Incentives of small countries to participate in a global free trade agreement in agriculture: a theoretical analysis
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During the last two decades a number of international rounds
have been carried out with the objective of reaching a global free trade agreement in agriculture
(GFTA). However, little progress has been made. A recent theoretical research based on the new
literature on international trade networks revealed that the existing lack of agricultural liberalisation
could equate to a structural problem under the assumption of identical countries in market
size. The present article extends this new research to study in particular the incentives of small
countries such as Chile to deviate from GFTA (i.e. when countries are asymmetric in market size)