Resolving or Exacerbating Disputes? The WTO's New Dispute Resolution System

In 1995 the dispute resolution system of the WTO was transformed to make it more effective in enforcing WTO rules. Ironically, the improvements in the system have contributed directly to greater conflict in the WTO. How can improving a system to resolve disputes actually exacerbate conflict? This article identifies a number of conflict‐enhancing consequences of the change in the dispute resolution mechanism. Conflict is not bad per se. Indeed, if the outcome of this conflict is that governments must better justify participation in the WTO, then conflict is good. But there is a danger that international courts are more likely than not to generate conflict, while the international legal and political system is less adept at weathering controversy and addressing valid public concerns. Left unaddressed, conflicts generated by international legal bodies can erode support for the international legal system and multilateral strategies in general. This article suggests solutions designed to build into internationally legalized processes political safety valves, greater political sensitivity, and improved accountability, as well as legitimacy enhancing devices. Demonstrated here in the case of the WTO, the analysis described applies to international legal systems generally.     

Trade and culture: the ongoing debate

ABSTRACT

The debate over how to reconcile trade liberalization with cultural policy is a long-standing one. There is great variation in how countries have navigated this debate. Furthermore, evolving individual policy approaches show noteworthy dynamism, largely in response to domestic politics, shifts in the international trading system and technological developments. This special issue explores different approaches to the trade and culture debate across geographic space, as well as the evolution across time through analysis of six cases – Canada, the European Union, South Africa, Latin America, the United States and China.     

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.     

Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.     

European Union External Trade Policy: Multilevel Principal–Agent Relationships

This article examines the potential political influences on European Union (EU) external trade policymaking. Given the EU's volume of international trade and its extensive involvement in bilateral and multilateral trade arrangements, a better understanding of how the EU makes external trade policy is increasingly important. It is an extremely complex process—involving the EU public, the 25 member states' parliaments and governments, and the institutions of the EU, including the Council of Ministers, the European Parliament, and the European Commission. It is a system of multilevel governance with overlapping jurisdictions with numerous potential access points for societal interests to influence European external trade policy. In this article, we evaluate the probable political channels that societal interests could use to influence EU external trade policy. We employ the principal–agent (P–A) framework to examine five of the more important P–A relationships that are likely to influence EU external trade policymaking. We conclude that EU policymaking as it pertains to external trade is quite insulated from general public pressures. The primary institutions involved in external trade policymaking are the EU Council of Ministers and the Commission—both of which are largely insulated from the public. Future empirical work should focus on this relationship between the Council of Ministers and the Commission.     

The political requisites of an open international economic system: United States balance of payments policies during the 1960s

This paper explores the political context of an increasingly familiar phenomenon: unilateral interference with international trade and payments. The particular case examined is that of US balance of payments policy between 1960 and 1971, during which time the country which had been the world's foremost advocate of an open world economy attempted to separate the US and international capital markets. The policy is explained at two levels: systemic political imperatives to explain the overall structure of policy choices, and domestic bureaucratic politics to explain the changing sources and objectives of policy. The Bretton Woods system linked US political power to the international monetary system in such a way as to leave the US no choices but those of capital export controls or the destruction of the entire system, as the US balance of payments moved into deficit. The domestic policy process reacting to these international strains followed a pattern of progressive politicisation, which lifted the issue out of the hands of the Treasury and into the White House. Finally, it is suggested that an examination of the political structures which led to restrictive policies in the monetary sphere may shed some light on the current trends toward protectionism in the trade area.     

Politics of Engagement: Gender Expertise and International Governance

This article studies the experiences of gender experts in international institutions of governance and examines their interactions with multiple actors in the governance system as they negotiate their authority to act as experts. Moving beyond binaries, such as those on the inside of hegemonic institutions versus those on the outside, or co-optation versus activism, the analysis uses processes of instrumentalization as a vantage point to lay out the multiple paths emerging in these politics of engagement. The article frames politics of engagement in terms of micropolitical tensions, ambivalences and contradictions that unfold in these interactions. It first argues that the boundaries that exist between inside and outside institutions are not clear cut because actors circulate between them. The study shows how gender experts instrumentalize their own life and career trajectories, navigating between advocacy and governance, to enhance their power in current institutional settings. It then focuses on instrumentalist discourses and traces their emergence in unequal negotiations. It demonstrates how gender experts can become part of the processes that they also critique. Finally, the study analyses strategies in which experts instrumentalize institutional inequalities to their advantage to produce diverse political possibilities with open-ended outcomes.     

