This is a highly readable, completely revised and updated analytical account of the mechanics of the world trading system - how it works, what it does, and why. It provides insight into the basic economic rationale for international cooperation and the political economic forces that shape the global commercial environment and that determine the rules of the game and the commitments that governments agree to through WTO negotiations. Short case studies and specificdisputes are used to illustrate the workings of the institution in practice and the interest groups that drive the WTO processes. This edition highlights the increasing role of developing countries inthe WTO. This is a book that will be of interest to teachers and students of international economics and business, international relations and economic development, government officials and business people interested in the functioning of the multilateral trading system.
The creation of the World Trade Organization (WTO) in 1995 ushered in a new era in world trading arrangements. Building on the General Agreement on Trades and Tariffs (GATT), the intergovernmental treaty that for 50 years had regulated international trade relations, the WTO is a global organization of equal standing to the International Monetary Fund and the World Bank, and will set the agenda for international trade for decades to come. The authors of this volume were heavily involved in the Uruguay Round of GATT negotiations that laid the foundations for the creation of the WTO, and were ideally placed to see how the politics of negotiation affects the economics of trade. The Political Economy of the World Trading System is the first comprehensive and accessible introduction to the institutional mechanics, economics, and politics of the global trading networks. It goes beyond description of the rules of the WTO to analyse the political and economic forces that sculpted them, the incentives for countries to abide by them, and the likely future direction of the organization. The authors show how governments are not necessarily the social welfare-maximizing entities often found in textbooks, but instead develop policy subject to the pressures of a variety of interest groups. Although economic theory suggests that countries should pursue liberal trade policies and exchange goods and services on the basis of their comparative advantage, in practice most nations actively intervene in international trade. The political economy approach taken in this volume explains how the WTO functions, why GATT has been very successful in reducing tariffs, and why it has proven much more difficult to expand the reach of multilateral disciplines to domestic policies impacting on trade. This book will increase the reader's understanding of international economics, business, and international relations by supplying in-depth insider knowledge of how trade negotiations take place, how this decision-making affects trade policy, and how the multilateral arrangements that shape world trade are created. This information is crucial to understand why WTO rules are phrased as they are, and to understand the processes by which business organizations, industrial associations, and political lobbies influence the multilateral trading system. In this expanded and thoroughly revised edition, the authors have taken account of the recent developments in international trade relations, included an extra chapter on the historical importance of international trading arrangements, and updated all the references and guides to further reading.
Law and Policy of International Economic Relations
Author: John Howard Jackson
Publisher: MIT Press
Category: Business & Economics
Since the first edition of The World Trading System was published in 1989, the Uruguay Round of trade negotiations has been completed, and most governments have ratified and are in the process of implementing the General Agreement on Tariffs and Trade (GATT). In the Uruguay Round, more than 120 nations negotiated for over eight years, to produce a document of some 26,000 pages. This new edition of The World Trading System takes account of these and other developments. Like the first edition, however, its treatment of topical issues is grounded in the fundamental legal, constitutional, institutional, and political realities that mold trade policy. Thus the book continues to serve as an introduction to the study of trade law and policy. Two basic premises of The World Trading System are that economic concerns are central to foreign affairs, and that national economies are growing more interdependent. The author presents the economic principles of international trade policy and then examines how they operate under real- world constraints. In particular, he examines the extremely elaborate system of rules that governs international economic relations. Until now, the bulk of international trade policy has addressed trade in goods; issues inadequately addressed by policy include trade in services, intellectual property rights, certain investment measures, and agriculture. The author highlights the tension between legal rules, designed to create predictability and stability, and the governments need to make exceptions to solve short-term problems. He also looks at weaknesses of international trade policy, especially as it applies to developing countries and economies in transition. He concludes with a look at issues that will shape international trade policy well into the twenty-first century.
