The WTO in crisis: lessons learned from the Doha negotiations on the environment

Even before the Doha Round of international trade talks in the World Trade Organisation (WTO) had been suspended in July 2006, there was little sign of progress in the negotiations on the relationship between WTO rules and multilateral environmental agreements (MEAs). If the Round is resumed, this and many other important issues on the WTO agenda will have to take a back seat while the big ticket items—agriculture and market access—are resolved. Meanwhile, governments acting outside the WTO will continue to agree to new MEA commitments that relate to trade policy without a clear understanding of how the design and implementation of those commitments is affected by WTO rules. This article examines some of the options for governments to clarify the relationship between WTO rules and ME As, both inside and outside the WTO. It sets out the nature and experience of the relationship, before examining ways in which governments in the WTO and in the UN system could work towards better global governance of trade and sustainable development.     

Bringing Workers’ Rights Back In? Propositions towards a Labour–Trade Linkage for the Global South

The idea of forging a linkage between global trade and labour standards has a long history and has been the subject of fierce debate. In a global political economy that incites ‘competition for jobs’, the idea cannot escape controversy. Crucially, it has failed to win significant support from trade unionists in the global South. Drawing on viewpoints voiced by workers’ rights activists in South Africa and Brazil, this article presents four propositions on the features and functions that a labour–trade linkage would have to possess if it is to serve workers’ interests, and explores whether and how these may be accommodated by the ILO and WTO regimes. It is argued that a linkage requiring a new single WTO undertaking is out of the question; a linkage would only make sense if it superimposes ILO rule onto the WTO, not the opposite; a linkage should be premised on positive trade measures; and, finally, it should serve the interests of presently unprotected and unorganized workers. Overall, the main challenge of such a linkage would be to achieve the necessary reform within the ILO.     

Australia and the European Union in the World Trade Organisation: partners or adversaries?

Shared interests between Australia and the European Union (EU) in multilateral trade negotiations are increasing. However, the relationship in the WTO continues to be defined by conflicts over agriculture. This article examines the case for closer Australia-EU co-operation on shared interests in WTO negotiations while continuing to press for more rapid reform of EU agriculture policies. It traces the major changes in the interface between Australia and the EU in the WTO, including the re-structuring of the Australian economy over the past two decades and the more recent efforts by the EU to modify the trade impact of the Common Agriculture Policy (CAP) on world agriculture trade. The article concludes that closer co-operation between Australia and the EU in the WTO on shared interests would enhance Australia's influence in the multilateral trade system.     

Australian trade policy in an age of globalisation

Arguably, the world trading system has entered a period of greater change and uncertainty in the past two years than at any time since the end of the Cold War. At the same time, Australia faces a range of internal and external challenges to its trade policy, while having lost many of the old 'certainties' guiding its trade agenda. This article identifies four major challenges confronting Australian trade policy now and into the future: the EU agenda to inject self-serving 'governance' mechanisms into the WTO; rises in the demands and influence of developing countries within the WTO; the new trend towards bilateral free trade areas; and increasing opposition to globalisation by groups within society. It assesses the capacity of Australia's trade bureaucracy to manage these issues, warning against expecting too much of the trade policy agenda, particularly in relation to the role it plays within domestic politics in Australia.     

A trade balance: litigation and negotiation in the World Trade Organization's dispute settlement system

The establishment of the World Trade Organization (WTO) has been widely accepted as representing the legalisation of world trading rules. However, it is important to reflect on the limits of this legalisation thesis in terms of the interface between international and domestic policy processes. By locating trading disputes in a political analysis of policy implementation, it is argued that it is difficult to establish conceptually how the WTO dispute settlement system could have authority separate from and above the conventional international politics of trade policy relations. Instead, the article argues that case outcomes should be expected to be largely the product of domestic political institutions and policy processes, and how these intersect with developments in the WTO dispute settlement system. Brief studies of the Australian government's dispute settlement strategy and two high-profile WTO disputes—the US upland cotton and European Union sugar cases—serve to suggest that the authority of international trade law is not as significant as assumed by the legalisation thesis. Rather, domestic politics and institutions have an important impact on the outcome of trade disputes.     

