Iran's Free Trade Zones: Back Doors to the International Economy?

Since the late 1980s, Iran has pursued a policy of attracting foreign investment and fostering regional trade by granting favored status to the so-called “Free Trade-Industrial Zones” (FTZs) and “Special Economic Zones” (SEZs). To date six FTZs and sixteen SEZs have been set up throughout Iran. The FTZs are strategically positioned for their potential international links and have their eyes on markets beyond Iran, and the SEZs for their value in serving main industries and for improving the country's distribution system and supply network. This paper examines the experience of these zones in Iran in the context of Iran's contradictory and ambivalent approach to international economic integration in general. It is shown that liberal policies pursued in the free zones have been in marked contrast to the approach in the mainland, which has been generally inward-looking in much of the post-revolutionary period. We examine first the rise of free zones as a global phenomenon followed by an overview of Iran's zones and their characteristics. It is argued that serving mainly as “back doors” to the international economy, Iran's free zones have stalled mainly because their promotion has been decoupled from, if not at odds with, official attitudes to the international economy at large. As a result, the zones' ability to attract investment has been limited by both adverse external perceptions of Iran as an investment destination and internal complexities discouraging such investment.     

Territorial (In) Coherence: Labour and Special Economic Zones in Laos's Border Manufacturing

This article engages literature on special economic zones and territory in global development. I suggest a focus on labour's spatial class composition as constitutive of territorial coherence provides insights into how the Savan‐Seno Special Economic Zone in Lao PDR operates as an economic border territory bridging Laos to the regional and global economies. The distanciated global connections which special economic zones aim to create are predicated on zones gaining internal coherence for capital accumulation. I suggest zones’ internal coherence depends on zone firms reworking the local class composition of labour, itself constituted by workers’ spatial practices. In the Savan‐Seno zone this occurred through immobilising a mobile labour force and taking advantage of its continuing embeddedness within a subsistence rice‐producing village economy. The argument aims to illustrate how zones producing for global markets act as territories of complex spatiality which span and connect multiple spaces of production and workers’ social reproduction.     

(Re)constructing borders through the governance of tourism and trade in Ladakh,India

This paper analyses how everyday life, the state and nationhood are regulated and organised in a conflict-affected borderland space through economic activities. It focuses on two elements that are often overlooked when scholars discuss spatial governmentality: tourism and trade. Both are commonly declared to be elements of peace, peacebuilding and cosmopolitism. However, the spatial governance of tourism and trade can also profoundly shape how national belonging and the limits of territory are perceived and experienced by borderland populations and visitors. These dynamics can be acute in conflict-affected border zones, where state sovereignty may be under existential or territorial threat. This paper exposes such dynamics in the Indian conflict borderland area of Ladakh, a part of Jammu and Kashmir State until October 2019. Building on scholarship that has analysed cultural and social dynamics of “bordering” in the region, this paper argues that it is possible to read (socio-)economic boundary-making in Ladakh through the state's influence in the organisation and experience of trade and tourism for Ladakhis and visitors. The paper highlights how their spatial organisation, in part, underwrites difference and separation, and aids in framing the contested territory as ‘Indian’.     

Australia's flawed approach to trade negotiations: and where do we sign?

Economists have warned for many years that preferential trade agreements (PTAs) will not necessarily increase economic welfare in Australia given the relatively small size of the economy and the country’s lack of negotiating coin. The Productivity Commission cautioned in its major report on PTAs that there seemed to be a mindset of ‘agreements for agreement’s sake’, in part because of fears of missing out on a bandwagon that has attracted Australia’s major trading partners. Political and security considerations have played an important role in shaping Australia’s approach to PTAs. When politics trumps economics in negotiations of PTAs there is a risk of a rush to premature agreement that produces sub-optimal outcomes, that undermines broader plurilateral and global negotiations, and that introduces new and undesirable distortions in trade and public policies. Various theoretical approaches to trade policymaking provide insights into why Australian governments have been willing to conclude these sub-optimal deals.     

