Empirical Puzzle, Arguments, and Research Design

Emerging power (EP) states like Brazil and India have benefited quite a bit from their membership in the World Trade Organization (WTO). Participation in the WTO and its predecessor, the General Agreement on Tariffs and Trade (GATT), has facilitated access to new markets and stimulated domestic economic growth by integrating these countries more deeply into the global trading system. The principles of non-discrimination and reciprocity in the GATT and the WTO, for example, not only ensure access to a broad variety of markets. Rather, they additionally ensure access to key markets, like the European Union (EU) or the United States (US), thus helping create and maintain some of the most important trade relationships in both Brazilian and Indian trade policy. Further, by using the WTO’s Dispute Settlement Body (DSB) to enforce global trade rules, Brazil and India have taken advantage of an opportunity to ensure the economic gains resulting from all of these trade relationships are protected (Davey 2005, 2009). These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.