Seizing the Future: The South, Sustainable Development and International Trade

The failure at Seattle to agree the mandate for a new round of trade negotiations represents a dual crisis, not only for the trade community, but also for those supporting a shift to sustainable development. At the root of the crisis lies the North-South faultline, with an embedded sense of inequity keeping developing countries forever wary of the industrialized countries, not least on linkages between trade and the environment. But Seattle also showed that the South's current non-strategy towards trade and environment-opposing any formal linkage within the WTO, for example-is flawed. As a result, the South is now seen as the global scapegoat for inaction on trade and environment, and has shut itself out of opportunities to shape the direction of the debate. Furthermore, trade and environmental factors are being progressively linked in the marketplace-not because of the WTO, but in spite of it. The challenge for the South is to take a more proactive approach, generating a positive agenda for change based on issues of sustainable livelihoods, environmental justice and sustainable development more broadly. One starting point is to test current policy positions against the alternative visions of the future-for example, through scenario planning-and to develop a robust 'no regrets' programme for engagement. The South has the most to gain from a world structured around the norms of sustainable development, and, as a result, it has the primary responsibility for reorienting the goals of trade away from the limited agenda of 'free trade', towards the more inclusive programme of 'sustainable trade'. Whether this reorientation takes place, and whether the South takes a hand in shaping this process, will be one of the central questions for the years ahead.     

Salmon and fruit salad: Australia's response to world trade organisation quarantine disputes

The introduction of new quarantine disciplines under World Trade Organisation (WTO) agreements has given rise to tensions within the Australian federation over quarantine measures. This paper examines WTO disciplines and rules as they affect trade in agriculture and food products. It highlights the significance of risk assessment in the policy process relating to quarantine, identifies key issues arising from the WTO Australia—Salmon case and outlines the cases currently tabled at the WTO for settlement with Australia named as respondent. The paper concludes by identifying the lessons from the salmon case in terms of intergovernmental interaction and policy learning within the Australian federation.     

Cultural policy‐making in the free trade era: an evaluation of the impact of current world trade organisation negotiations on audio‐visual industries

The delicate compromise concerning the regulation of world trade in audio‐visual materials is about to be upset. Ongoing negotiations under the World Trade Organisation's General Agreement on Trade in Services (GATS) are seeking to establish, in the words of US negotiators, “clear, dependable and predictable trade rules” for transnational media exchanges. This article evaluates the impact of the GATS on audio‐visual industries and considers the extent to which cultural industries fit into the framework of multilateral trade talks. Based on interviews with trade officials in the WTO and the UK Department of Trade and Industry, the article concludes that liberalising and deregulatory policy shifts are more likely to emanate from corporate and state environments than from the slow and detailed negotiations in WTO headquarters in Geneva where “defensive” interests appear to be dominating over “offensive” ones.     

World Trade and Workers' Rights: In Search of an Internationalist Position

Trade unions and NGOs have been divided sharply over the issue of a workers' rights clause in WTO trade agreements, and have failed to reach a consensus despite heated debate. This appears to be due to elements of protectionism and nationalism in positions on both sides. Arguments against a workers' rights clause can be classified into those opposing (1) globalisation, (2) the WTO, (3) any linkage between workers' rights and trade, and (4) the proposed mechanisms for enforcement. The first three types of objections can be traced to nationalistic considerations, which subordinate the interests of workers to a "national interest" that represents various business groups. The fourth type, however, includes valid criticisms and reveals elements of protectionism in the current proposals for a workers' rights clause. If the proposal is revised to eliminate these elements, it should be possible to arrive at a consensus among progressive labour unions and NGOs. This would be an important step towards an internationalist strategy to fight for minimum labour rights worldwide.     

Building synergies between WTO and UNESCO: the case for data-driven policy coordination

The different legal worldviews of WTO and UNESCO on trade and culture vividly illustrate the formidable challenges we face nowadays to deliver legal and policy coherence in global governance. Bridging the trade and culture policy divide in this area requires stronger inter-agency dialog and cooperation, starting with joint initiatives for improved policy-oriented statistics.     

Australia’s trade diplomacy and the Trans-Pacific Partnership: ‘you’ve got to row your own boat’

ABSTRACT

As part of its economic diplomacy, Australia has directed intense effort into both bilateral and plurilateral trade negotiations such as the Trans-Pacific Partnership. According to then Minister for Trade and Investment Andrew Robb, with no major multilateral trade deal in decades, you have to ‘row your own boat’ or risk missing out. With the fundamentals of trade and the nature of trade negotiations changing, trade liberalisation has become an increasingly sophisticated and difficult negotiating area. A case study of the controversial TPP shows the tensions for a middle power navigating this space. The benefits of the TPP are contested and the government faces criticism of the adverse impacts of the agreement, especially investor-state dispute settlement clauses, impact on human rights and suspicion that the TPP is motivated by geopolitical drivers. In order not to lose more than it gains in moving away from the multilateral trade system, Australia must ensure that trade agreements are consistent with WTO rules and have open and fair accession regimes as a basis for signing. Finally, there is the need for higher levels of transparency and democratic accountability than has historically applied. A new white paper is necessary to make the case for trade liberalisation.     

