Current U.S. trade policy stresses establishing free trade areas (FTAs) with partners spanning the globe. Motivations include enhancing goods and services trade; stimulating investment flows; extending standards on intellectual property rights, labor, and the environment; and addressing geopolitical concerns. Simulations of FTAs with the United States highlight the importance of trade complementarity, trade diversion, and welfare losses for nonmembers. Agriculture and textiles play a central role in determining welfare outcomes. Initial improvement in market access enjoyed by participants could be eroded progressively as global liberalization proceeds, and this preference erosion might act as a disincentive to participate in multilateral liberalization.
"The central theme of this book is the utility of bilateralism and multilateralism in Southeast Asia international relations. The intention was to examine a sufficient number of empirical cases in the Southeast Asian region since the mid-1970's so as to establish a pattern of interactions informing a wider audience of interactions unique to the region. Through these case studies, we seek to identify how this pattern of interaction compares with similar experiences elsewhere vis-a-vis the theoretical underpinnings of multilateralism and bilateralism. Consequently, this book also examines the theoretical drift in international relations literature at the broadest level and the overall drift of Southeast Asian international relations between the nations themselves and the Association of Southeast Asian Nations (ASEAN)."--P. xv.
This new book highlights the multifaceted effects of regional trade agreements and outlines the strategic options for EU trade policy. It points out what is new about this most recent phase of regionalism and analyzes the effects on economic welfare and trade transaction costs. The authors draw upon elements of game theory to explore a self-reinforcing mechanism that is resulting in a potentially damaging race for markets. They focus in particular on the multiple impacts of regionalism on the WTO and the multilateral trading order. The book arrives at an opportune time, as the Doha Round is reaching a critical phase.
As multilateral negotiations become increasingly complex and protracted, preferential trade agreements have become the center of trade diplomacy, pushing beyond tariffs into deep integration and beyond regionalism into a web of bilateral deals, raising concerns about coercion by bigger players. This study examines American, European and Asian approaches to preferential trade agreements and their effects on trade, investment and economic welfare. It draws on theoretical works, but also examines the actual substance of agreements negotiated and envisaged.--Publisher's description.
November 1996 Do the forces that regional integration arrangements set up encourage or discourage a trend toward globally freer trade? We don't know yet. The literature on regionalism versus multilateralism is growing as economists and political scientists grapple with the question of whether regional integration arrangements are good or bad for the multilateral system. Are regional integration arrangements building blocks or stumbling blocks, in Jagdish Bhagwati's phrase, or stepping stones toward multilateralism? As economists worry about the ability of the World Trade Organization to maintain the GATT's unsteady yet distinct momentum toward liberalism, and as they contemplate the emergence of world-scale regional integration arrangements (the EU, NAFTA, FTAA, APEC, and, possibly, TAFTA), the question has never been more pressing. Winters switches the focus from the immediate consequences of regionalism for the economic welfare of the integrating partners to the question of whether it sets up forces that encourage or discourage evolution toward globally freer trade. The answer is, We don't know yet. One can build models that suggest either conclusion, but these models are still so abstract that they should be viewed as parables rather than sources of testable predictions. Winters offers conclusions about research strategy as well as about the world we live in. Among the conclusions he reaches: * Since we value multilateralism, we had better work out what it means and, if it means different things to different people, make sure to identify the sense in which we are using the term. * Sector-specific lobbies are a danger if regionalism is permitted because they tend to stop blocs from moving all the way to global free trade. In the presence of lobbies, trade diversion is good politics even if it is bad economics. * Regionalism's direct effect on multilateralism is important, but possibly more so is the indirect effect it has by changing the ways in which groups of countries interact and respond to shocks in the world economy. * Regionalism, by allowing stronger internalization of the gains from trade liberalization, seems likely to facilitate freer trade when it is initially highly restricted. * The possibility of regionalism probably increases the risks of catastrophe in the trading system. The insurance incentives for joining regional arrangements and the existence of shiftable externalities both lead to such a conclusion. So too does the view that regionalism is a means to bring trade partners to the multilateral negotiating table because it is essentially coercive. Using regionalism for this purpose may have been an effective strategy, but it is also risky. This paper - a product of the International Trade Division, International Economics Department - was prepared for a conference on regional integration sponsored by the Centre for Economic Policy Research, La Coru-a, Spain, April 26-27, 1996, and will appear in the conference proceedings.
Beyond Bilateralism analyzes how, and to what extent, crucial global and regional security, finance, and trade transformations have altered the U.S.-Japan relationship and how that bilateral relationship has in turn influenced those global and regional trends.
Regional economic arrangements such as free trade areas (FTAs), customs unions, and currency blocs, have become increasingly prevalent in the world economy. Both pervasive and controversial, regionalization has some economists optimistic about the opportunities it creates and others fearful that it may corrupt fragile efforts to encourage global free trade. Including both empirical and theoretical studies, this volume addresses several important questions: Why do countries adopt FTAs and other regional trading arrangements? To what extent have existing regional arrangements actually affected patterns of trade? What are the welfare effects of such arrangements? Several chapters explore the economic effects of regional arrangements on patterns of trade, either on price differentials or via the gravity model on bilateral trade flows. In addition, this book examines the theoretical foundation of the gravity model. Making extensive use of the gravity model of bilateral trade, several chapters explore the economic effects of regional arrangements. In addition, this book examines the theoretical foundation of the gravity model.
This book provides an in-depth analysis of "Mega-Regionals", the new generation of trans-regional free-trade agreements (FTAs) currently under negotiation, and their effect on the future of international economic law. The main focus centres on the EU-US Transatlantic Trade and Investment Partnership (TTIP), the Trans-Pacific Partnership (TPP) and the EU-Canada Comprehensive Economic and Trade Agreement (CETA), but the findings are also applicable to similar agreements under negotiation, such as the Regional Comprehensive Economic Partnership (RCEP).The specific features of Mega-Regional Trade Agreements raise a number of issues with respect to their potential effect on the current system of international trade and investment law. These include the consequences of Mega-Regionals for the most-favoured-nation (MFN) principle, their relation to the multilateral system of the World Trade Organization (WTO), their democratic legitimacy and their interaction with existing bilateral investment treaties (BITs).The book is intended for academics and practitioners working in the field of international economic law.
The history of the world trading system and international trade agreements is characterised by shifts between bilateralism, regionalism and multilateralism. Bilateralism has recently returned, having gained momentum following the failed WTO negotiations at the 1999 Seattle Ministerial Conference. The result is that today's international trade rules are now a complex web of instruments and agreements. This volume contains case studies of selected bilateral and regional free trade agreements (FTAs), covering a wide range of countries, regions and key issues such as intellectual property and agriculture. Authored by leading scholars, practitioners and governmental officials, each case study provides a comprehensive review of the negotiating history and result of the selected agreement. Each study can serve as an in-depth examination of a particular FTA, and the group of case studies can be used to compare and contrast the coverage of different FTAs or to examine the FTAs signed by a particular country.
