Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272409 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15782
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper unpacks the role of the domestic content of imports as a novel source of policy interdependence along the global supply chain. We show how a rise in local contents embodied in imports can skew national trade policy preferences, and pull upstream and downstream countries in asymmetric ways with respect to (i) the nature of unilaterally optimal trade policy prescriptions, and (ii) the attractiveness of leveraging market access-based dispute settlement procedures. We discuss the pros and cons of deep trade integration as a remedy, involving well-enforced labor standards both upstream and downstream as an integral part of trade agreements.
Subjects: 
offshoring
dispute settlement reciprocity
labor standards
JEL: 
F11
F13
F16
F66
O19
O24
Document Type: 
Working Paper

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