Abstract: This paper shows that bilateral free trade agreements can weaken political support for further multilateral trade liberalization. If a bilateral trade agreement brings disproportionate benefits to a country`s major players, their advantage is increased at the multilateral level of free trade and a multilateral agreement would be blocked. Bilateral agreements between countries with similar factor allocations are most likely to have this effect. It also follows that bilateral free trade agreements will never increase political support for multilateral free trade. Copyright 1997 by American Economic Association. Related Works:This item may be available elsewhere in EconPapers: Searching for items with the same title. Downloads: (external link) links.jstor.org/sici?sici=0002-8282%2819970 … O%3B2-Z -origin-repec Full text (application/pdf) Access to full text is limited to JSTOR subscribers. For more information, see www.jstor.org. American Economic Review, 85, 1995, p. 667-690 Quote courtesy of Ordering Information: This review article can be commissioned fromwww.aeaweb.org/journals/subscriptions Suppose two countries have the opportunity to negotiate a free trade agreement. Will a free trade agreement between these countries be politically viable? If so, how will it be? We are looking at these issues through a political and economic framework that emphasizes the interaction between industry interest groups and a government in place. We describe the economic conditions necessary for a free trade agreement to be a balanced outcome, both in the event that the agreement must cover all bilateral trade and where certain politically sensitive sectors may be excluded from the agreement.
Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent Link: EconPapers.repec.org/RePEc:aea:aecrev:v:87:y:1997:i:4:p:506-19 Date: 1997 References: Added References at CitEc Citations: View Quotes in EconPapers (159) Track quotes by RSS feed American Economic Review, 1997, Vol. 87, Issue 4, 506-19 American Economic Review is currently edited by Esther Duflo.