Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note

Sakshi Pandey

Abstract

More may not necessarily be better if the goal of legalization is to strengthen international collaboration. Finding a balance between lowering the risks of opportunism and lowering the possible negative impacts of legalization on domestic political processes is necessary to achieve the ideal degree of legalization. Over time, the global trade system, which attempts to liberalize commerce, has become more and more lawful. The nature of governmental duties and the information environment have altered as a result of increased legalization, which has also had an impact on how domestic interest groups mobilize around trade issues. We offer some potential negative implications of legalizing from the standpoint of promoting the future growth of liberal trade, contending that these effects must be evaluated against the favourable benefits of legalization on raising national compliance. Since the weakly legalized GATT institution was successful in sustaining extensive liberalization, a compelling argument for additional legalization is necessary to support significant change in the international trading system.