Multilateral Trade Agreements Research Articles

동아시아 지역질서에서 CPTPP의 동향과 대응

Economic growth in major East Asian countries is increasing confidence in their geological potential. CPTPP membership requires a strategic approach to predict not only economic effects but also political and diplomatic ripple effects in the competition to lead the order of the Indo-Pacific region and the norms of new multilateral trade agreements. This study aims to analyze the trends of the economic community in East Asia, which is forming a multilateral trade system amid further spread of protectionism and strengthening regionalism due to the competitive trade environment between the U.S. and China, and present Korea's CPTPP response strategy. Korea needs a thorough strategy to join CCTPP considering the strengthening of the concept of 'security' in the Asia-Pacific region's multi-layered regional trade register, the competition of major countries to become norms in the new economic community at the GVC level, and the possibility of changes in CCTPP due to the emergence of IPEF.

THE APPLICABLE LAW STATUS OF INTERNATIONAL STANDARDS IN WTO ADJUDICATION WITHIN THE CONTEXT OF TECHNICAL REGULATIONS IN INTERNATIONAL TRADE

Devletler arası ticareti en üst düzeyde ele alan DTÖ hukuku esasen çok taraflı ve çoklu ticaret antlaşmalarından ve bu antlaşmalara dayanarak DTÖ bünyesinde geliştirilen kurallardan oluşmaktadır. DTÖ antlaşmaları DTÖ dışında oluşturulan bazı kuralları da DTÖ hukukuna entegre etmektedir. DTÖ’yü kuran Marrakesh Antlaşması eki çok taraflı antlaşmalardan olan Ticarette Teknik Engeller (TTE) Antlaşması’nın, uluslararası ticaretteki teknik engellerin ortadan kaldırılmasında ve üye devletlerin ulusal tedbirlerinin ticarette gereksiz engeller oluşturmasının önlenmesinde benimsediği yöntemlerden birisi harmonizasyondur. Antlaşma, harmonizasyonun bir aracı olan uluslararası standartları DTÖ hak ve yükümlülüklerinin parçası haline getirmektedir. Bu bağlamda, meşru amaçların gerçekleştirilmesine yönelik alınacak ulusal tedbirlerin hazırlanmasında ilgili uluslararası standartların temel olarak kullanılmasını zorunlu kılınmaktadır. Ayrıca, uluslararası standartlara uygun olan ulusal teknik düzenlemelerin uluslararası ticarette gereksiz engel yaratmadığına dair bir karine sağlanmaktadır. Bu karine, bir DTÖ uyuşmazlığında ispat yükünü etkilemektedir. Teknik engellere dair uyuşmazlıkları uzun zaman GATT’ın genel hükümlerine göre çözmeyi tercih eden DTÖ yargısı son on yılda bu tür davalarda TTE Antlaşması hükümlerini uygulamaya başlamıştır. Ancak hâlâ hukuki analiz bekleyen bazı hususlar bulunmaktadır.

The Special and Differential Treatment Provisions in the Trade Facilitation Agreement: New Teeth for an Old Gum?

Various provisions on special and differential treatment of developing countries have been enacted from the time of the General Agreement on Tariffs and Trade 1947 (GATT 1947) through to the current era of the World Trade Organisation (WTO). Perhaps the most significant epoch in the recognition of the special and differential treatment of developing countries in the international trade regime was the 1979 Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries, more popularly known as the Enabling Clause. The Enabling Clause, inter alia, allowed for a permanent derogation from the most favoured nation provision in Article I of the GATT 1947 in order to enable developed countries grant preferential treatment to goods coming from developing countries. The advent of the WTO in 1995 also came with specific provisions in the multilateral trade agreements that catered for the special needs of developing countries. Developing countries have, however, raised concerns regarding the effectiveness and utility of most of the special and differential treatment provisions considering the fact that most of these provisions have been formulated in non-mandatory language and thus do not obligate compliance. This article considers the special and differential treatment of developing countries in WTO law and analyses similar provisions in the most recent multilateral trade agreement in the WTO - the Trade Facilitation Agreement - which came into effect on 22 February 2017. The article aims to ascertain the effectiveness of special and differential treatment provisions in the Trade Facilitation Agreement with respect to addressing long-standing concerns of developing countries.