China's rise as an economic powerhouse raises a number of questions that are the subject of lively debate. How did the country do it? How applicable are the lessons of China's economic reform of the past thirty years to the challenges it faces in the next three decades? What does the detailed pattern of China's success and challenges look like at the sub-sectoral and sub-national levels, and what does this mean for future policy? How will China's role as a global economic player evolve? The Oxford Companion to the Economics of China presents an original collection of perspectives on the Chinese economy's past, present, and future: 99 entries written by the leading China analysts of our time. The topics covered include: the China model, future prospects for China , China and the global economy, trade and the Chinese economy, macroeconomics and finance, urbanisation, industry and markets, agriculture and rural development, land, infrastructure, and environment, population and labour, dimensions of wellbeing and inequality, health and education, gender equity, regional divergence in China, and a selection of perspectives on some of China's provinces. The Editors are four global leaders in Chinese economic analysis and policy who between them have held or hold the following positions: Director General, International Food Policy Research Institute; Co-Editor, China Economic Review; President Chinese Economists Society; Assistant Director of Research at the IMF; Principal Adviser to the Chief Economist of the World Bank; and Professors of Economics at Ivy League Universities.
The Economics of Regional Trading Arrangements provides a unified analysis of policies which discriminate among trading partners. Regionalism became a major issue in international commercial diplomacy during the early 1990s. The proliferation of RTAs was viewed by some as a challenge, and by others as a complement, to the establishment of the World Trade Organization as the successor to GATT. This book analyses the new RTAs. It situates them in the broader realm of discriminatorytrade polices for which there is a well-defined body of theory and empirical studies, before asking whether the new regionalism requires new theoretical analysis. The approach is to combine in roughly equal proportions history, theory, and a review of empirical studies. This is appropriate given the key theoretical result is the welfare ambiguity of discriminatory trade policy changes. Empirical studies can provide a sense of which of the potentially offsetting effects are more or less important. Since some effects may take a long time to have their full impact and may be systemic, it is also useful to observe how RTAs have evolved in practice.
The splintering of the multilateral trading system into a number of trading blocs and arrangements has been one of the most important issues in international economics, particularly after the establishment of the World Trade Organisation in 1995 and especially after the launch of the Doha Round in 2001. International economic integration has played a significantpart in the economic policy decisions for most countries and regions throughout the world over decades. If this is so, why then has the success of integration schemes been so variable? And what are the prospects for integration in the future? Is integration a building or a stumbling block onthe way to universal free trade? This book addresses these crucial questions. The book builds on and extends earlier research and publications by the author and presents new and up-to-date material. The author continues to broaden and deepen traditional integration theory using a new model thatincorporates market imperfections such as economies of scale, foreign direct investment and an evolutionary approach to the spatial location of firms and industries. This reflects modern approaches to trade, competition, investment and the geographical distribution of production. The main theoretical types of integration free trade areas, customs unions, common markets and economic unions - are discussed in detail with the help of a number of practical examples. These considerations have a European slant as this is the area where economic integration has the deepest meaning and because the EU serves as a model for a number of integration groups elsewhere in the world. The book also coversintegration in the Americas, the Pacific region, South-East Asia and Africa. The concluding chapter outlines the accumulated experiences of economic integration throughout the world and provides guidelines to assist in steering integration through the mist that obscures the future.Providing an excellent understanding of the complex issues involved with international economic integration, this volume will be extremely valuable for students of international economics, development and international business.
This text offers recommendations to deal with issues such as investment, environment, trade, labour standards, and accession to the WTO. It discusses: the Uruguay Round accords; the remaining barriers to trade; regional and multilateral initiatives; and the political support for negotiations.
In this volume, some of the world's foremost authorities analyze the many challenges and opportunities confronting the WTO, addressing issues such as national policies, labor standards, and the environment. Presuming no technical background in economics, this is a comprehensive introduction to the WTO's place in the global economy and will appeal to anyone interested in world trade. "[T]his book is a tour de force, with consistently fine papers by leading experts, and it is worthy of any bookshelf." —Joel P. Trachtman, American Journal of International Law "This latest conference volume from the National Bureau of Economic Research is likely to be the definitive reference work on the WTO for years to come. . . . Specialists and non-specialists alike will gain a great deal from a careful reading of this impressive volume." —John Ravenhill, Australian Journal of Political Science "For anyone who is interested in the further development of the rule system for the world economy, this book is a must." —Horst Siebert, Review of World Economics