International Trade Negotiations Research Articles

한국의 대외 수출에 미치는 TBT와 미통보 기술 규제의 영향분석: 중력모형과 PPML 방법론을 통한 접근

This study investigates the impact of Technical Barriers to Trade (TBT) and unnotified technologies on South Korea’s foreign exports, analyzing the background and objectives. With the expansion of regional economic blocks such as FTAs, the EU, and NAFTA, the scope of non-tariff barriers, including TBT and Sanitary and Phytosanitary (SPS) measures, has broadened. These non-tariff barriers, often implemented for safety purposes like environmental protection, can increase shipping and compliance costs, imposing a burden on domestic industries. The main objective of this study is to quantitatively evaluate the effects of TBT and unnotified technologies on South Korea's exports across various industries from 1995 to 2022. To achieve this, we employ the gravity model, one of the most widely used models in explaining trade conflicts, alongside the Poisson Pseudo Maximum Likelihood (PPML) method, which is suitable for handling the complexities of trade data with zero trade flows. This approach enables a detailed analysis of the impact of TBT and unnotified technologies on export performance, disaggregated by objective and industry. The results reveal that while TBT has a positive effect in promoting exports, unnotified technologies have a negative impact. These findings highlight the importance of distinguishing between the two in international trade negotiations.

Analysis and Reflection on the Strategy Benchmarking of Power Battery Management in China and Europe

In 2023, the European Union (EU) enacted the Regulation on Batteries and Waste Batteries (hereinafter referred to as the New Law on Batteries), which strengthens the regulatory framework for the entire lifecycle of power batteries. This development presents both challenges and opportunities for global power battery manufacturers and operators. As a significant player in the global power battery industry chain and the world’s largest producer of electric vehicles and power batteries, China must systematically assess the impact of global battery management strategies, including the EU’s New Law on Batteries, from a lifecycle perspective. This understanding is crucial for maintaining China’s competitive edge in the global power battery market and achieving mutually beneficial outcomes in international trade negotiations. This paper constructs a strategy analysis framework based on the lifecycle approach. By summarizing the power battery management strategies of both the EU and China, it provides a comprehensive overview of strategies across different countries, highlights the key regulatory focus areas, and offers relevant strategy recommendations. The main conclusions and insights are as follows: (1) The New Law on Batteries achieves lifecycle regulation from “cradle” to “grave” and back to “cradle”. (2) China emphasizes the management of waste power batteries, with an increasingly robust strategy system at the recycling stage, yet lacks comprehensive measures for other lifecycle stages. (3) The EU has established a comprehensive lifecycle strategy management system centered on the New Law on Batteries, characterized by strong coordination and a synergistic combination of strategies across different sectors. Finally, this paper identifies three major compliance challenges posed by the New Law on Batteries, necessitating enhanced strategy development and implementation in the areas of carbon footprint management, circular economy, and digital battery passports.

THE ISSUES OF SCOPE AND LEGAL STATUS IN WTO – IMF CONSULTATIONS

In designing the international economic governance system after the Second World War, trade and finance, due to the close connection between them, were addressed as parts of a whole. A predictable and stable international monetary system was recognized as prerequisite for healthy and sustainable trade. However, these two issues were regulated under different institutional structures, by envisaging close cooperation and coordination. The International Monetary Fund (IMF), designed to be responsible for international finance and monetary issues, was established in 1944. The International Trade Organization (ITO) was designed to address international trade, while the General Agreement on Tariffs and Trade (GATT), with a limited scope, was temporarily put into implementation in January 1, 1948 to provide rapid tariff reductions until the ratification of ITO Charter. The ITO became still-born as it was not approved by national parliaments, especially the USA, and international trade continued to be regulated by the GATT. The GATT, with its unique organizational structure that gradually developed, continued its existence until the establishment of the World Trade Organization (WTO) in 1995 and hosted international trade negotiations. WTO, with more advanced legal and institutional structure, took over the functions of the GATT. Formal consultation procedures have constituted an important part of the cooperation between the GATT/WTO and the IMF in the context of the management of international trade and monetary/financial system. These procedures differ from traditional cooperation activities between international organizations and have a special character. It is regulated in a binding language as an obligation for the relevant WTO bodies to apply for consultations with the IMF on certain issues and to comply with the inputs received from the IMF. There are some points open to interpretation regarding the scope of the consultations and the binding and functional status of IMF inputs in the WTO. This study discusses the issues of scope and legal status.

