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Sanctions-Busting And The Signing Of New Preferential Trade Agreements And Bilateral Investment Treaties, Yi-Hao Su
Legacy Theses & Dissertations (2009 - 2024)
Why does the imposition of sanctions sometimes encourage the signing of new preferential trade agreements (PTAs) and bilateral investment treaties (BITs) between target states and their trade partners? I develop the theory that “trade plants the flag” and the argument of “chomping at the BIT” to explain how the trade-based and foreign direct investment (FDI)-based sanctions-busting behavior of firms drives their home governments to sign new PTAs and BITs with target states. The notion that “trade plants the flag” reveals that sanctions-busting firms exercise political influence on governments to reinforce their competitiveness in sanctioned states by concluding the PTA negotiation. …