Bilateral Graduation: The Impact of EPAs on LDC Trade Space

Abstract

As trade is prominently mainstreamed into development policies, the ongoing Economic Partnership Agreement (EPA) negotiations between the EU and the African, Carribbean and Pacific (ACP) countries are a turning point in Least Developed Countries (LDC) engagement with the international trading system. The process covers most UN-designated LDCs and is the first time they feature in the first row of international trade talks. We explore how the space LDCs occupy in the trade regime will be affected by EPAs. The analysis suggests that they move LDCs towards effective graduation from special and differential treatment, while innovating on policy tools to address underdevelopment.     

Decent work and indecent trade agendas: the European Union and ACP countries

The European Commission has promised to promote decent work in the African, Caribbean, and Pacific (ACP) countries through pro-poor direct investment and livelihood-creating trade deals. Aligning with the discourse of the International Labour Organisation, the European Commission seeks to achieve ‘fair globalisation’ in which economic growth is translated into decent jobs. Applying a moral economy perspective, however, the article argues that there is a disjuncture between the norms espoused under the Decent Work Agenda and the tangible implications of European interventions in ACP economies. Specifically, Economic Partnership Agreements will have deleterious consequences for the lives of many poorer producers and workers in ACP countries. The provision of Aid for Trade for decent work, moreover, may not deliver meaningful decent work opportunities in ACP countries. In this analysis, the article explores the emergent normativity-outcomes gap in this sphere of European Union external relations.     

Trading in development: norms and institutions in the making/unmaking of European Union–African,Caribbean and Pacific trade and development cooperation

This paper offers a contribution to recent debates on European Union (EU) external trade and development policy, with a specific focus on the African, Caribbean and Pacific (ACP) group of countries. The question asked is why the EU encountered such difficulties in the attempt to translate its normative preferences for freer trade and closer economic integration into a series of binding agreements? Drawing on both economic constructivist and historical institutionalist insights, it is argued that the case for reform initially rested on a strong convergence between institutions and ideas, enabling the EU to discursively present desired policy reforms as necessary to satisfy World Trade Organisation trade rules. However, in due course, the institutional dynamics behind the latter began to diverge from the EU's policy preferences and blunt its norm-based argument – thus creating the space for transnational coalitions to, first, question and, ultimately, undermine aspects the EU's trade and development prospectus for the ACP.     

War,reconstruction and dependence in Mozambique

It is often asserted that pressures for North African migration to Europe would be reduced if the European Union encouraged economic development on the southern shores of the Mediterranean. Such arguments prompt questions about the efficacy of past and present endeavours by Europe to support economic development in North Africa. This article argues that the European Union's efforts have ironically encouraged a form of economic development in its southern neighbours that abets, rather than discourages, migration. Deeper economic reform is necessary by the European Union itself-within the economic space that Europe dominates-if genuine progress is to be made on North African migration pressures.     

Public administration implications of the north american free trade agreement

The emerging North American trade bloc presents both challenges and opportunities for Mexico, Canada, and the United States. Free trade among disparate partners is a complex undertaking. The North American Free Trade Agreement (NAFTA) will bring important benefits to all three countries, but it will also raise many important issues. The sharp differences in wage rates, worker productivity, and education levels among the partners has fueled fears of job losses on both sides of the border. Disparity among NAFTA nations on labor practices, health and occupational safety laws and regulations are also sources of conflict. Effective dispute resolution mechanisms must exist for both the trade and non-trade issues. Practical guidance, in this regard, can come from the experience of the Canadian Free Trade Agreement (CFTA) and the European Economic Community (EEC; European Union since 1993). New political and administration mechanisms will be required to deal with each of these challenging issues.     

Differentiation within reciprocity: the European Union approach to preferential trade agreements

Recent statements on European Union (EU) trade policy towards developing countries (DCs) have stressed the need for differentiation between trading partners depending on their level of development. But what does this mean in practice? This article assesses the substance of EU trade policy towards a number of partners at different levels of development on the basis of the texts of recent preferential trade agreements (PTAs). It argues that EU PTA policy exhibits differentiation within a general shift towards reciprocity vis-à-vis DCs and that this needs to be assessed at the level of specific policy areas as much as partner country. It also suggests that the factors shaping EU policy vary from case to case with commercial competition and sector interests relatively more important in PTAs with emerging markets and high-income DCs and norms and institutional factors relatively more important in shaping those with least developed or low-income DCs.     