Analysis on Pragmatic Failures in Cross-Cultural Business Negotiation Interpretation

As economic and social development deepens, cross-cultural communication is also gaining more and more attention. English interpreting is an integral part of international business negotiations. Pragmatic failures in business negotiation interpreting can directly affect the quality of negotiation communication, and sometimes even lead to misunderstandings and the breakdown of negotiations. Reducing the pragmatic failures in interpreting in negotiations and improving interpreting skills can play a positive role in facilitating international trade negotiations. Based on Leech's and other scholars' research on pragmatic failures, this paper discusses the manifestations of cross-cultural pragmatic failures in business negotiation interpreting from the perspectives of pragmalinguistic and sociopragmatic failures, and analyzes the causes of the resulting pragmatic failures in detail. Interpreters should not only focus on language ability and interpreting skills, but also on the cultivation of intercultural awareness and pragmatic competence and thus promote international business negotiations.

Assessing the potential of GHG emissions for the textile sector: A baseline study

The carbon footprint (CFP) is a measure of greenhouse gases (GHGs) emitted throughout the lifecycle of a product or activity, while the energy footprint (EFP) and water footprint (WFP) measure energy and water consumption, respectively. These footprints are essential for managing emissions and consumption and promoting low-carbon consumption. A carbon labeling scheme could help consumers make informed choices. Asia is a major textile producer and consumer, so studying textiles' carbon, energy, and water footprints is essential for managing domestic emissions, energy and water consumption, and international trade negotiations. This paper presents a method and framework for assessing CFP, EFP, and WFP at the product level and calculates the footprints for textile products. The results show that the total CFP of all textile products produced is 42,624.12 MT CO2e, with indirect emissions contributing significantly more than direct emissions. The total EFP is 248.38 PJ, with electricity consumption being the main contributor, while the total WFP is 80.71 billion liters. The spinning stage of production has the highest CFP and EFP, and energy consumption is the main contributor to all footprints. These results can help compare different products and reduce the footprints of the textile sector.

Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP

Which companies gain and which companies lose from trade agreements? In contrast to a view that sees the largest companies as the main beneficiaries of trade agreements, we argue that medium-sized companies gain the most from them. Moreover, we examine whether more capital-intensive and more diversified companies benefit more than other firms. Our empirical test relies on a dataset with daily firm-level stock price data for close to 4,000 US companies over the period 2009–2016. Concretely, we assess how the shares of different types of firms reacted to the news on the (lack of) progress of the negotiations aimed at concluding the TPP and TTIP. We find support for the view that medium-sized and diversified companies win the most from trade agreements. Besides speaking to the literature on the distributional effects of trade agreements, the article contributes to recent research on the role of firms in the international political economy and the stock market consequences of political events. It also presents a novel approach to measuring progress and stagnation in international trade negotiations using computational text analysis.

Green Total Factor Efficiency in Vegetable Production: A Comprehensive Ecological Analysis of China’s Practices

This study undertakes a comprehensive analysis of vegetable production efficiency in China using input–output data from 30 provinces spanning 2011 to 2017. By incorporating environmental pollution costs as undesirable outputs alongside vegetable output value, we employ Data Envelopment Analysis (DEA) with the Banker, Charnes, and Cooper (BCC) model and the Malmquist index model. Our assessment reveals both annual and inter-period efficiency changes. The findings highlight a modest overall efficiency in China’s vegetable production and significant regional disparities. Technical progress emerges as a pivotal determinant of total factor productivity (TFP). Recognizing these dynamics, we propose policy recommendations that prioritize technical innovation, sustainable practices, rural infrastructure enhancement, and specialized cultivation methods. Implementing these recommendations could bolster China’s position in international trade negotiations due to increased exports and potentially drive broader environmental policy reforms. As vegetable production becomes more efficient and sustainable, there might be a shift in labor needs, potentially leading to migration patterns or changes in employment structures. These insights contribute to the sustainable development of China’s vegetable industry, offering a broader understanding of the dynamics of agricultural efficiency in the context of environmental sustainability.

