The proliferation of preferential trade agreements has posed challenges for the multilateral trading system. But regional trade agreements (RTAs) also allow countries to develop and strengthen trade disciplines beyond what is possible at the multilateral level. In some instances, RTAs explore...

Previous literature has concentrated on the rent transfer accruing to exporting countries when a VER is binding. This paper studies the efficiency and distributional effects arising when VERs force factors out of industries in which they are most productive. A theoretical model of the industry...

In this paper we show that price equalization does not imply zero barriers to trade. There are many barrier combinations that deliver price equalization, but each combination implies a different volume of trade. We demonstrate this first theoretically in a simple two-country model and then...