I construct a theory of trade agreements in which nations negotiate over both domestic policies and trade policies in a monopolistically competitve setting. My theory contributes to two trade policy questions: …rst, what problems do trade agreements solve? Second, what explains the evolution of domestic subsidy rules between the GATT and the WTO? I show that trade agreements must solve a …rm-de...

Increasing economic integration has been one of the major forces driving the world economy's impressive growth over the last fortyfive years. Today, however, more than at any time since World War 11, the future of the world trading system is in doubt. Ironically, just as the Soviet Union, Eastern ~ u r o ~ e , and many developing countries rush to join the General Agreement on Tariffs and Trade...

On 15 April 1994, 125 States signed the 'Final Act embodying the results of the Uruguay Round of multilateral trade negotiations', concluded under the aegis of the General Agreement on Tariffs and Trade (GATT). This Final Act contains an 'Agreement on the Application of Sanitary and Phytosanitary Measures' ('SPS Agreement'), which came into effect on 1 January 1995 with the establishment of the...