MFN club boosts global welfare but leaves non-members worse off
The article discusses how a group of countries can form a club that follows the rule of treating all members equally in trade. This club can improve global welfare but may harm countries not in the club and even make some members worse off. The findings suggest that rules like this are important for fair trade, even if overall trade agreements are limited. Developing countries may receive special treatment in trade agreements because of the impact of these rules on their economies.