신기후체제하에서 파리협정과 무역협정과의 조화방안에 대한 연구

Unlike the UNFCCC and the Kyoto Protocol, the Paris Agreement does not contain provisions specifying how climate policy and trade rules relate to each other. For harmonious interaction between trade agreements and climate agreements, the following harmonization measures are presented. First, the WTO legal reform is to develop an authoritative interpretation of Articles 20(b), (g) and Chapeau of the GATT, despite the lack of political support. Second, the dispute settlement system according to the WTO can further support the implementation of the Paris Agreement. Third, the negotiation of RTAs is a promising way to introduce and test new rules on climate and trade. Fourth, the adoption of climate-related multilateral trade agreements in Annex 4 of the WTO Agreement provides the WTO options for setting rules for trade and climate policy. Fifth, the WTO and UNFCCC organizations can increase transparency and accountability.

Non-Tariff Barriers Challenge on Formation of Multilateral Trade Policy during the Covid-19 Crisis in the East African Trade Region

COVID-19 disrupted trade worldwide, causing supply and demand chain disruptions. As a result, trade volume dropped dramatically in the first half of 2020, forcing countries to implement new policies to defend their economies. The study revealed new Non-tariff barriers caused by COVID-19 into the East African region that prevented cooperation and effective negotiations. Without this consensus, the trade will not be able to flow freely. Trade negotiations aim to achieve the mutual reduction of barriers to trade among countries to lead to improved access to markets and stimulate economic growth. The study used inductive reasoning and an empiricist approach using a constructivist ontology to explain challenges informing multilateral trade policies during the Covid-19 crisis in Africa. The research adopted Chatham house rules to encourage participation and discussion. The study examined the challenges faced by policymakers in implementing old and new policies during the COVID-19 period and evaluated the East African countries' capacity to adopt multilateral trade policies, multilateral trade agreements, and multilateral cooperation within regional trade agreements, despite East Africa mechanisms, including the East African Community Elimination of Non-Tariff Barriers Act, 2017. NTB elimination mechanisms have proven ineffective, owing primarily to member country's political and nationalistic policies. NTBs can be effectively eliminated through legally binding systems, such as the COMESA taxing protocol, but all these measures are dependent on member states' cooperation. NTBs are complex and recurring in nature; there is a need for further research into the implementation and complexities of NTBs.

Not Just Sea Turtles, Let’s Protect Women Too: Invoking Public Morality Exception or Negotiating a New Gender Exception in Trade Agreements?

Abstract The most common provisions we find in almost all multilateral, regional and bilateral trade agreements are the exception clauses that allow countries to protect public morals, humans, animals or plant health and life and conserve exhaustible natural resources. If countries can allow trade-restrictive measures that aim to protect these non-economic interests, is it possible to negotiate a specific exception to justify measures that are aimed at protecting women’s economic interests as well? Is the removal of barriers that impede women’s participation in trade any less important than the conservation of exhaustible natural resources such as sea turtles or dolphins? In that context, this article prepares a case for the inclusion of a specific exception that can allow countries to leverage women’s economic empowerment through international trade agreements. This is done after carrying out an objective assessment of whether a respondent could seek protection under the existing public morality exception to justify a measure that is taken to protect women’s economic interests.

