Comparison of Gains for LICs and HICs under the WTO Framework Within the NAFTA Context

Since the 1990s, the global trade system has been shaped by two major institutions: the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA). The WTO, established in 1995, aims to stabilize global trade through multilateral agreements and structured dispute resolution. NAFTA, launched in 1994, created a regional trade bloc comprising the United States, Canada, and Mexico, aiming to promote economic integration by reducing tariffs and non-tariff barriers.This article explores the differential gains achieved by high-income countries (HICs) and low-income countries (LICs) within the WTO framework in the context of NAFTA. While all three NAFTA membersthe United States, Canada, and Mexicobenefited from WTO membership, the nature and extent of their gains vary. Using a comparative analysis of institutional influence, trade structure, and dispute participation, the study reveals that HICs enjoy broader rule-shaping advantages, while LIC-like members, such as Mexico, face structural and policy constraints that limit their ability to gain. The findings highlight that WTO participation reinforces existing hierarchies in global trade unless accompanied by targeted domestic upgrading.