Regionalism and African agency: negotiating an Economic Partnership Agreement between the European Union and SADC-Minus

This article investigates the regional dynamics of African agency in the case of negotiations on an Economic Partnership Agreement (EPA) between the EU and a group of Southern African countries, known as SADC-Minus. I argue that these negotiations were shaped by a pattern of differentiated responses to the choice set on offer under the EPAs by SADC-Minus policy makers and by a series of strategic interactions and power plays between them. I offer two contributions to an emerging literature on the role of African agency in international politics. First, I argue for a clear separation between ontological claims about the structure–agency relationship and empirical questions about the preferences, strategies and influence of African actors. Second, I suggest that, in order to understand the regional dynamics of African agency, it is important to pay close attention to the diversity and contingency of African preferences and to the role of both power politics and rhetorical contestation in regional political processes.     

History,regionalism, and CARICOM trade: A gravity model analysis

Abstract

A gravity model is fitted to 17 annual cross sections, 1980–1996, of bilateral trade data (imports and exports) between CARICOM member states and selected trading partners. Specifically, the paper investigates the effects of regional integration, colonial legacies and linguistic ties on CARICOM bilateral trade flows between member states and between member states and North American and European Union countries. The empirical results indicate that history and regionalism have had significant and strong effects on CARICOM trade. Additionally, two traditional explanatory variables in gravity models, income per capita and population, have significant and positive effects on CARICOM trade while the distance between trading partners exerts the expected negative effect.     

The structure and evolution of trade in Central and Eastern Europe in the 1990s

This article analyses trade between some of the most advanced Central and Eastern European countries, using Spain as a benchmark, in order to find the determinants and characteristics of the trade patterns that have emerged in the 1990s. The empirical study includes the calculation of different indexes, namely Balassa's index of comparative advantage and the adjusted Grubel – Lloyd index. The analysis assesses whether these trade patterns can be explained by specialisation according to comparative advantage or by intra-industry trade. While trade theory often treats both as alternatives, I find that for the case of these countries they can complement each other.     

EU fta Negotiations with sadc and Mercosur: integration into the world economy or market access for EU firms?

The EU claims that its free trade agreements with regional organisations of developing countries can promote the respective regions' integration into the world economy. Taking as case studies EU negotiations with the Southern African Development Community and Mercosur, the paper argues that the EU and its partners have different conceptions of integration into the world economy. For the EU the latter simply means multilateral trade liberalisation under the wto, while, for its partners, it involves increasing industrial production and exports of manufactured products. If the latter notion is accepted, an fta with the EU should increase European foreign direct investment into the region or at least increase their trade surpluses, thus increasing the resources available for support of local firms. The paper argues that an fta with the EU will not be likely to produce these results; thus the fta will simply be an instrument to promote market access for EU firms.     

The Impact of Rural Votes in Foreign Policies: The FTA Policies under the DPJ Government in Japan

The recent trend of bilateral free trade agreements (FTAs) has pressured the governments of many countries to make such arrangements with their trade partners. Since its foundation in 1998, the Democratic Party of Japan (DPJ) has advocated free trade policies, partly because the party was an urban-based party. Thus, many expected that, when the DPJ assumed power in 2009, it would implement free trade policies as it had promised in the past. However, the DPJ government failed to deliver on its promise after spending three and a half years in office. It contrasts sharply with the Korean government under the leadership of Lee Myung-bak, which managed to conclude FTAs with its major trade partners, including the United States and the European Union. Both governments' free trade policies faced strong opposition from the agricultural industry, as farmers in Japan and Korea lacked international competitiveness. What explains the reasons why the Japanese government has been struggling to implement its free trade policies, while its Korean counterpart succeeded in signing a number of FTAs? Focusing primarily on the case of Japan and using the Korean case as reference, this study tries to provide an explanation for this puzzle by analyzing the impact of rural votes in the policy-making process.     

Facing the Giant: Southern perspectives on the European Union

The European Union portrays itself as a different global actor. This self-representation has triggered a debate around the EU as a global ‘normative power’, while providing momentum for innovative research into how other societies view and assess the global performance of the EU. For the first time this article presents the findings of a study conducted respectively in Brazil, India and South Africa. As leading nations of the ‘global South’, these three countries offer important insights into how the EU is perceived not only in emerging markets, but also in the so-called developing world at large. The findings reveal that the EU is an unknown entity to most citizens in these countries and is rarely covered by local media. Moreover, it is often criticised for inconsistencies and double standards by political elites and civil society, especially in the area of international trade, while being praised as a successful example of regional integration.     

Deeper concessions and rising barriers to entry: New regionalism for Turkey and Mexico

New regionalism is redefining core and semi-periphery relations in the world economy. Focusing on Turkey and Mexico and their respective regional agreements, NAFTA and the Customs Union with the European Union, this article claims that barriers to entry into regional blocs increased considerably during the 1990s. While systemic international relations theories explain why both Mexico and Turkey made significant concessions in order to enter into regional agreements, they cannot fully account for the timing and terms of bargaining during regional negotiations. A simultaneous look at both the domestic and international bargaining processes shows that it was the domestic pressures in the United States and the European Union (and the relative absence of such pressures in Mexico and Turkey) that enhanced the terms of bargaining of the existing members against these aspiring countries. A synthetic approach that combines international pressures with domestic dynamics explains why new regionalism in the global economy is becoming a new challenge for such countries.     

