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71. Omens and Threats in the Doha Round: The Decline of Multilaterialism?

Author:
Daniel Drache and Marc D. Froese
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Institute on Globalization and the Human Condition, McMaster University
Abstract:
Faced with the lengthening shadow of the Doha Round of trade negotiations, scholars often point to the seven years it took negotiators to conclude the Uruguay Round. This paper argues that the negotiating deadlock in the Doha Round represents a transformative shift on the part of Member nations away from the current model of multi-platform, single-undertaking multilateralism and towards smaller negotiating platforms. We examine two dynamics that mark this round as qualitatively different from the Uruguay Round. First, new, highly vocal global trading powers such as India, China and Brazil have begun to use their market power to push for a trade deal that directly benefits the Global South. Second, the new rules for trade that were agreed to in the Uruguay Round had promised a reduction in non-tariff protectionism, but the continuing popularity of protectionist industrial policies has shown the developing world that greater access to northern markets might not be delivered at the World Trade Organization. The paper concludes with a discussion of trade multilateralism in historical context. This is not the first time the world has been faced with systemic changes in international economic relations. In the nineteenth and the early twentieth centuries, global trade broke down – first with the end of the British free trade system, and shortly thereafter with the catastrophic collapse of the interwar trading order. Nevertheless, this qualitative shift in the negotiating strategies of states need not be seen as a return to protectionism. The explosion of preferential regional agreements offers a number of new ways to address the social and political dimensions of economic integration.
Topic:
Agriculture, Globalization, International Organization, International Trade and Finance, Post Colonialism, Sovereignty, Treaties and Agreements, and World Trade Organization
Political Geography:
China and Brazil

72. Vote-trading in International Institutions

Author:
Ofer Eldar
Publication Date:
02-2008
Content Type:
Journal Article
Abstract:
There is evidence that countries trade votes among each other in international institutions on a wide range of issues, including the use of force, trade issues, and elections of judges. Vote-trading has been criticized as being a form of corruption, undue influence, and coercion. Contrary to common wisdom, however, I argue in this article that the case for introducing policy measures against vote-trading cannot be made out on the basis of available evidence. This article sets out an analytical framework for analysing vote-trading in international institutions, focusing on three major contexts in which vote-trading may generate benefits and costs: (1) agency costs (collective good), (2) coercive tendering, and (3) agency costs (constituents). The applicability of each context depends primarily on the type of decision in question – i.e. preference-decision or judgement-decision – and the interests that countries are expected to maximize when voting. The analytical framework is applied to evidence of vote-trading in four institutions, the Security Council, the General Assembly, the World Trade Organization, and the International Whaling Commission. The application of the analysis reveals that while vote-trading can create significant costs, there is only equivocal evidence to this effect, and in several cases vote-trading generates important benefits.
Topic:
World Trade Organization

73. The Concept of Appeal in International Dispute Settlement

Author:
Noemi Gal-Or
Publication Date:
02-2008
Content Type:
Journal Article
Abstract:
The WTO Appellate Body represents an innovation in international law in that an international adjudication authority now operates as a final instance to hear appeals arising from international arbitral (panel) procedures. It is thereby strongly emulating domestic appellate courts without, however, possessing the characteristics that make appellate courts the institutions of justice that they are. Following this trend in a cutting-edge fashion are several other inter-governmental arrangements that had been either concluded (Central America Free Trade Agreement (CAFTA), the Olivos Protocol in the Southern Common Market (Mercosur)) or proposed (the US Congresses' 2002 Trade Promotion Authority Act, the ICSID Discussion Paper of 22 October 2004, the third draft Free Trade Area for the Americas). They embrace the concept of a permanent international instance for appeal from arbitral awards, particularly regarding investment agreements including also disputes arising between the state (public) and the individual legal person (private).
Topic:
International Law and World Trade Organization
Political Geography:
America

74. The Sociology of International Economic Law: Sociological Analysis of the Regulation of Regional Agreements in the World Trading System

Author:
Moshe Hirsch
Publication Date:
04-2008
Content Type:
Journal Article
Abstract:
International economic law (IEL) is influenced by diverse theoretical approaches. This article emphasizes that international economic activity is a social phenomenon and international trade should also be conceived as a specific type of social interaction. The scarcity of sociological analysis in contemporary IEL literature does not diminish the influence of social factors that are active in the under-explored layer of the international economic arena. Sociological analysis may recast well-known dilemmas in a different manner and generate insights regarding better legal mechanisms for coping with modern challenges faced by IEL. These properties of sociological analysis are illustrated in this article, which addresses one of the most challenging dilemmas in current IEL literature: the relationship between the World Trade Organization (WTO) and regional trade agreements (RTAs). The underlying argument of this article is that the economic dimension of RTAs is overlaid with a sociological dimension. Consequently, the global/regional debate is analysed with new conceptual tools: sociological theories, mainly the structural-functional perspective, the symbolic-interactionist approach, and the social conflict perspective. The core sociological theories lead to different conceptions of IEL and different interpretations of existing WTO legal provisions regarding RTAs. This article argues that while each of the above sociological approaches underscores certain significant aspects of the global/regional debate, the symbolic-interactionist perspective should generally serve as a point of departure for law- and policy-making in this sphere. This approach suggests that the relevant WTO legal rules should be interpreted in a liberal manner.
Topic:
Economics, International Law, and World Trade Organization

