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CEP discussion paper
The 'Emulator Effect' of the Uruguay Round on US Regionalism.
Marco Fugazza and Frédéric Robert-Nicoud
March 2010
Paper No' CEPDP0973:
Full Paper (pdf)

JEL Classification: F13; F14; F15; N70

Tags: regionalism; multilateralism; stumbling bloc; uruguay round

Using a detailed data set at the tariff line level, we find an emulator effect of multilateralism on subsequent regional trade agreements involving the US. We exploit the variation in the frequency with which the US has granted immediate duty free access (IDA) to its Free Trade Area partners across tariff lines. A key finding is that the US has granted IDA status especially on goods for which it had cut the multilateral MFN tariff during the Uruguay round the most. Thus, the Uruguay Round (multilateral) ‘concessions’ have emulated subsequent (preferential) trade liberalisation. We conclude from this that past liberalisation sows the seeds of future liberalisation and that multilateral and preferential trade agreements are dynamic complements.

The Emulator Effect of the Uruguay Round on US Regionalism, Marco Fugazza and Frederic Robert-Nicoud, Review of International Economics, Volume 22, Issue 5, November 2014