Afghanistan–Pakistan relations: border controversies as counter-terrorist impediments

When the Taliban regime was overthrown in Afghanistan in late 2001, there was much optimism that, with the anticipated and unprecedented economic, political and military engagement of the international community with Afghanistan, the country would become stable. However, resurgent violence indicates that this is not happening. An important reason for the continuing instability lies in the fact that the international effort has failed to address longstanding disagreements between Afghanistan and Pakistan—the Durand Line border dispute and the Pushtunistan issue—which in turn impairs the two countries’ cooperative capacity in the anti-Taliban campaign. Resolution of these disputes would go a long way to help the situation. This article analyses the dynamics of the border dispute, the Pushtunistan issue and the Taliban insurgency as an outgrowth of longstanding historical disputes between Afghanistan and Pakistan.     

The Sunland Park/Camino Real Partnership

The location and management of landfills is among the many controversial issues confronting many American communities. Greatly increasing the controversy is the issue of interest group politics in the local landfill siting and international waste trading policies. Exploring the historical and political controversies, this study examines landfill politics in a public-private partnership. The analysis reveals the vulnerability of local public authority and citizen participation in this kind of partnership.     

Precarious Democratization and Local Dynamics in Niger: Micro–Politics in Zinder

Literature on the African state often finds it hard to specify what is state and what is not. The closer one gets to a particular political landscape, the more apparent it becomes that many institutions have something of a twilight character. This article argues that studies of local politics in Africa should focus on how the public authority of institutions waxes and wanes and how political competition among individuals and organizations expresses the notion of state and public authority. This is explored in the context of contemporary political struggles in Niger, played out in three different arenas in the region of Zinder around 1999, as home–town associations, chieftaincies and vigilante groups all take on the mantle of public authority in their dealings with what they consider to be their antithesis, the ‘State’.     

Going Global: Assessing Presidential Foreign Travel

Abstract

Since President Franklin Delano Roosevelt broke the “Ironclad Custom”—and especially following World War II—presidents have routinely traveled outside of the United States to visit other countries and meet foreign leaders and publics. Presidents are expected to engage in face-to-face diplomacy, but they must also be present and active in domestic politics. To balance these pressures, presidents need to be strategic and mindful of their limited political resources and the opportunities the political environment creates. How, then, do international and domestic political resources and opportunities affect the extent and frequency of foreign travel? To examine this question, we collected and analyzed a dataset of presidential foreign travel—number of trips, countries visited and days spent abroad—during the post-World War II period (1953–2016) and estimated the frequency of travel with a set of explanatory variables that capture U.S. foreign involvement as well as the domestic policy agenda and political incentives that affected presidents from Eisenhower to Obama. Our findings demonstrate that domestic policy and political incentives are strong determinants of presidential foreign travel.     

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.     

China’s Exchange Rate Policy Making: International Pressures Meet Domestic Politics

With China’s economic rise and in particular its massive international trade surplus with the rest of the world, the exchange rate of its currency has come under increasing scrutiny in the new millennium. Based on a critical review of existing International Political Economy (IPE) theoretical approaches on exchange rate politics – the Innenpolitik approaches and the international-domestic interaction approach – this paper argues that two-level game theory is a suitable tool for explaining the development of China’s exchange rate policy. By specifically examining the external factors and domestic sources of China’s exchange rate policy, this paper develops a complete analytical framework in which China’s central decision makers are understood to strive to reconcile international pressures and domestic bargainers when making decisions on exchange rate policy. After offering a theoretical review, revision and synthesis, the paper provides an empirical study of China’s 2005 exchange rate reform to specifically show how international factors played an agenda-setting role in China’s exchange rate policy making and how China’s domestic politics determined the pathway of the exchange rate reform in July 2005.     

Traceable Tasks and Complex Policies: When Politics Matter for Policy Implementation

Implementation represents a key venue for the expression of political conflict. The challenge of illusory implementation, implementing the law's letter but not its spirit, has long vexed scholars and architects of public policy. We develop a political model of policy implementation to predict the kinds of politics—electoral, group, administrative—that different parts of complicated laws activate during implementation. Using original state‐level data on landmark education policy, we assess whether and how these politics render illusory implementation more or less likely for specific policy tasks embedded in complex laws. Consistent with our model, we find electoral politics render illusory implementation less likely for a narrow set of tasks. Group‐based politics and administrative politics bear on illusory implementation for a broader set of tasks in diverse ways. Overall, how policy activates politics during implementation depends on the features of the policy lever, where it is put into practice, and how traceable it is to the bureaucrats who do the implementing. Further, the results underscore how nuanced insights about implementation emerge when one considers individual components of complex laws, rather than treating the laws themselves whole cloth.     