75. Determining the Necessity of Domestic Regulations in Services: The Best is Yet to Come

Author:
Panagiotis Delimatsis
Publication Date:
04-2008
Content Type:
Journal Article
Abstract:
A necessity test is a tool that reflects the balance between each country's prerogative to regulate in its own jurisdiction and the multilateral interest in progressive liberalization of services trade. Experience gained in goods trade indicates that the principle of necessity can be a useful proxy allowing the judiciary of the World Trade Organization (WTO) to draw the dividing line between legitimate regulation and protectionist abuse. This article explores the possibility of creating a necessity test that would be applicable to all services sectors. Such a horizontal test may yet emerge from the current negotiations within the Working Party on Domestic Regulation (WPDR), which aim to fulfil the legal mandate contained in Article VI(4) of the General Agreement on Trade in Services (GATS or the 'Agreement'). At the core of this mandate, as clarified by various negotiating documents, lies the requirement that Members ensure that domestic regulatory measures relating to licensing, qualifications, and technical standards do not constitute unnecessary barriers to trade in services.
Topic:
World Trade Organization

76. Overcoming Jurisdictional Isolationism at the WTO–FTA Nexus: A Potential Approach for the WTO

Author:
Caroline Henckels
Publication Date:
06-2008
Content Type:
Journal Article
Abstract:
The proliferation of free trade agreements which share dispute settlement jurisdiction with the WTO has added to claims of disintegration within international trade law. Recent WTO jurisprudence is indicative of the limits of WTO members' ability to invoke provisions of an FTA as a 'jurisdictional defence' where the dispute implicates trade measures under both WTO and FTA rules. Such uncertainty in the law has the potential not only to create issues of incoherent jurisprudence, but also to threaten the stability and predictability of the multilateral trading system. These issues are likely to continue to arise as FTAs continue to grow in abundance while the Doha round is stalled. Based on analysis of a selection of state-state disputes before other fora such as the International Court of Justice, this article argues that in the interest of the effective administration of justice, the WTO's judicial organ should use its inherent power of comity to decline to exercise jurisdiction so that the dispute can be resolved by an FTA tribunal where a dispute is inextricably connected with a dispute under an FTA and that exercising jurisdiction would not be reasonable in the circumstances.
Topic:
World Trade Organization

77. Pricing Farmers out of Cotton: The costs of World Bank reforms in Mali

Publication Date:
03-2007
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Mali is one of the world's poorest countries, with over two-thirds of the population – mostly in rural areas – living on less than a dollar a day. Mali is also the second largest cotton producer in sub-Saharan Africa after Burkina Faso. Cotton production is generally heralded as a success story in much of West and Central Africa, providing a critical development strategy for poor African countries such as Mali and enabling both governments and farm households to access income. The World Bank, International Monetary Fund (IMF), and the wider donor community have also recognised the importance of cotton in reducing poverty and supporting the country's economy. However, in recent years, much of this success has been undermined by depressed and volatile cotton prices, partly as the result of unchecked US subsidies, and the downward trend of commodity prices.
Topic:
Agriculture, International Organization, International Trade and Finance, Treaties and Agreements, and World Trade Organization
Political Geography:
Africa, United States, and Mali

78. All costs, no benefits: How TRIPS-plus intellectual property rules in the US-Jordan FTA affect access to medicines

Publication Date:
03-2007
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Since enactment of the TRIPS (Trade Related Aspects of Intellectual Property Rights) Agreement in 1995, the USA has imposed progressively higher levels of intellectual property protection (TRIPS-plus rules) on developing countries, which undermines access to affordable medicines. The US-Jordan free trade agreement (FTA) introduced a rigid framework of TRIPS-plus rules that the USA continues to impose on developing countries, although subsequent FTAs have even stricter levels of intellectual property (IP) protection. Jordan was also required to increase the level of IP protection under the terms of its accession to the World Trade Organization (WTO).
Topic:
Health, Treaties and Agreements, World Trade Organization, and Intellectual Property/Copyright
Political Geography:
United States, Middle East, and Jordan

79. Autonomy and Domination within the Global Trade System: Developing Countries in the Quest for a Democratic WTO

Author:
Anna Lanoszka
Publication Date:
10-2006
Content Type:
Working Paper
Institution:
Institute on Globalization and the Human Condition, McMaster University
Abstract:
Power relations shape the world economy. The system of international economic transactions has been persistently asymmetrical as it consists of highly industrialized states as well as of many poorer countries at different levels of economic development. The dominant position of the rich developed countries cannot be simply assumed away, even in the rules-based World Trade Organization (WTO) guided by the principles of international law.
Topic:
International Relations, International Political Economy, International Trade and Finance, Treaties and Agreements, and World Trade Organization

80. Oxfam Publishing: What happened in Hong Kong?: Initial analysis of the WTO Ministerial, December 2005

Author:
Duncan Green
Publication Date:
12-2005
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
The WTO Hong Kong ministerial meeting was a lost opportunity to make trade fairer for poor people around the world. Rich countries put their commercial interests before those of developing countries. Small progress in agriculture was more than cancelled out by anti-development texts in services and industrial tariffs. Most of the difficult decisions were put off to a further meeting in early 2006.
Topic:
International Relations, International Trade and Finance, and World Trade Organization
Political Geography:
Hong Kong