Environmental aspects in free trade agreements in the Asia-Pacific region

The trade and environment interface has become a topic of growing importance. Until the early 1990s, the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organisation (WTO), were the major forums to address the relationship between trade and the environment. Significant progress in this area has not yet been made. Since the 1990s, environmental issues have been addressed by the North American Free Trade Agreement (NAFTA) and in recent times by trans-regional and bilateral free trade agreements (FTAs) such as the Trans-Pacific Strategic Economic Partnership Agreement (SEP), the U.S.–Singapore FTA (USSFTA), the Canada–Chile FTA or the New Zealand–Thailand Closer Economic Partnership Agreement (CEP). Not only questions on the effectiveness of FTAs in global and regional environmental governance arise but also on the various actors involved in these negotiations. The question here is whether the integration of environmental issues in FTAs is a top-down approach, leaving the negotiations and implementation of environment cooperation frameworks in the hands of governments, or whether environmental arrangements are the result of a multi-stakeholder dialogue, consequently committing governments, the private sector and civil society to the objective of making trade and environmental policies mutually supportive. This article seeks to address these questions by analysing environmental issues and stakeholder participation in the Asia-Pacific Economic Cooperation (APEC), the Trans-Pacific SEP and the New Zealand–Thailand CEP.

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Trade at the margin: Estimating the economic implications of preferential trade agreements

Preferential Trade Agreements (PTAs) have become the most prevalent form of international trade liberalization in recent decades, even though it remains far from clear what their effects on economies and their key units, firms, are. This paper evaluates the distributional consequences of trade liberalization within industries differentiating two distinct aspects in which trade liberalization could result in higher trade flows: the intensive vs. the extensive margin of trade. In particular, we analyze whether trade liberalization leads to increased trade flows because either firms trade more volume in products they have already traded before (intensive margin) or because they start to trade products they have not traded previously (extensive margin), or both. We test these arguments for the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR) and exporting firms based in Costa Rica for the time-period 2008–2014. The results of our study suggest that the effects of CAFTA-DR depend not only on whether we analyze the extensive versus the intensive margin of trade but also whether the product in question is homogenous or differentiated and whether the exporting firm under analysis is small or large. In particular, we find support for the theoretical expectation that firms exporting heterogeneous products, such as textiles, gain from trade agreements, such as CAFTA-DR, in that they can export more varieties of their products. Yet at the same time, they tend to lose at the intensive margin by a reduction in their trade volume while the opposite pattern occurs for firms exporting homogenous products.     

The impact of preferential trade agreements on governmental repression revisited

Previous research suggests that most treaties are ineffective in ensuring countries’ compliance with human rights standards. It has been argued, however, that preferential trade agreements (PTAs) including ‘hard’ human rights standards can withhold economic benefits and, thus, can have a real potential to substantially reduce human rights violations. The following article questions this as existent work on the effects of PTAs on human rights standards neglects a selection process underlying the implementation of these treaties. Countries being aware of the ‘shadow of the future’ already take into account what may happen at the succeeding enforcement stage when establishing a particular PTA. This implies that states agree on ‘hard’ human rights standards in PTAs only if they have a general propensity to abide by human rights in the first place. For testing the empirical implications of their argument, the authors collected new data on PTAs in 1976/77-2009, and employ genetic matching techniques. The results support the theoretical argument that PTAs are unlikely to affect human rights compliance when controlling for the outlined selection problem.     

Protecting labor rights in preferential trade agreements: The role of trade unions,left governments,and skilled labor

This paper investigates variation in the design of labor provisions in preferential trade agreements (PTAs) by focusing on the power of trade unions, the role of government partisanship, and the relative strength of skilled labor. We expect strong trade unions and left-leaning governments to be associated with more, and more far-reaching labor provisions in PTAs. We also expect the strength of skilled workers relative to the strength of unskilled workers to negatively correlate with the depth of labor provisions in PTAs. In addition, the effect of trade unions should be conditional on both the presence of left government and democracy. We test these hypotheses relying on an original dataset of labor provisions included in 483 PTAs signed between 1990 and 2016. This dataset covers 140 different labor provisions that relate to six overarching dimensions. The quantitative analysis finds support for the expectations concerning the influence of trade unions and the role of a country’s skill profile.     