加入世界贸易组织对中国农业发展的影响及其对策

新一轮中国加入世界贸易组织多边谈判的开始,标志着中国入世进程的加快。中国作为一个有8亿多农民的农业大国,入世后农业的发展将首当其冲地受到影响。本文研究了加入世贸组织对中国农业产生的影响及应采取的措施。认为:中国加入世贸组织将有利于优化农产品出口的国际市场,有利于国际贸易争端的有效解决,有利于促进中国农村经济体制的改革;入世后随着进口关税的降低和我国农村经济体制存在的固有矛盾,国内农产品市场将遭受前所未有的压力,国内粮食生产将受到一定的冲击,且一定时期内政府用于进口农产品的外汇将显著增加;国际市场对我国不同种类农产品的生产及贸易产生的影响具有显著的差异性;加入WTO对中国农业发展的影响是机遇和挑战并存,有必要采取积极可行的措施促进中国农业的稳定发展以保证国家粮食的安全。     

Using negotiation to promote legitimacy: an assessment of proposals for reforming the WTO

How can negotiations be conducted to promote the legitimacy of international institutions such as the World Trade Organization (WTO)? Can negotiation procedures be designed so as to strengthen the WTO as an institution and the agreements it concludes? One reason for which the legitimacy of the organization is being questioned is its decision‐making—especially negotiation—procedures. These have contributed significantly to recent setbacks in WTO talks. Yet proposals for procedural reform have not been subject to much discussion or review, in particular with no regard to content which may boost legitimacy. Justice and other values associated with legitimacy have generally not been addressed by trade experts, and conceptual tools for identifying what practical form their inclusion could take are lacking. This article reviews a variety of proposals, formal and informal, for reforming the WTO's negotiation procedures. It develops an approach to procedural justice which is used to identify the justice content in these proposals, based on four main principles. Drawing on this analysis, the article concludes by highlighting promising elements of reform. In so doing, it brings research literature on justice and negotiation to bear on current debates over the legitimacy deficit in international institutions, using the WTO as a significant case. More practically, the article helps to identify what more legitimate negotiation procedures may mean and require, and how their justice content may be assessed and increased.     

经济全球化背景下的中国对外贸易

经济全球化是当今世界经济发展最显著的特征,改革开放使中国及时赶上经济全球化的高潮,对外贸易则是中国与世界经济交流的主要形式。本文在概述经济全球化的基础上,回顾了改革开放以来中国对外贸易的发展,表现出对外贸易额迅猛扩张、外贸结构不断优化、不断深化的外贸体制改革以及波动之中的贸易条件等特征。展示了中国对外贸易空间分布不均衡的格局,无论国内对外贸易的分布还是主要贸易伙伴的构成都体现出这一特点,说明中国的对外开放仍然处在较低的水平,并分析了加入世贸组织对中国的经贸发展的影响。     

加入WTO前我国工业发展战略的演变

加入WTO前,我国工业发展战略的演变,基本上是围绕着对外贸易战略、利用外资战略和产业结构战略的转变面展开的。我国的对外贸易战略具有由改革前的进口替代战略向出口导向战略转变的趋势,总体上仍处于有保护的出口促进战略的阶段;外资战略由限制外资战略向鼓励外资战略转变;而我国产业结构战略的转变,则是与工业化过程的演进和经济体制改革的推进相伴随的,大体上经历了1979-1988年扭转片面重工业化倾向、大力发展以轻工业为主的加工制造业的阶段,1989-1991年调整工业内部结构、控制一般加工工业发展、加强基础工业和基础设施的阶段,1992-2001年加快技术密集型产业发展、推动工业结构由高加工度化向技术集约化转变的阶段。这三种战略的转变不是孤立进行的,而是形成了一个相互影响、相互促进的有机整体,构成了我国扩大开放进程中工业发展战略演变的一条主线。     

