TY  - RPRT
        AU  - Bandyopadhyay, Subhayu
AU  - Basu, Arnab K.
AU  - Chau, Nancy H.
AU  - Mitra, Devashish
        TI  - On Trade Policy Preference and Offshoring Ties
        PY  - 2022/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15782
        UR  - https://www.iza.org/publications/dp15782
        AB  - 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.
        KW  - offshoring
KW  - dispute settlement reciprocity
KW  - labor standards
        ER  -