Good for some,bad for others: US investors and non-trade issues in preferential trade agreements

Preferential trade agreements (PTAs) trigger investment through their commitment to a liberal market economy. Increasingly however, PTAs go far beyond liberalizing trade and investment flows. Especially controversial features included in most modern PTAs are environmental and labor standards. Do these standards affect business activity? If so, how do investors react to such non-trade issues in trade deals? The literature provides inconclusive findings about the impact of standards on foreign direct investment (FDI). Some contributors argue that strict standards decrease FDI, whilst others claim that environmental and labor protection increases productivity and, in consequence, inward investment. In all likelihood, the usage of aggregated FDI data, as is the case for most studies, causes confusion. I expect standards to influence investors’ decisions – but heterogeneously across sectors. Environmental and labor standards should reduce FDI in polluting and low-skilled labor endowed industries, but increase investment in environmentally clean and high-skilled labor abundant sectors. Based on an original dataset of environmental and social standards in trade agreements and at the sector-level disaggregated US-FDI data, I find robust support for my argument. The paper provides a more nuanced picture on the standards and investment nexus: Standards have no uniform effect on multinationals. Instead, they are good for some, but bad for other industries.     

Trade liberalization and the new regionalism in the Asia-Pacific: taking stock of recent events

In the aftermath of the regional financial crisis of 1997–98,many Asian economies have underscored the need consciously andaggressively to explore alternative liberalization paths or‘fallback positions’. This is where the ‘newregionalism’ or new regional trade agreements (RTAs) becomerelevant. This paper explores some of the primary rationalebehind, and main concerns regarding, the proliferation of bilateraland plurilateral trade pacts in the Asia-Pacific region. Italso considers the ‘dynamic time path’ of AsianRTAs. Do they facilitate or hinder multilateral trade liberalization?     

Social standards in trade agreements and free trade preferences: An empirical investigation

The Review of International Organizations - Free trade generates macroeconomic gains but also creates winners and losers. Historically, to reconcile this tension, governments compensated...     

Free trade agreements and vertical-specialisation in East Asia

Regional integration in East Asia has been described as ‘market-led’ integration driven by the activities of multinational corporations creating vertical specialisation. This paper investigates the effect of free trade agreements (FTAs) on vertical specialisation-based trade by employing a gravity estimation for a sample of nine East Asian countries plus the US. We find that FTAs promote international trade based on vertical specialisation and enhances deep integration between countries. The FTA effect on vertical specialisation-based trade increases with pre-agreement vertical linkage level, that is, the deeper the real integration between countries the larger the FTA impact. The results of this paper also suggest that deeper economic integrations, such as currency unions, will enhance trade based on vertical production by reducing the risk of exchange rate volatility.

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Intellectual property provisions and support for US trade agreements

Intellectual property rights are a key piece of the expanded trade agenda, and the United States has pushed hard to strengthen protections beyond WTO standards in its trade agreements. While agreement provisions governing intellectual property are commonly thought to be an important driver of corporate preferences over US trade policy, systematic empirical evidence for this proposition, especially in comparison to other determinants of trade policy, is generally lacking. To fill this void, this paper examines variation in reliance on intellectual property across US industries to explain attitudes and lobbying on US trade agreements. The effects of IP provisions on support for US trade agreements are politically substantial, though trade remains the primary determinant of preferences over trade agreements.     

The design of international trade agreements: Introducing a new dataset

Preferential trade agreements (PTAs) have been proliferating for the last twenty years. A large literature has studied various aspects of this phenomenon. Until recently, however, many large-N studies have paid only scant attention to variation across PTAs in terms of content and design. Our contribution to this literature is a new dataset on the design of trade agreements that is the most comprehensive in terms of both variables coded and agreements covered. We illustrate the dataset’s usefulness in re-visiting the questions if and to what extent PTAs impact trade flows. The analysis shows that on average PTAs increase trade flows, but that this effect is largely driven by deep agreements. In addition, we provide evidence that provisions that tackle behind-the-border regulation matter for trade flows. The dataset’s contribution is not limited to the PTA literature, however. Broader debates on topics such as institutional design and the legalization of international relations will also benefit from the novel data.     