Leaders in Thinking,Laggards in Attention? Bureaucratic Engagement in International Arenas

Frameworks that examine policy subsystems, networks, and coalitions view bureaucracies as part of the mix of policy actors that advocate policy positions in both domestic and international arenas. However, few examine bureaucracies as independent actors and how they exercise influence distinct from other pressure groups. The ways in which domestic bureaucracies engage in the international environment is woefully under examined, with only a few studies examining how domestic bureaucrats affect decision making in the international arena. However, it is not unreasonable to posit that bureaucratic engagement in the international arena may have political implications in the domestic sphere. Building on examinations of bureaucratic autonomy, this research queries the ways in which domestic bureaucracies can interact in the international arena to "change agendas and preferences" of domestic political actors. While it finds that attention to developing an international reputation can enhance political leverage at home, it may do so at a cost to domestic programs if insufficient attention is given to domestic aspects of the organization's mission. Nevertheless, as attention lurches from one arena to another, policy change is facilitated by the politically powerful resources of an international reputation in expertise, active engagement in the international policy community, and broadly based support for programmatic change.     

对华贸易摩擦与我国对外贸易地理方向调整——基于收入需求偏好相似理论的分析

近来对华贸易摩擦数量更是呈现上升趋势。我国应该从贸易摩擦的国内原因着手,提升本国的国际竞争力。当前对华贸易摩擦与我国偏向性的对外贸易地理方向表现出重合性。要从根本上解决当前困境,就应该利用需求偏好相似理论逐步调整对外贸易方向,把原有的欧、美、日为主要导向出口贸易调整到各大洲并重的全球贸易战略。我国应特别注重拓展非洲、拉美市场,在缓解贸易摩擦危害的同时使中国走向贸易强国。     

In Search of ‘Affectionate Regard’: American Merchant Lobbies and the State during the Atlantic Imperial Crisis*

This article revisits the politics of British merchants trading to North America in the period between 1763 and 1783. Their political success and failure in this critical period have been examined primarily in terms of their impact on the escalation of imperial crisis, with the day‐to‐day operation of merchant politics rarely taken into full account. This article takes an alternative approach of studying the political influence of merchants trading to North America within the context of their interaction with the state. By looking into the organisation, the process of lobbying, and the arguments that the merchants adopted, the article highlights how, in response to many sources of tension and uncertainty inherent within their relationship with the state, they demarcated their own areas of contribution to the shaping of commercial and colonial policy. Through the case study of merchants trading to North America, this article sheds further light on the necessity to understand the evolution of such modern political institutions as commercial lobbies in their specific economic and political contexts.     

狄斯雷利与东方危机时期的英国政治斗争

1875-1878年的东方危机几乎贯穿了狄斯雷利的整个第二届首相任期.在这次危机中,狄斯雷利不仅在国际舞台上为维护英国的利益纵横捭阖,还在国内与格拉斯敦为首的自由党反对派和以德比为首的党内反对派明争暗斗,而后者在相当大的程度上影响了狄斯雷利外交政策的基调.分析狄斯雷利的帝国主义观点以及当时的国内政治斗争,无疑有助于我们从一个侧面加深对英国东方政策的认识和了解.     

The politics of protecting the poorest: Moving beyond the ‘anti-politics machine’?

Famously derided as the ultimate ‘anti-politics machine’, international development has increasingly sought to integrate a stronger political perspective within its ambit. This includes devising new forms of political analysis to inform development interventions and efforts to support forms of politics that are deemed to be ‘pro-poor’. However, this engagement with pro-poor politics remains limited and the agenda of advanced liberalism that international development agencies remain embedded within tends to draw its understandings of politics from ideology rather than evidence. Case-study analysis of the politics associated with successful social protection interventions in eight countries suggests that the political modes preferred within advanced liberalism – including civil society representation, inclusive policy spaces, and securing ownership – have been much less important in securing poverty reduction than more deeply political institutions and processes, particularly efforts from within political society to re-embed capitalism and extend social contracts to previously marginal groups. Deeper forms of political, political economy and political geography analyses are required to capture the politics of reaching the poorest groups, which needs to be understood in terms of processes of capitalist and political development that have important spatial dimensions, and which can be conceptualised in terms of extending the ‘social contract’ between states and citizens.     

Australia's embrace of investor state dispute settlement: a challenge to the social contract ideal?

This paper explores the origins of investor-state dispute settlement (ISDS) treaties and their implications for the Australian social contract. This analysis includes how and why ISDS emerged in NAFTA, was rebuffed with the failure of the Multilateral Agreement on Investment (MAI), and became incorporated into most subsequent bilateral US trade and investment agreements. The paper considers Australia's exposure to ISDS—first through using it in bilateral investment agreements in nations with inadequate governance mechanisms to support the rule of law, then turning against it when a multinational tobacco company tried to use the mechanism to overturn scientifically endorsed, democratically approved and constitutionally validated tobacco plain packaging measures. The paper concludes by exploring the hypothesis that an alternative governance vision can be achieved in which the system of investment arbitration and trade law is made coherent with presumptively more democratically legitimate normative systems such as constitutional and international law.