The moral economy of EU relations with North African states: DCFTAs under the European Neighbourhood Policy

The EU has loudly voiced its intention to facilitate poverty reduction and democratisation in North Africa. In particular, it seeks to conclude Deep and Comprehensive Free Trade Agreements (DCFTAs) with Tunisia, Morocco and Egypt. These are seen as a vital response to the Arab Spring – integrating North African countries into the globalised economy. Applying a moral economy perspective, this article argues, however, that, while ‘Normative Power Europe’ seeks to build more tranquil societies in the region, its trade policies nevertheless threaten to exacerbate poverty and social unrest. The prospect of de-industrialisation in the wake of FTAs will do much to entrench economic asymmetries between the European metropole and its neighbours.     

The fragility of an independent judiciary: Lessons from Hungary and Poland–and the European Union

When the European Union was founded, it was assumed that all Member States admitted as consolidated democracies would maintain their constitutional commitments. In recent years, Hungary and Poland have challenged this premise as elected autocratic governments in those countries have captured independent institutions and threatened long-term democracy. The judiciaries of these countries have been hard hit. In this paper, we trace what has happened to the judiciaries in Hungary and Poland, showing how first the constitutional courts and then the ordinary judiciary have been brought under the control of political forces so that there is no longer a separation of law and politics. We also explore why the European Union has so far not been able to stop this process. In the end, the European judiciary, particularly the Court of Justice, is attempting a rescue of national judiciaries, but the results are so far unclear.     

Power in Global Trade Governance: Is the EU a Unitary Actor,a Tool for Dominance,or a Site of Contestation? GATS and the TTIP Negotiations

The European Union (EU) plays multiple roles within global trade governance as a unitary actor with particular interests to promote, a tool for dominance by powerful interests, and a site of contestation facilitating civil society mobilization. Identifying these roles is key to analyzing the role of the EU particularly in times of crisis in global trade governance where new forms of politics are most likely to emerge. This is investigated through considering two cases of politically sensitive trade negotiation in which the EU played, and continues to play, an active role: the GATS 2000 negotiations and the EU-US TTIP.     

中国周边形势新变化与周边命运共同体构建

2017年以来,中国周边安全和经济形势发生重大变化。在安全上,美国以推动"印太"战略、强化美日和美韩同盟、借议题拉拢东盟等手段将战略布局深度集中到中国的周边地区;法国、英国、德国、欧盟也紧随其后,开始深度介入"印太"地区的经济合作、安全事务和互联互通进程。在经济上,全球化已进入"慢速"阶段且越来越以区域化的方式展开;而机器人、3D打印技术和可再生能源的发展和运用将继续推动区域化进程,周边国家与中国的经济联系对双方来说都更为重要。无论是在安全上还是在经济上,周边地区对中国发展的重要性都在迅速上升。中国应更加重视周边外交在总体外交布局中的地位,要总结历史和当代中国营造良好周边环境的经验;争取处理好中美日、中美韩、中日韩、中俄印等一些大三角关系;将周边地区打造成为中国构建新发展格局的节点和高质量推动"一带一路"建设的引领示范地区;积极提供地区公共产品,推动构建周边命运共同体。     

Military twists and turns in world politics: downsides or dividends for UN peace operations?

Russia’s challenge to the post-cold war order, and the rise of Islamic State have resulted in a call for increased military spending among NATO members. Despite the increased demand for UN peace operations, any expansion is unlikely to benefit the world organisation. Instead we see an increasing reliance upon regional organisations like the African Union, European Union and NATO, in particular, for robust peace operations. An analysis of Western states (France, Germany and the USA) suggests that future investments in weaponry, technology and staff will primarily benefit NATO and the EU, but not the United Nations.     

The European community's system of generalized tariff preferences: A critique

In mid‐1971 the European Community introduced a system of generalized tariff preferences for less developed countries, hailing its scheme as a ‘generous response’ to the needs of those countries. This paper explores tentatively how generous the European tariff preference scheme is, in terms of its likely stimulus to exports from and investment in the less developed countries. It also assesses the impact of the scheme on the assumption of United Kingdom membership in the Community. It concludes that whether Britain is in or out, the European scheme, based as it is on rather restrictive tariff quotas keyed to past trade data, will offer little help in furthering the economic objectives of developing countries.