Sub-regionalism,regionalism, trans-regionalism. Implications for economic integration and international trade policies

  This paper provides a summary of the various concerns surrounding regionalism. First, it provides a brief review of regionalism with a general explanation of what regionalism means, especially in terms of regional trade agreements. Second, it discusses the various benefits that allegedly arise due to regionalism. Third, in contrast, the disadvantages and problems associated with regionalism are discussed. In conclusion, it seeks to explain the implications of regionalism in terms of economic integration, international trade policies and the future of Asia–Europe relations. It suggests that regionalism is inexorably progressing, that in the end we will all tend to share in its benefits and that countries particularly in Asia and Europe should prepare themselves in light of these developments.     

亚欧会议与亚太地区组织的互动关系——兼论新地区主义的发展

亚欧会议与"10 3"和APEC都是在新地区主义浪潮推动下形成的区域合作进程和机制.由于它们均将东亚国家纳入了自身的合作框架,在覆盖的地域范围上相互交叉、在讨论的议题上有所重合、在运作机制上亦具有相似性,因而形成相互牵动、相互影响、相互补充、相互借鉴的复杂关系.如何协调亚欧会议与"10 3"和APEC之间的关系,推动它们之间实现良性互动,对于亚欧会议、"10 3"和APEC的进一步发展来说是一个需要解决的重要课题.作为三机制内具有影响力的成员,中国在推动亚欧会议与"10 3"和APEC的良性互动方面可以发挥重要的、建设性的作用.     

Relations between NGOs and trade unions: the case of Ukraine

This article describes the legal frameworks governing trade unions and NGOs in Ukraine, with the latter defined very much as organisations working for the benefit of their members and other citizens sharing the same interests rather than as philanthropic organisations whose mission is to assist others. Trade unions and NGOs are encouraged to collaborate in areas where their interests coincide, and the article describes two recent programmes in which such collaboration has been essential—one to promote more sport and physical activity among the Ukrainian population in order to address declining health statistics, and the other to address the needs of the growing number of people with disabilities in the country.     

Japan, China and East Asian regionalism: implications for the European Union

East Asia is becoming an increasingly coherent regional entity in political economic terms, and remains a region of enormous geo-strategic significance for the European Union. Europe’s links with China and Japan are especially important, and moreover these two countries are looking in various ways to exercise various forms of regional leadership in East Asia. This has critical implications for the EU’s relations with the East Asia region generally, and also for the wider international system. Similar and related impacts maybe construed from deepening East Asian regionalism, involving processes where both Japan and China play vitally important roles. The analysis presented here examines the both micro and macro level developments in East Asian regionalism, and issues relating to Japan, China and regional leadership. It concludes by discusses the implications of these matters for the European Union, and recommends that the EU should pay particularly close attention to emergent exercises of regional leadership in East Asia, most likely to be performed by Japan and/or China.

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Asia's odd men out: Australia, Japan, and the politics of regionalism

Australia and Japan have frequently had difficult relationshipswith their neighbours. This paper suggests that when seen intheir specific historical contexts, the fact that Australiaand Japan have become ‘Asia's odd men out’ is unsurprising.The central argument of this paper is that the consolidationand institutionalisation of regions is in large part a politicalexercise that reflects, and is informed by, discrete nationalconversations. Until and unless such national discourses alignwith wider transnational developments, regional processes areunlikely to prosper. An examination of Japan's and Australia'srespective attempts to engage with and define their region revealsjust how problematic this process can be. Received for publication April 4, 2006. Accepted for publication October 17, 2006.     

东亚地区网络安全合作机制:现状与挑战

在过去10年里,尽管东亚地区是互联网发展速度最为瞩目的地区之一,但面临的网络安全风险也日趋高涨。在地区框架下探讨网络安全合作有着现实的紧迫性和可行性。东亚各国围绕网络安全展开的交流对话显著增多,并在具体的技术层面和基础设施建设领域展开了有限的合作,这些交流与合作构成了东亚地区网络安全机制的基本架构。但现有的合作机制也面临合作层次较低、机制碎片化严重等显著缺陷。