Bargaining Power in a Globalized World: The Effect of Global Value Chains in Trade Negotiations

AbstractWhat determines the bargaining power of states in international trade negotiations? The literature focuses predominantly on economic strength as the determinant of bargaining power. However, this explanation neglects the reality of modern trade, which is characterized by the globalization of production and high levels of economic interdependence. I argue that this interdependence undermines the effect of economic strength on the bargaining power of states. Specifically, I hypothesize that the effect of economic strength declines when a country's companies rely on inputs for their production from a negotiation partner because they are integrated into global value chains. The more a country's firms are dependent on a partner country, the less that country is able to coerce concessions from the partner country by bringing to bear its economic strength. To test this hypothesis, I use a dataset covering concessions on liberalization of the services sector made by 54 countries in 61 preferential trade agreements. By calculating the relative concessions of each partner, I construct a quantitative indicator of the outcome of trade negotiations. This indicator should reflect the underlying bargaining power of each negotiating party. The results of a regression analysis of these negotiation outcomes mostly support my hypotheses.

Current and Potential Future Global Distribution of the Raisin Moth Cadra figulilella (Lepidoptera: Pyralidae) under Two Different Climate Change Scenarios.

Global trade facilitates the introduction of invasive species that can cause irreversible damage to agriculture and the environment, as well as stored food products. The raisin moth (Cadra figulilella) is an invasive pest that poses a significant threat to fruits and dried foods. Climate change may exacerbate this threat by expanding moth's distribution to new areas. In this study, we used CLIMEX and MaxEnt niche modeling tools to assess the potential global distribution of the raisin moth under current and future climate change scenarios. Our models projected that the area of suitable distribution for the raisin moth could increase by up to 36.37% by the end of this century under high emission scenario. We also found that excessive precipitation decreased the probability of raisin moth establishment and that the optimum temperature range for the species during the wettest quarter of the year was 0-18 °C. These findings highlight the need for future research to utilize a combined modeling approach to predict the distribution of the raisin moth under current and future climate conditions more accurately. Our results could be used for environmental risk assessments, as well as to inform international trade decisions and negotiations on phytosanitary measures with regards to this invasive species.

Analysis of Political Economy on the Influential Factors of Digital Trade Restrictions

Digital trade is an important part of today’s world economy, and the resulting issue of digital trade restrictions has become the focus of attention in international trade negotiations. Studying the influential factors of digital trade restrictions can help to understand the inherent reasons for the differences in digital trade policies across countries. From the perspective of political economy, this paper establishes a government objective function that pays special attention to the welfare of digital trade-related interest groups based on the protection for sale model, and analyzes the endogenous influencing factors of digital trade policy. In this paper, the QCA method is also applied to analyze the configuration of different influencing factors, and finally two paths leading to high digital trade restrictions and three paths leading to non-high digital trade restrictions are found. The research findings have significant implications both theoretically and practically for revealing the factors and internal mechanisms that affect digital trade restrictions.

무역협상 배경요인 및 협상전략이 한국 중소무역기업의 비대면 협상성과에 미치는 영향

Purpose – The purpose of this study is to analyze the relationship between background factors of business negotiation and negotiation outcome for Korean small and medium sized trading companies. Design/Methodology/Approach - By analyzing business negotiation factors such as culture, organization, knowledge on trade practice, individual characteristics, and negotiation process, a research model was derived, and research hypotheses were verified. Findings - The results of this study are as follows. Cross-cultural awareness, organizational support, trade practice knowledge, and individual characteristics had positive direct effects on negotiation outcomes, and negotiation outcomes also had a positive effect on negotiation profit, while cooperative negotiation strategy did not have a significant effect on negotiation outcomes. Research Implication - International trading companies increasingly rely on international trade negotiations for survival and growth. It was found that factors such as cultural difference, organizational support, individual characteristics, and cooperative strategy are important factors affecting positive negotiation outcomes. Therefore, it is essential that negotiators in small and medium trading companies need to understand the cultural differences of their counterparts, and the organization needs to provide direct support to negotiators. Based on the results of this study, strategic alternatives were suggested for trade negotiators to conduct efficient trade negotiations.

