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.     

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.     

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.     

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。     

“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.     

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.     

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.     

Russia’s Accession to the World Trade Organization

Two noted British economists survey a range of issues linked to Russia’s forthcoming accession to the World Trade Organization (WTO) and its implications for the Russian economy. They describe the far-reaching commitments Russia has undertaken in the realm of tariffs, non-tariff barriers, and openness to inward investment, identifying factors that tend both to support and challenge realization of these commitments. They follow with a brief historical account of the reasons why the accession process for Russia was so protracted and an assessment of the likely medium- and long-term economic impacts of accession for the country as well as for its particular regions and social groups. The arguments suggest that the likely direct impacts of accession will overall be modest (at least over the near- to medium-term), and focused in spheres in which a foreign presence may enhance the productivity of Russian firms in the domestic market (e.g., business services). Potentially, more substantial indirect benefits will largely depend on the scale and seriousness of domestic reform policies launched in support of WTO compliance (i.e., effects of accession on Russia’s political economy). Journal of Economic Literature, Classification Numbers: F130, F500, P330. 3 figures, 6 tables, 54 references.     

In the Shadow of Globalization: The European Community and the United States in the GATT Negotiations of the Tokyo Round (1973–1979)

This article explores the trade negotiations between the United States and the European Community in the Tokyo Round of General Agreement on Tariffs and Trade (GATT) negotiations, held in Geneva from 1973 to 1979. The article shows how the economic turbulence and the different domestic stances and policies toward the globalizing economy split the Western members of GATT into two camps. Countries, like France and the United Kingdom, less well equipped to face increased worldwide competition and the economic crisis were not keen on trade liberalization. Countries, like the United States and Germany, better equipped to face worldwide competition and in favour of policies that strengthened it, saw trade liberalization as the right path. Eventually, under US President Jimmy Carter's leadership and with the key support of Chancellor Helmut Schmidt, the results of the Round reflected a vote in favour of liberalizing international trade. Thus, the Round was shaped by the globalizing economy but, at the same time, its results gave further impetus to the globalization wave that would reach full swing in the 1980s–1990s. The GATT talks took place in the shadow of globalization: while attempting to govern the process, also built it up.     

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.     

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.     

The case of the World Trade Organization

This article explores the relationship between power and rules within the context of international relations, utilizing as a case‐study what is arguably the most powerful international juridical institution in the world today, the World Trade Organization (WTO). The author draws upon a number of his previous works on the subject of the WTO and its predecessor, the GATT, wending through such topics as: the way that political and diplomatic leaders improvized and filled in the gaps of international institutions when the original idea for an International Trade Organization (ITO) failed; the remarkably elaborate development of the particularly deep and rich WTO Dispute Settlement (DS) jurisprudence (over 60,000 pages); and the constant tension between the role of nation‐state power and the power allocated to international institutions, apparently necessitated by the huge impact of ‘globalization’ and interdependency in world affairs (especially economic) today. Various specific issues and cases illustrate these tensions and allocations, including treaty interpretation techniques, the degree of deference towards the members’ government actions, the arguments about the appropriate role of the ‘adjudicators’, and the delicately sensitive approach of the DS system towards clashes of policy necessitating ‘balance’. Throughout, particular emphasis is laid upon the ‘rule oriented’ (‘more legalization’) approach of the WTO DS jurisprudence, both in reflection on the historical and current developments of that juridical system—from ‘power oriented’ to ‘rule oriented’—and also in the important roles regarding tensions between ‘sovereignty’ concepts and international rule needs.     

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.     

West Papua and the Australia-Indonesia relationship: a case study in diplomatic difficulty

This article is a study of West Papua's impact on the relationship between Australia and Indonesia. Its purpose is to enhance understanding of various diplomatic challenges emerging from West Papua, the origins of these challenges, and how they impact upon the relationship. This will be achieved through an analysis of a particular incident in 2006 in which 43 West Papuan refugees arrived in Australia. This led to a diplomatic storm between the Indonesian and Australian governments, and a highly charged public debate. Insights will be gleaned from the incident and its aftermath to broaden our understanding of West Papua's impact on the Australia-Indonesia relationship.     

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.     

Common Counsel,Common Policy: Healthcare,Missions and the Rise of the ‘Voluntary Sector’ in Colonial Tanzania

Analysis of the voluntary sector in sub‐Saharan Africa has tended to focus on the role of the NGO, and the types of relationships this institution establishes and maintains with donors, national governments and the communities with which they work. The voluntary sector in Africa is therefore usually defined through, and often treated as synonymous with, the institution of the NGO. As a result, the boundaries of understandings of the ‘third sector’ space occupied by the vast number of NGOs — its origins, the nature of the relationship of voluntary sector actors to the state, the types of organizations that characterize the sector — have tended to reflect a narrow concern with the NGO type and its experiences. This article suggests that this view is too narrow in its gaze. The voluntary sector was not a creation of a post‐colonial (and especially post‐1970s) development crisis. It emerged from an evolving relationship between colonial‐era non‐state (voluntary) actors and governments determined to demonstrate that they were meeting their commitments to the welfare of Africans under their charge. Missions and mission welfare services, expanding across much of rural sub‐Saharan Africa by the beginnings of the twentieth century, and increasingly coordinated from the late 1920s and early 1930s, created the foundations for the emergence of sub‐Saharan Africa's formal voluntary sector as it exists today. This matters for more than just historical accuracy. To understand the constraints, challenges and opportunities faced by NGOs, we need to move beyond a narrow focus on the institution of the NGO itself, and look in addition to the environment in which it operates: its history, its evolution and the shifts that created those conditions.     

Australian and People's Republic of China government conceptions of the international order

Through qualitative comparative analysis of policy documents and official statements over the last 10 years (2008–2018), this paper examines Australian and PRC government conceptions of the international order and the associated policy implications. Their understandings of the international order are informed by their self-defined national role conceptions and perceptions of other states, and are manifested in discussions of institutional reform, international law and human rights. Australia's self-conception as a middle power informs its emphasis on maintenance and US leadership of the existing order, while the PRC's self-conceptions as both a developing and established power enable it to frame itself as either an upholder or reformer of the order. Both governments highlight the ‘rules-based’ mechanisms of the WTO, and are more likely to agree on trade and economic issues than on other matters. Their responses to the 2016 South China Sea arbitration tribunal decision and discussions of the role of human rights in the international order suggest less agreement is likely on international law and human rights norms. While Australia considers the PRC a potential challenger to the existing order, Australia does not feature in PRC discussions of international order, suggesting its limited ability to affect PRC foreign policy decisions.     

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.     

Iranian Membership in the World Trade Organization: An Unclear Future

Iran is the largest economy that is not currently included in the World Trade Organization (WTO). This paper addresses why Iran has not yet joined the WTO and whether it is ready to join. Iran's interaction with the General Agreement on Tariffs and Trade (GATT) in 1948 marks the beginning of the relationship between Iran and the WTO. To determine why Iran has not yet entered the WTO, the role and penetration of powerful members of the WTO and Iran's economic position are examined. To determine whether Iran is ready to join the WTO, literature is reviewed concerning the effects of joining for the five most-affected major industries in Iran. The major disadvantages of joining the WTO are described as short-term effects, and the advantages of joining are described as long-term goals. Currently, no clear scheme has been offered to handle the negative effects on the Iranian economy. As the major player, the Iranian government could achieve the long-term goals with a realistic and well-planned strategy or miss the mark through its inattention to the critical economic effects.     

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.