In this paper we investigate whether multilateral trade liberalisation undermines or encourages preferential trade liberalisation. We use highly disaggregated data at the tariff-line level and find an 'emulator effect' of multilateral trade liberalisation on preferential trade agreements....

This paper presents a baseline model that illustrates the implications of Mutual Recognition Agreements (MRAs) for excluded nations. The model shows that MRAs can harm third country exports because of a trade-diversion effect. We use highly disaggregated trade data from developed and developing...