Special Economic Zones: The Subnational- National-International Nexus in China’s Integration With the International Economic Order

This article investigates China’s Special Economic Zones (SEZs) strategy in the context of China’s integration with the international economic order by concurrently examining China’s internal and external economic policy. It expounds the experimental development path of a massive unitary country which strives to balance between the international pressure against the background of economic globalization and the internal unevenness across different regions. Based on case study of SEZs in different historical times, this article explores a subnational-national-international nexus in China’s integration with the international economic order. This article highlights that, throughout the history, the Chinese central government persistently mobilizes certain regions and names them as SEZs to experiment innovative policies, so as to facilitate the enactment of foreign economic policies and the engagement in international trade and investment negotiations. This study opens the black box of the Chinese State and tells a complementary story regarding China’s interaction with international economic law from a structural perspective. It provides a springboard for future studies of China’s engagement with the rules-based global economy in a world where the international economic legal order recursively travels across international, national and local levels. China, Special Economic Zones, International Economic Order, Regional Trade Agreements, Bilateral Investment Treaties, Shenzhen SEZ, Shanghai FTZ, Hainan FTP, Subnational-national-international Nexus

Book Review: Poverty Narratives and Power Paradoxes in International Trade Negotiations and Beyond

Book Review: Poverty Narratives and Power Paradoxes in International Trade Negotiations and Beyond

Fair Use of Geographical Indications: Another Look at the Spirited Debate on the Level of Protection

AbstractOne of the most contested issues in international trade negotiations is the level of protection granted to geographical indications (GIs). WTO Members are divided between the ‘Old World’ represented by the European Union and the ‘New World’ headed by the United States. For decades, conventional wisdom has suggested that the debate is indeed a disagreement over the terroir idea. This article tackles the debate from a largely unexplored perspective, namely, fair use exceptions, which allows us to find the opposite: even if countries embraced the terroir idea equally, the divide on protection level would persist because of divergent approaches to the fair use of GIs. This divergence derives from countries’ different preferences for balancing conflicting interests, different policy goals, and different understandings of what is ‘fair’. Other countries should take these considerations into account when choosing a protection level suitable for their national conditions and goals.

ICT and the trading negotiation for international sale contracts in the Pacific Alliance firms

Introduction. The information and communication technologies (ICT) have change the way that firms carry out their international business transactions because small, medium, and large companies are increasingly adopting these tools in order to enhance the productivity into operational processes including the commercial and industrial internationalization. Objective. This article aims to identify the most used ICT in the international trade negotiation process for achieving import and export contracts within the Pacific Alliance companies. Methodology. Then, a survey in 401 internationalized firms was carried out into this regional trade bloc comprised of Chile, Colombia, Mexico, and Peru. Likewise, a descriptive analysis is applied to present the results of the study highlighting the most used ICT into the international trade negotiation and, similarly, an ordered logistic regression is applied in order to explain both the level of importance given to ICT in the negotiation process and the use frequency within this trade agreement. Findings. The research also reveals that ICT are essential for each international negotiation phase, especially in the preparation phase. Conclusion. The use of specialized ICT such as e-procurement, ERP, CRM, NSS, and scenario building software increases as the size of the companies also increases.

The Concept of Negotiation in International Trade

This study discusses the concept of negotiation in international trade. In this case, our research aims to study the concept of negotiation in international trade, especially export and import negotiations. In conducting negotiations, things must be considered in understanding the target foreign market to be achieved. Negotiations that go well will result in an agreement. The methodology in this study uses a descriptive qualitative analysis of content analysis. Regarding the concept of negotiation, there are several important things that need to be considered in starting negotiations, including being able to choose the right time, adequate place and location, creating a positive, relaxed, and understandable atmosphere, setting an agenda to be discussed, and formulating an appropriate offer. . proposed, handle conflicts encountered, communicate well and effectively, improve good listening skills and reach an agreement more quickly and efficiently so that agreement can be reached quickly. We find that in every stage of international trade negotiations there will be two parties who have different points of view so it is the agreement that creates the negotiation.

