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7611. The Politics of NAFTA: Presidential use of Side Payments

Author:
Miquel Ángel Valverde
Publication Date:
01-1997
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
In June 1990, President George Bush and Mexican President Carlos Salinas de Gortari announced their intention to begin negotiating a free trade agreement. Canada joined the negotiations the following August. The proposed North American Free Trade Agreement (NAFTA) provoked an intense lobbying campaign in the US Congress, in what became a major political battle for its congressional approval. Some economic interests would win, others would lose with NAFTA. Congress members were worried about the loss of American low-skilled jobs and environmental issues. Regional interests were voiced loudly in the House of Representatives. A loose coalition of interest groups, including the AFL-CIO, public interest groups, and environmental organizations, coordinated opposition to the agreement. On the pro-NAFTA side was an ad hoc group of corporations, labeled USA-NAFTA, which included the National Association of Manufacturers and the US Chamber of Commerce. The Mexican government mounted an extensive lobbying campaign in favor of the trade pact. After intense congressional lobbying, President Bush obtained fast-track negotiating authority for NAFTA. Negotiations concluded in August 1992, and the following December, Presidents Bush and Salinas, as well as Canada's Prime Minister Mulroney, signed the pact, Presidential candidate Bill Clinton, under intense pressure from key constituencies of the Democratic Party, supported NAFTA "in principle," but only if complementary agreements on labor and environmental issues were included. Once in the office, Clinton negotiated these "side agreements" with Mexico and Canada, but still, strong opposition to NAFTA continued. In order to win congressional votes needed for the pact's approval, President Clinton engaged in a series of political compromises or "side-payments" with legislators, being able to form a congressional bipartisan coalition that allowed NAFTA passage.
Topic:
Economics, International Trade and Finance, and Politics
Political Geography:
United States, Canada, North America, and Mexico

7612. Interest Groups in American Politics: Conceptual Elements and Key Literature

Author:
Miguel Angel Valverde
Publication Date:
01-1997
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
The objective of this paper is to discuss some concepts and review relevant literature on interest groups in the United States, in order to provide a broad guide to the study of the topic. It aims to explore the main questions raised by their presence in the political arena as well as suggest some themes for future research.
Topic:
International Relations, Economics, and Politics
Political Geography:
United States and America

7613. Assessing the Rules - Power Debate in Farm Trade: A Case Study of the Canadian-U.S. Free Trade Agreement

Author:
Imtiaz Hussain
Publication Date:
01-1997
Content Type:
Working Paper
Institution:
Centro de Investigación y Docencia Económicas
Abstract:
Asking "How have trade disputes over agriculture been settled in North America?", this study examines 11 appeals made to binational panels established under Chapter 19 of the Canada-U.S. Free Trade Agreement of 1989. By disaggregating the process of dispute settlement into complaints, rulings, country responses, and overall settlement, it reassesses an old debate (whether dispute outcomes are influenced by collective rules or the pursuit of self-help) and sheds new light. Whereas extant studies make the argument, through a study of appeals to G.A.T.T., that collective rules temper the blind pursuit of self-help, this study makes the argument that self-help is equally important an explanation. Whereas the former focus on outcomes which are non-binding, this study focuses on outcomes which are binding. Implications are drawn, at a time when domestic interests, nationalistic sentiments, and supranational pursuits compete to influence policy outcomes at all levels, for agriculture, integration in North America, and dispute settlement at the multilateral level.
Topic:
Agriculture, Economics, and International Trade and Finance
Political Geography:
United States, Canada, and North America

7614. The United States and the 'New World Order':

Author:
Bjorn Møller
Publication Date:
06-1997
Content Type:
Working Paper
Institution:
Danish Institute for International Studies
Abstract:
The 1991 Gulf War was accompanied by talk of a 'New World Order', not least in the USA. The implied promise was one of a greater respect for international law, a strengthening of the United Nations and a determined effort for arms control and disarmament, both globally and regionally. The paper evaluates developments since then, with a special focus on the accomplishments in the military sphere. In particular, it assesses the contribution of the United States to the creation of this new world (military) order. In conclusion, the US is found to be both part of the problem, because of its excessive military spending and penchant for unilateralism, and an indispensable part of the solution.
Topic:
International Relations, Foreign Policy, Arms Control and Proliferation, International Law, and United Nations
Political Geography:
United States

7615. Domestic Structures and Democratic Foreign Policy: Peacemaking After World War II

Author:
Norrin Ripsman
Publication Date:
07-1997
Content Type:
Working Paper
Institution:
Christopher H. Browne Center for International Politics, University of Pennsylvania
Abstract:
Unlike the comparative political economy literature, the literature on foreign security policy treats democracies as a coherent category of states, focusing on their commonalities rather than their differences. Both classical and contemporary theorists of foreign security policy have emphasized that all democratic states--states that are characterized by popular sovereignty, where the ultimate source of authority resides within the people as a whole -- share certain constitutional, procedural and normative features which affect the nature and content of their foreign security policies in similar ways. Using this logic, traditional Realists have argued that public involvement in the policy process makes democracies slow to react to international threats, reluctant to spend on defense, incapable of secrecy and war-averse; consequently, they conclude that democracies are at a disadvantage in international politics, where balance-of-power policies are necessary. Liberals, on the other hand, argue that democracies enjoy certain advantages at international bargaining, devote more aggregate resources to implementing their foreign and security policies, and are less likely than non-democratic states to have their policies subverted to serve the particular interests of their leaders, private interest groups or foreign countries. Moreover, as democratic peace theorists have recently argued, shared political norms and common political procedures prevent democracies from waging war against other democracies.
Topic:
Security, Foreign Policy, Government, and Peace Studies
Political Geography:
United States, United Kingdom, Europe, and France

