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Author:Ederington, J.
McCalman, P.
Title:Discriminatory tariffs and international negotiations
Journal:Journal of International Economics
2003 : DEC, VOL. 61:2, p. 397-424
Index terms:Discrimination
Disputes
Trade agreements
Language:eng
Abstract:Recent studies have highlighted the efficiency of the MFN principle within the GATT/WTO structure. This article analyzes the exception made to MFN within Article XXIII that allows discriminatory punishment for deviations from the agreement. It is argued that, in the absence of collusion, the MFN exception reduces the severity of punishment and thus lowers the level of cooperation that can be achieved by the agreement.
SCIMA record nr: 256225
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