Embodied CO2 in China’s trade of harvested wood products based on an MRIO model

International trade of goods is also flows of CO2. As a key exporter of harvested wood products (HWPs), China emits a large amount of CO2 to meet the consumption of other countries. This article uses an MRIO model to quantify the embodied CO2 emissions of China’s HWP sectors in international trade based on the WIOD database. China’s CO2 emissions from a production perspective were 121.25 Mt, more than four times those from a consumption perspective. China was a net exporter for embodied CO2 in HWP sectors, while the US was China’s largest importer. In addition, the furniture sector exported more embodied CO2 by international trade than those from the wood and paper sectors. Based on the unbalances of exports and imports, establishing a common international standard to share the responsibility for CO2 emissions is of great urgency in HWP sectors. This article facilitates promoting CO2 emission reduction in HWP sectors and references China’s future participation in international trade and environmental negotiations.

A Trade Agenda for the Right to Food.

Whoever benefits from a trade regime in effect gains power over significant aspects of different food systems. And yet the WTO still does not provide a coherent food policy and the 2021 UN Food Systems Summit made very little space for trade policy. The degree of international trade policy discord and supply chain fragility strongly suggests that there must be new international trade negotiations around fundamental questions of principle. Seeing little benefit in reforming the WTO, this article explains how the trade agenda for the right to food could focus on territorial markets and negotiating new types of treaties, International Food Agreements.

Crafting a Post-Pandemic IP Policy Agenda for Latin America

Critical changes to the intellectual property right (IPR) legal frameworks of Latin American (LA) countries have been made as a result of international trade negotiations and agreements. The TRIPS Agreement, which constitutes the cornerstone of the global IPRs legal architecture, has certainly shaped the IP policy agenda and dialogue since 1995. To identify, reaffirm, preserve and legally operationalize TRIPS’ ‘flexibilities’ has become key to Latin America’s international and local IP policy. But how has the pandemic impacted the regional IP policy agenda’s dynamics, themes and future prospects? The TRIPS Agreement introduced global IP protection standards that were higher compared with those existing in international instruments and local norms in Latin America at that time. In particular, TRIPS’ standards include patent protection for 20 years (Art. 33); patent availability for any inventions (whether products or processes) in all fields of technology (Art. 27 para. 1); protection of plant varieties either by...

Analisis Dampak FLEGT VPA Terhadap Ekspor Hutan Indonesia Ditengah EU Green Deal

Forestry export is one of Indonesia’s strongest industries embraced in economic diplomacy or the international trade negotiation. FLEGT VPA that is conducted between Indonesia and European Union gave a fresh head start for Indonesia’s forestry exports, however it also exposed Indonesia into new challenges amid the Indonesia-EU CEPA negotiation with the EU Green Deal happening. Therefore, Indonesia needs to scrutinize every dimension that might obstruct national export development in the post-pandemic era and to keep the demands flowing for the forest industries. This article is aimed to discuss on how FLEGT VPA impacts Indonesia’s forest timber exports after the signing of Permendag 74/2020. This article also discussed the context on how Indonesia through FLEGT VPA can face against the EU Green Deal in forestry export. This article is researched using document-based research of literature studies and supporting data. This research concludes that FLEGT VPA through Permendag 74/2020 is adopted as part of Indonesia’s trade development and recovery efforts in post Covid-19 pandemic and to adopts the Timber Legal Verification System. FLEGT VPA has also impacts the forestry small and medium exporters because of the increased production cost as the result of the timber bureaucracy that was set by the government. This article resulted that FLEGT VPA however imposed challenges but at the same time developing its market capabilites and export to create a positive image for the sustainable timber industry. Amid the increased green politics in European Union affecs intra ASEAN hence committed for all member states in starting through possible foreign trade and economic cooperation scheme.