In this paper, I study the impact of the Most Favored Nation (MFN) principle of the GATT/WTO on the characterization of Pareto-improving bilateral trade agreements. The paper offers four main predictions. First, bilateral trade agreements improve the welfare of negotiating countries and leave...

"In all countries, there are laws and regulations affecting private economic activity. They are necessary to enable private economic activity to thrive, as well as to provide for honesty in information), consumer protection, and much more. Laws and regulations, such as safety standards, quality...