The impact of regional trade agreements on the quality of export products in China’s manufacturing industry

In recent years, under the risks of anti-globalization trend and uncertainty of trade war, countries have been entering into bilateral and multilateral regional trade agreements (RTAs). This study constructs both theoretical and empirical models to examine whether these RTAs can improve the quality of exported products among Chinese manufacturing enterprises, thereby expanding on a new policy research area that focuses on improving Chinese export quality or import quality of RTAs trade partners from China. The study finds that RTAs’ clause quantity (measured by clause coverage rate) and clause quality (measured by law commitment rate) play different roles. The former can generate “spaghetti bowl” effect but the latter can significantly promote export quality for Chinese manufacturers. The study also finds that RTAs can promote balanced development among the various regions in China and that a new generation of binding clauses in the “WTO-X field” with more new clauses strongly affects efforts to improve the quality of products exported to high and upper-middle income markets. We also find that for most industries, signing high-quality RTAs helps to improve export product quality, but there are no effect for some industries with laggard or special advanced technology.

UNDERSTANDING GDPR: ITS LEGAL IMPLICATIONS AND RELEVANCE TO SOUTH ASIAN PRIVACY REGIMES

Emerging as a buzzword, the General Data Protection Regulation (GDPR) has had immense implications on global data protection regimes. The GDPR appears as a worldwide standard for protecting personal data based on the omnibus legal substance, extensive extraterritorial scope, and influential market of the European Union (EU). It resulted in a global wave where countries are either adopting new legislation or modifying existing data privacy laws to comply with the GDPR. Historically, the South Asian region, abode to one-fifth of the world’s people, has strong trade and economic ties with Europe. As reflected in current bilateral or multilateral trade agreements, the EU tends to be one of the largest trading partners of most South Asian countries. Therefore, it is understandable that the EU’s norms, laws, policies, particularly the GDPR, would have far-reaching impacts on South Asian countries. However, the issue has not been yet evaluated in legal academic settings that require an analysis of GDPR’s overview and its impacts on South Asian privacy regimes. The findings of this doctrinal legal study, together with the sharing of a brief overview of the GDPR and South Asian privacy regimes, reiterate the influence of GDPR in this region. The findings of this research also have the prospects to enlighten the stakeholders in understanding the GDPR and its implications on global as well as South Asian privacy regimes. This article concludes with several suggestions and policy alternatives that policymakers can explore in South Asia and beyond in designing their potential personal data protection policy strategies.

PROSPECTS OF REGIONAL ECONOMIC INTEGRATION FOR ARTSAKH CONSIDERING THE OPPORTUNITIES PROVIDED TO ARMENIA

After joining the World Trade Organization (WTO) in 2003, Armenia further opened its market for trade, which, however, is still limited by high transport costs due to the country's geographical location and partially closed borders. Trade of goods passes mainly through the territory of Georgia. In 2015, Armenia joined the Eurasian Economic Union (EEU), which provides member countries with unhindered access to the Armenian, Russian, Belarusian, Kazakh and Kyrgyz markets. Since June 2018, the country has signed a number of bilateral and multilateral trade agreements, including with Georgia and Japan, as well as the Comprehensive and Enhanced Partnership Agreement with the United States and the EU (EU, 2020). For a small country, the volume of exports and imports of goods and services is large, accounting for 91.3 percent of GDP in 2018 (World Bank, 2020c), and exports of goods and services accounted for 38.5 percent of GDP.

Would an India-US trade agreement be beneficial for India?

This paper examines the potential impact of an India-U.S. FTA on India’s trade. We use two approaches to estimate trade effects, compound annual growth analysis and Gravity model estimation. Our sample spans the period from 1992 to 2019 and consists of seven bilateral trade agreements and three multilateral trade agreements which include 24 countries as our treatment group. In both cases we compare the impact on India’s trade following a trade agreement with a control group which we create by including those countries whose trade share exceeds one percent of India’s total trade (in 2019). Our CAGR analysis shows that trade (after an agreement) with the treatment group outperforms the control group although the results are not symmetric for imports and exports. The Gravity estimation confirms the results. We find that participation in a trade agreement is associated with a 42 percent jump in imports compared with a 28 percent increase in exports. The results show that following a trade agreement with the U.S., India is likely to experience a worsening trade balance. However, increased exports, especially manufacturing exports, to the U.S. is likely to benefit the Indian economy. Thus, an India-U.S. trade agreement may be beneficial to India.