Globalization and Brazilian biosafety: the politics of scale over biotechnology governance

Monsanto’s request to commercialize its genetically-modified (GM) herbicide-resistant soybean technology in Brazil sparked heated debate and protest. This paper explores the conflict and illustrates how biosafety politics and policy outcomes are highly contested and situated, rather than controlled by external forces within the ever-expanding global economy. This paper argues that GM crops are not inherently artifacts of economic globalization and trade liberalization. What makes GM crops ‘global’ and part of a new iterative and uneven globalization process are the new and unanticipated sites of contradiction and contestation and the multi-scaled conflict over biotechnology governance. Political strategies taken by the state government in Rio Grande do Sul, Brazilian consumer protection activists, and Greenpeace exploit the new ‘nature’ of GM crops as a means to expand the debate, change the rules governing the genetic commons, and consequently, rescale biotechnology governance.     

How many Gs are there in ‘global governance’ after the crisis? The perspectives of the ‘marginal majority’ of the world's states

The G20 summit has recently emerged as the dominant agency of global governance. It claims that its economic weight and broad membership give it a high degree of legitimacy and influence over the management of the global economy and financial system. But the G20 still excludes from membership some 150 other countries, all of which have interests at stake within the contours of contemporary global governance. In the financial arena these excluded countries contributed significantly to the alternative agenda for dealing with the global financial crisis proposed by the United Nations conference that met in June 2009. In the trade arena they engaged extensively in a variety of coalitions within the World Trade Organization during the so‐called Doha Round and played a part in preventing a deal emerging that was unsatisfactory from their perspective. Questions are raised about the legitimacy of the G20 by the active presence of so many other country voices outside its remit and it can be expected that the excluded ‘G150’ will increasingly explore different ways to engage with the members of the G20 over the next few years.     

“You Cannot Trade What Is Not Yours”: Indigenous Governance and the NAFTA Negotiations

ABSTRACT

Contemporary International Relations scholars and practitioners generally recognize that substate governments affect the state’s international affairs; however, there is less acceptance of Indigenous governments as global actors that meaningfully impact the state. After all, the expectation would be that central governments, with considerably more resources and power, would be unlikely to face a challenge from an Indigenous government. However, Indigenous governments are negotiating new relationships with foreign and domestic governments, forming economic development corporations, hiring private firms to raise capital, funding trade missions, and even opening offices in key international locales such as Beijing to engage in trade promotion and push investment opportunities in projects such as resource extraction. Applying paradiplomacy theory, which argues that International Relations cannot be properly explained absent the global affairs of substate governments, this article analyzes the effect of Indigenous peoples and governance in the Canada–US trade relationship. It specifically considers how Indigenous engagement in the global economy affects the bilateral trade regime, foreign direct investment, and cross-border trade. The driver for these analysis centers on demands for the inclusion of a so-called “Indigenous chapter” in the North American Free Trade Agreement renegotiations in 2017 and 2018.     

China and the “culture and trade” debate: a holistic approach

ABSTRACT

Over the past century, the ‘culture and trade’ debate has constantly evolved, particularly in the wake of rapid and still accelerating technological and scientific advances. These changes, manifest in an increasing convergence of many new technologies and industries, meant that the strict separation of culture from trade by means, for instance, of general or special exceptions in international trade agreements, such as the 1947 General Agreement on Tariffs and Trade (GATT) or the 1988 Canada–United States Free Trade Agreement (CUSFTA), can no longer be sustained. It means that in light of the emergence of oxymoronic concepts like ‘the cultural and creative industries’, the debate can no longer be framed along binary modes of thinking that oppose the liberalization of international trade and the protection and promotion of the diversity of cultures. Instead a more holistic approach seems to be needed, which appears to coincide with the approach taken by the People’s Republic of China (PRC), which joined the WTO in 2001. The present paper examines the holistic approach by the PRC, which seeks to combine rather than separate culture and trade in its domestic, regional and global law and policymaking.     

Spatializing transnational history: European spaces and territories

This article introduces the dossier ‘Spatializing Transnational History: European spaces and territories’. It examines the intersections between transnational history and the so-called ‘spatial turn’ in social sciences, and points at future directions in historical research. It reviews two main different methodological approaches to the problem of space in transnational, comparative and global history and examines recent contributions on the history of territory. Finally, it introduces the contributions to this dossier, which approach the history of modern Europe from a number of transnational and spatial perspectives. The dossier argues that incorporating a combination of spatial approaches, ranging from the examination of transnational spaces, to the interplay between different scales of analysis, and to the historicization of territoriality, into the practice of transnational, comparative and global history may contribute to a deeper, wider and more complex understanding of ‘Europe’.     

