Policy choice: Theory and evidence from commitment via international trade agreements

► We examine policy choice and the use of inefficient policies in international trade. ► Governments can gain by committing to constrain tariffs in international agreements. ► Commitment has political value as it improves the government's bargaining position. ► Tariff commitments raise the likelihood and restrictiveness of non-tariff barriers. ► The increase in non-tariff barriers does not offset the original tariff reductions.