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Reciprocal Tariff Reductions Under Asymmetric Bargaining Power

Freund, Florian



Abstract

Increasing heterogeneity of participants that form the basis of WTO trade negotiations has raised concerns about unfair treatment of weak countries due to their lack of bargaining power. The WTO responds to these concerns by arguing that the institutional design with its specific rules such as the principle of reciprocity serves to reduce inequalities in bargaining power by giving smaller ...

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