Trade's Value: Relational Transactions in the Papua New Guinea Betel Nut Trade

The betel nut trade in Papua New Guinea is big business. Betel nut, a mild indigenous stimulant, is considered the ‘green gold of the grassroots’. It is the country's most significant domestic cash crop and, in terms of rural incomes, a rival to the dominant export cash crops. Its sale is an important livelihood strategy in both rural and urban areas, the most visible manifestation of a flourishing informal economy. In betel nut marketplaces money ‘flows’ and ‘overflows’, traders wield large wads of cash, and vast sums change hands. Whether seeking their fortunes or only tinned fish, people trade betel nut first and foremost to make money, but such interests in trade do not automatically displace other forms of value. This paper is concerned with marketplaces and trade in contemporary Papua New Guinea and what is conveyed in those transactions between buyer and seller. Against the often impersonal and utilitarian rendering of trade, this paper seeks to foreground the sociability of trade and the multiple forms of value that may be simultaneously attached to monetised market transactions. This is not to conceal the discrete, unenduring, and competitive dynamics of trade, which prominently feature in many betel nut transactions, but instead to examine an important dynamic often overlooked. Market transactions, far from being asocial, or even socially destructive, have the capacity to generate and sustain diverse social relations including those of kinship and friendship.     

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.     

The G8 in a changing global economic order

The G8 has rather crept up on our consciousness as an agency of global governance. It was brought into being in 1975 in order to give western leadership to the global political economy at a time of uncertainty and drew Russia into its activities in order to demonstrate and symbolize the triumph of western capitalist liberal democracy over its rival Soviet system. In that sense the G8 constitutes the club of the winners of late twentieth century history. But it has long been beset by problems of legitimacy and efficiency. Some of the leaders of the current G8 states also recognize that global politics has moved on a long way since the settlements of 1945 and 1989 and increasingly acknowledge the need to address that changing reality. They recognize that some other powerful countries have grown up and that it is now in the interests of the dominant countries to accommodate a limited number of these new powers within the structure and norms of the contemporary governance of globalization. In this spirit the G8 has lately sought to incorporate Brazil, China, India, Mexico and South Africa into its affairs, dealing with them as ‘outreach’ partners within a process that has been dubbed the ‘G8 + 5’. For their part, these early twenty‐iirst‐century winners will have to show that they are willing to work within the framework of western leadership. That is what the ‘G8 + 5’ process is testing out. Only when, and if, these tests are passed will the formation of a G13 become a politically realistic possibility.     

Deferring to Vichy in the Western Hemisphere: The St Pierre and Miquelon Affair of 1941

This article argues that commentators such as Will Hutton might be somewhat premature in their forecast of an imminent collapse of the Chinese economy as a principal mechanism of general global economic downturn. Long-term predictions surely require some long-term data from the real historical past? The author argues more specifically that in recent history the turning points in the Chinese political economy tend to come from technological and related problems within that economy itself, rather than through political pressures arising from outside China. It follows that Chinese political transition awaits further economic development and its association with the emergence of a new phase of technological progress. This approach differs from that of the ‘adaptive governance’ analysts, who argue that evolution of political regimes may be traced through linkages between contemporary political processes and the ‘revolutionary precedents’ of the 1920s. Instead the author considers a continuous history of technological exigencies into the present time as the effective stimulants of regime changes.     

Trade agreements and the myth of policy constraint in Australia

In this paper, I challenge the conventional view that trade agreements act as a major constraint on Australia’s industry policy options. Through a comparison with South Korea – a country with similar trade obligations to Australia – I find that the Australian government retains significant room to move in the industry policy sphere. However, Australian policy-makers appear far less willing than their foreign counterparts to use that space. To explain Australia’s comparative industry policy in-activism, I move beyond broad-brush explanations centred on ‘liberal ideology’ to explore the ideational, institutional and structural obstacles to the pursuit of a more proactive industry policy approach on the part of Australian policy-makers.     