New powers in the club: the challenges of global trade governance

No good deed goes unpunished: the WTO's timely response to accommodate the new powers—Brazil, India and China—at the heart of its decision‐making has produced new inefficiencies, has heightened its proclivity to deadlock, and has exacerbated disengagement and disillusionment among all its stakeholders. Particularly in the context of a major economic crisis, a reliable international institution is necessary to ensure the continued provision of freer trade—well‐recognized as the route to recovery. With the WTO's recent record to provide these necessary public goods under doubt, where do the solutions lie? This article discusses the changing role of the new powers in the WTO, and further analyses the opportunities and challenges that these developments generate. The concluding section examines possible routes to reform. While very little can, or indeed should, be done to alter the balance of power itself, it is argued that appropriate institutional reform can help the multilateral trading system retain the advances it has made on grounds of fairness and further address the concerns of efficiency that are central to the crisis that it faces today.     

Japan's FTA politics and the problem of agricultural trade liberalisation

Japan's willingness to negotiate Free Trade Agreements (FTAs) is not matched by a readiness to liberalise agricultural trade. Japan has used a variety of mechanisms to limit the extent of agricultural concessions in FTAs. Public choice theory predicts that FTAs are a more effective instrument for opening Japan's agricultural market than the WTO because they reshape the domestic politics of Japanese trade in ways that are conducive to further market opening. FTAs do this by altering the domestic politics of trade policymaking on the demand side as well as some aspects of the supply side. On the demand side, business groups mobilise even more strongly to demand an end to agricultural protection, whilst on the supply side, the value of FTAs for broader state interests are recognised by politician-leaders. Various structural obstacles in the policymaking process, however, prevent the altered demand and supply-side dynamics from necessarily delivering free trade outcomes.     

Democracy without Certainty: Derek Malone-France and the Virtue of Anxiety

Abstract

Globalization rocks the world, perhaps even rules it. Whatever the perception, the impact it has on the world's population means it cannot be ignored. A recent development has been the introduction of religious terminology into the debate about the phenomenon. Some commentators have described globalization itself as a ‘new religion’; others refer to new gods, and to the concepts of redemption, salvation and sacrifice. This paper picks up the religious theme by analyzing and critiquing globalization in terms analogous to Christianity. It then assesses the November 2001 meeting of the World Trade Organization (WTO) in Doha, and the International Monetary Fund (IMF) and the World Bank (WB) gathering in Ottawa—which were taking place at the time of writing and were the first such meetings after the terrorist attacks in the USA on 11 September 2001. A final section considers 9/11 and how the idea of countering terror with trade might work in practice.     

The UNESCO Convention on the Diversity of Cultural Expressions as a coordination framework to promote regulatory coherence in the creative economy

The present article aims to inquire about business convergence in creative industries from the perspective of cultural diversity. It is based on the premise that the recognition of the creative and innovative component of the so-called ‘creative industries’ or the ‘creative economy’ confirms the need for non-economic factors and particularly cultural concerns to be taken into account in regulatory efforts addressing those industries. It examines the way new technologies and business convergence may affect the ‘trade and culture debate’ vis-à-vis the World Trade Organization (WTO), and how the 2005 UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions (CDCE) may respond in a relevant manner to challenges brought therefrom. Despite its weakly binding language, the CDCE contains principles, objectives and rules that set a comprehensive framework for policy ‘related to the protection and promotion of the diversity of cultural expressions’ at the national, regional and international levels. A fundamental piece in such an approach is the explicit integration of cultural concerns into the concept of sustainable development. This article argues that the material and economic perspective adopted in the CDCE, based on the production and consumption of cultural goods and services, remains relevant and pertinent in the creative economy, despite business convergence. By prioritizing policy and regulatory coordination, it maintains that the main elements enshrined in the CDCE should be employed to contribute to greater coherence in view of the objective of promoting cultural diversity, including vis-à-vis the WTO and other international organizations, and puts forward potential paths for such coordination.     

Russian Accession to the WTO: An Assessment

A senior World Bank economist presents a study focusing on issues controlling Russia's accession to the WTO in 2007. The paper discusses the principal reform commitments that Russia has made in an effort to become a member of the organization and addresses the question of whether the country faces excessive demands due to political considerations. While exploring such issues as potential relations with foreign exporters and investors, the author summarizes the relevant parts of his recent joint study of Russian import tariffs that casts a new light on a complex aspect of international trade. Among other problems relating to Russia's entry, he discusses in some detail branch banking and the tradedistorting subsidies in agriculture. Journal of Economic Literature, Classification Numbers: F13, F40, O19. 3 tables, 26 references.