Summary

The puzzle of small countries joining WTO is the main subject of this paper. We first organize the pros and cons arguments into a structured controversy. Second, we isolate the increase in market’s extent as a key assumption underlying the expected gains from accession. Third, we break down the possible changes in the extent of the market into two components. A presumably positive change occurring through the granting of Most-Favoured Nation (MFN) status to new member’s exports. And a presumably negative change arising through higher non-tariff barriers faced by new members ’ exports, under the Sanitary and Phytosanitary (SPS) and also Technical Barriers to Trade (TBT) agreements in particular. We make the proxy that the removal of trade barriers epitomizes accession benefits, while the increase of non trade barriers, along with the compliance cost incurred to abide by SPS and TBT rules, point more specifically to membership costs. Fourth, we review evidence on accession benefits and membership costs in the particular case of Vietnam. Our main findings are that Vietnam’s records to date on both accession and memberships benefits and costs are outstanding. Substantial trade barriers were faced by Vietnam exports prior accession’s negotiations, contrary to most of recent new member countries whic