7616. The Dynamics of Industry Structure: The Chemical Industry in the US, Western Europe, and Japan in the 1980s

Author:
Ashish Arora and Alfonso Gambardella
Publication Date:
03-1997
Content Type:
Working Paper
Institution:
Institute of European Studies
Abstract:
This paper analyzes the evolution of the structure of the chemical industry in the US, Europe, and Japan. Differences in institutions, historical conditions, and resource endowments across the three regions reinforce differences in initial conditions. However, technological innovation, the internationalization of the industry, and the development and operation of markets, especially markets for technology, capital, raw materials, and corporate control, are powerful forces encouraging convergence. Convergence is less marked at the level of the firm than at the level of the industry, and is more marked between the industries of Western Europe and the United States.
Topic:
Globalization and Industrial Policy
Political Geography:
United States, Japan, and Europe

7617. Proceedings: START II, Missile Non-Proliferation, and Missile Defense

Author:
Alexander Pikayev, Alexei Arbatov, Richard Speier, Rodney W. Jones, John Pike, Michael Nacht, Linton Brooks, Stephen Cambone, Seth Carus, Robert Einhorn, Ronald Lehman II, McCarthy Tim, Yuri Nazarkin, Keith Payne, Henry Sokolski, and Mikhail Streltsov
Publication Date:
02-1996
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The first panel focused on the U.S. and Russian stakes in strategic arms control, the prospects for START II ratification in Russia, the status of START III issues, and the possibilities for cooperative approaches to the issues of strategic offense-defense interaction. The Russian panelists, Ambassadors Yuri Nazarkin and Mikhail Streltsov, and State Duma member Alexei Arbatov, explained Russia's START II reservations, steps in the ratification process, and expected implementation problems in eliminating Russia's multiple warhead (MIRVed) intercontinental ballistic missiles (ICBMs). On balance, they agreed that START II serves Russia's basic interests, in lower levels of strategic arms, eventual economic savings, and political and military parity with the United States. They acknowledged that the ball is now in Russia's court, and ventured that parliament's approval probably would occur eventually.
Topic:
Security, Arms Control and Proliferation, International Cooperation, and Nuclear Weapons
Political Geography:
Russia and United States

7618. Thinking Regionally: Priorities for U.S. Policy Toward Africa

Author:
Salih Booker
Publication Date:
03-1996
Content Type:
Working Paper
Institution:
Africa Policy Information Center
Abstract:
Recent Congressional action to significantly cut aid to Africa is only one sign among many of a trend to reduce U.S. involvement on the continent. How much further Africa is marginalized in the U.S. will ultimately depend on the ability of Africa's multiple constituencies to reverse this trend. Nevertheless, events on the continent are likely to compel a greater commitment of resources than U.S. policymakers currently contemplate. And engagement at any level needs to be based on clear identification of U.S. interests in Africa and well-defined criteria for establishing priorities.
Topic:
Security, Foreign Policy, Democratization, and Development
Political Geography:
Africa and United States

7619. The Syndrome of the Ever-Higher Yen, 1971-95: American Mercantile Pressure on Japanese Monetary Policy

Author:
Ronald McKinnon, Kazuko Shirono, and Kenichi Ohno
Publication Date:
12-1996
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
From 1971 through mid-1995, the yen continually appreciated against the U.S. dollar because the Japanese and American governments were caught in a mutual policy trap. Repeated threats of a trade war by the United States caused the yen to ratchet up in 1971-73, 1977-78, 1985-87, and 1993 to mid-1995. While temporarily ameliorating commercial tensions, these great appreciations imposed relative deflation on Japan without correcting the trade imbalance between the two countries. Although resisting sharp yen appreciations in the short run, the Bank of Japan validated this syndrome of the ever-higher yen by following a monetary policy that was deflationary relative to that established by the U.S. Federal Reserve System. The appreciating yen was a forcing variable in determining the Japanese price level. After 1985, this resulted in great macroeconomic instability in Japan--including two endaka fukyos (high-yen-induced recessions).
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
United States, Japan, America, Israel, and East Asia

7620. The China-United States Bilateral Trade Balance: How Big Is It Really?

Author:
K.C. Fung and Lawrence Lau
Publication Date:
04-1996
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
There are huge discrepancies between the official Chinese and U.S. estimates of the bilateral trade balance. The discrepancies are caused by different treatments accorded to re-exports through Hong Kong, re-export markups, and trade in services. Deficit-shifting between China, on the one hand, and Hong Kong and Taiwan, on the other, due to direct investment in China from Taiwan and Hong Kong, is partly responsible for the growth in the China United States bilateral trade deficit.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
United States, China, Taiwan, Asia, and Hong Kong