Reading fair trade: political ecological imaginary and the moral economy of fair trade foods

This paper begins to explore the changing political geographies of alternative development as practiced and envisioned in the global South. Looking specifically at the growing movement and market for fair trade foods, this form of alternative development has become the moral business of latte drinkers and other reflexive consumers in Europe and the US. Fair trade attempts to re-connect producers and consumers economically, politically, and psychologically through the creation of a transnational moral economy. This re-connection is accomplished through material and semiotic commoditization processes that produce fair trade commodities. The semiotic production of these commodities and their traffic in particular ‘political ecological imaginaries’ is essential to the formation of ethical production-consumption links, acting to also politicize consumption and fair trade eaters. Fair trade's moral economy rides the tension between the ethical relationships it fosters and the need for the wily characteristics of enterprise in the construction of transnational trade networks. Bringing recent work on moral geography to bear, constructing this moral economy is an attempt to facilitate a sense of ‘solidarity in difference’ in the experiences of global economic inequalities between North and South and growers and eaters. At the same time, fair trade networks look to produce an expansive ‘spatial dynamics of concern’ in the fashioning of ethical places of production and consumption. The paper concludes with a brief discussion of the continuing dilemmas critical for fair trade and suggestions for further empirical study of fair trade provisioning and alternative development networks.     

Towards Free Trade in the Pacific? The Genesis of the ‘Kava‐Biscuit War’ between Fiji and Vanuatu

Contemporary movements towards trade liberalisation have influenced economic development in Pacific island states, where opportunities for growth have always been restricted. The new free trade, centred on comparative advantage, is especially challenging for countries producing sugar, where diversification is difficult, and for the smallest states where trade options have always been limited. New regional trade agreements have been introduced in the Pacific as a step towards global free trade, but have emphasised trade rivalry and conflict, characterised by the ‘kava‐biscuit war’ between Fiji and Vanuatu, rather than complementary trade and cooperation. Movement towards free trade poses acute problems for island states, yet international agreements have not recognised their particular disadvantages, and continue to stress benefits that are nowhere apparent in the Pacific.     

Brexit,Ireland and the World Trade Organization: possible policy options for a future UK–Australia agri-food trade agreement

Prior to the UK’s accession to the then European Economic Community in 1973, Australia was a significant supplier of Britain’s food. Membership of the European Union (EU) resulted in trade diversion, closing the British market to Australian sugar, for example. This article questions whether the UK’s exit from the EU (‘Brexit’) might usher in a new agri-food trade regime, restoring Australian farmers’ access to the British market, or whether other opposing political economy considerations might prevail. Would the UK unilaterally adopt free trade? Can a comprehensive free trade area agreement between Australia and the UK, including agri-food products, be negotiated? Any new relationship will need to reflect the UK government’s stated preference for a frictionless border with EU 27 (particularly on the island of Ireland), the World Trade Organization’s rule book, and the interests of the UK’s farm lobbies, as well as the UK’s quest for ‘free trade’ with the wider international community.     

Setting the rules: private power,political underpinnings,and legitimacy in global monetary and financial governance

The role of private market agents in global monetary and financial governance has increased as globalization has proceeded. This shift in both markets and patterns of governance has often been encouraged by states themselves in pursuit of liberalization policies. Much of the literature views these developments in a positive light, yet there are other aspects of these developments that also merit attention. This article supports its central propositions with two cases of emerging global financial governance processes: the Basel II capital adequacy standards for international banking supervision and the International Organization of Securities Commissions‐based transnational regulatory processes underpinning the functioning of cross‐border securities markets. Based on the case findings, the article argues first that private sector self‐regulation and/or public‐private partnership in governance processes can leave public authorities vulnerable to dependence on the information and expertise provided by private agents in a fast‐moving market environment. Policy in the vital domain of financial regulation has been increasingly aligned to private sector preferences to a degree that should raise fears of bureaucratic capture. Second, the article contends that the overall outcome in terms of global financial system efficiency and stability has been mixed, bringing a range of important benefits but also instability and crisis for many societies to a degree that has led to challenges to global governance itself. The case material indicates that the input, output and accountability phases of legitimacy in global monetary and financial governance are highly problematic, and much of the problem relates to the way in which private market agents are integrated into the decision‐making process. Third, the article posits that a better consideration of these three ‘phases’ of legitimacy and their interrelationships is likely to enhance the political underpinnings and legitimacy of global financial and monetary order.