?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.title=Negotiating+free+trade&rft.creator=Aghion%2C+P.&rft.creator=Antras%2C+P.&rft.creator=Helpman%2C+E.&rft.description=We+develop+a+dynamic+bargaining+model+in+which+a+leading+country+endogenously+decides+whether+to+sequentially+negotiate+free+trade+agreements+with+subsets+of+countries+or+engage+in+simultaneous+multilateral+bargaining+with+all+countries+at+once.+We+show+how+the+structure+of+coalition+externalities+shapes+the+choice+between+sequential+and+multilateral+bargaining%2C+and+we+identify+circumstances+in+which+the+grand+coalition+is+the+equilibrium+outcome%2C+leading+to+worldwide+free+trade.+A+model+of+international+trade+is+then+used+to+illustrate+equilibrium+outcomes+and+how+they+depend+on+the+structure+of+trade+and+protection.+Global+free+trade+is+not+achieved+when+the+political-economy+motive+for+protection+is+sufficiently+large.+Furthermore%2C+the+model+generates+both+building+bloc'+and+stumbling+bloc'+effects+of+preferential+trade+agreements.+In+particular%2C+we+describe+an+equilibrium+in+which+global+free+trade+is+attained+only+when+preferential+trade+agreements+are+permitted+to+form+(a+building+bloc+effect)%2C+and+an+equilibrium+in+which+global+free+trade+is+attained+only+when+preferential+trade+agreements+are+forbidden+(a+stumbling+bloc+effect).+The+analysis+identifies+conditions+under+which+each+of+these+outcomes+emerges.&rft.publisher=National+Bureau+of+Economic+Research&rft.date=2004-09&rft.type=Working+%2F+discussion+paper&rft.language=eng&rft.source=++++(NBER+Working+Papers++10721).+National+Bureau+of+Economic+Research%3A+Cambridge%2C+US.+(2004)+++++&rft.format=application%2Fpdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F17782%2F1%2F17782.pdf&rft.identifier=https%3A%2F%2Fdiscovery.ucl.ac.uk%2Fid%2Feprint%2F17782%2F&rft.rights=open