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May 16, 2026AEA Papers and Proceedings

Geopolitics and Shallow Integration

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Authors

AMAaditya MattooMRMichele RutaRSRobert W. Staiger

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Overview

Randomized trial examines trade cooperation under geopolitical rivalry, suggesting policy flexibility remains effective.

Key Points

  • This paper aims to explore how shallow integration in trade policy interacts with geopolitical dynamics, particularly under conditions of rivalry between nations.
  • Formal analysis of trade principles including reciprocity and MFN in the context of geopolitical rivalry.
  • Incorporation of domestic standards alongside tariffs in the evaluation of shallow integration strategies.
  • Shallow integration's effectiveness persists even amid geopolitical tensions, supporting the viability of GATT/WTO principles.
  • Negotiating tariff bindings while maintaining domestic policy flexibility can still lead to efficient trade cooperation.

Cite This Study

Mattoo et al. (2026) studied this question.

synapsesocial.com/papers/6a0809bea487c87a6a40b7fahttps://doi.org/10.1257/pandp.20261014
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