trade Organization (WTO) and its predecessor, GATT. We review recent developments in the relevant theoretical and empirical literature. And we describe the GATT/WTO architecture and briefly trace its historical antecedents. We suggest that the existing literature provides a useful framework for understanding and interpreting central features of the design and practice of the GATT/WTO, and we identify key unresolved issues.