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Sweden has been one of the leading voices for free trade in the post-war era. Its support for the multilateral trading system has been strong. Today is different. Sweden is defensive in services sector that are protected by regulations, belong to the welfare-state domain, or have been perceived...
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More than 170 years ago, Frédéric Bastiat noted in his masterly work Economic Sophisms that the “opposition to free trade rests upon errors, or, if you prefer, upon half-truths.”1 Ever since Adam Smith successfully replaced mercantilist orthodoxy with free trade doctrine in his celebrated...
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the threat of injury by WTO members. Finally, it will deal with the relationship between protectionism and financial …
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of commodities. However, mainstream economic theory does not rule out protectionism as a welfare maximizing policy option … level. The main argument for protectionism is that of infant industry; industries in newly developing countries can only … of the nation imposing tariffs retaliate with a tariff on imports. Choosing or rejecting protectionism should be an …
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Why is further multilateral trade liberalisation proving so difficult to achieve? This paper shows that Article XXIV itself, the set of WTO rules governing trade block formation, undermines the multilateral liberalisation process. Trade block formation under Article XXIV can be thought of as a...
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The North American Free Trade Agreement (NAFTA), which entered into force on 1 January 1994, is an agreement between Mexico, Canada and the United States to ensure that covered goods and services fall under a comprehensive free trade agreement among the three countries. NAFTA included, in...
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