DP11151 | The Purpose of Trade Agreements

Author(s)

Publication Date

03/07/2016

JEL Code(s)

Keyword(s)

Programme Area(s)

Network(s)

Abstract

This paper reviews the literature on governments' motivations for negotiating and joining international trade agreements. I discuss both normative explanations for trade agreements and explanations based on political-economy concerns. Most of the paper focuses on the purpose of multilateral agreements, but I do discuss briefly the reasons we might see governments forming preferential or regional trade agreements that exclude some countries.