The Farsighted Stability of Global Trade Policy Arrangements

In this paper, we study and compare the stability of trade policy arrangements in two different regulatory scenarios, one with and one without Preferential Trade Agreements (PTAs), i.e. current vs. modified WTO rules. Unlike the existing literature, our paper considers an extensive choice set of trade constellations, containing both available PTAs, Customs Unions (CUs) and Free Trade Agreements (FTAs), as well as Multilateral Trade Agreements (MTAs), while assuming unlimited farsightedness of the negotiating parties. With symmetric countries and under both the current and the modified WTO rules, the Global Free Trade (GFT) regime emerges as the unique stable outcome. In the case of asymmetry, the results are driven by the relative size of the countries. If the world is in the vicinity of symmetry and two out of three countries are close to identical while relatively smaller than the other one, the area where the GFT regime is stable increases when prohibiting PTAs. However, when two similar countries are relatively larger, the availability of PTAs is conducive to the stability of the GFT regime. Finally, if the world is further away from symmetry, full trade liberalization is not attainable at all and an area where the Most-Favoured-Nation (MFN) regime is stable appears in the scenario without PTAs. Thus, the direction of the effect of PTAs on trade liberalization depends on the degree of asymmetry among countries.

What Changes Should be Made by China under Article 20.16 of CPTPP

For the first time, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) presents the series of environmental provisions as a separate chapter in a multilateral economic and trade agreement. This chapter deals with specific areas of environmental protection. Article 20.16 of the CPTPP is about marine capture. This article contains requirements for fisheries management systems of the contracting Parties, restrictions on illegal, unreported and unregulated Fishing (IUU fishing), and prohibitions and modifications of fishery subsidies granted by the contracting Parties. China is the largest fishing nation in the world, so Article 20.16 of the CPTPP will have a significant impact on China if China successfully joins the CPTPP after its application in September 2021. The issue of legal convergence is particularly important currently. WTO has passed the Agreement on Fisheries Subsidies, reaching an agreement on the issues such as the identification of IUU fishing and fishery subsidies based on Special and Differential Treatment. However, there are still several additional provisions waited to be negotiated, which China needs to keep working hard on.[1] In addition, although China has relatively domestic legislation in this area and has actively signed and participated in relevant international documents, it still lacks legal provisions on fishery subsidies and has not signed The Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels (Compliance Agreement). All of these will limit China's voice and basis for environmental provisions in bilateral free trade agreement negotiations. China should clarify the relevant concepts, improve its domestic legislation, accelerate its accession to relevant international documents and treaties, and upgrade its bilateral investment agreements in a timely manner.

International Contestability of Markets and the Visible Hand. Trade Regulation of State-Owned Enterprises and between Multilateral Impasse and New Free Trade Agreements

International Contestability of Markets and the Visible Hand. Trade Regulation of State-Owned Enterprises and between Multilateral Impasse and New Free Trade Agreements

Protection of the Marine Environment

Abstract The general obligation to protect and preserve the marine environment is contained in the United Nations Convention on the Law of the Sea (UNCLOS). Increasingly, marine issues are addressed in regional or multilateral trade agreements, including the covered agreements of the World Trade Organization (WTO). This article examines selected legal developments, such as provisions in regional trade agreements on marine capture fisheries, marine litter and waste management infrastructure. Rules on the use of trade measures to eliminate harmful fishing practices, and the prohibition of certain subsidies, are also explored. The article calls for attention to the impact of these developments on dispute settlement between states under UNCLOS, support for marine protected areas, and the capacity for regime interaction between relevant bodies. These issues have relevance for the conservation of marine living resources as well as other issues relating to the protection of the marine environment, including marine plastics and climate change.

THE IMPACT OF THE OUTWARD AND INWARD FDI ON GLOBAL VALUE CHAINS

What kind of trade agreements should a country choose? Regional trade agreements, multilateral trade agreements, or both? What's the role of a country's outward foreign direct investment (OFDI) and foreign direct investment (FDI) in its participation and position in global value chains (GVCs)? Is a country's research and development spending conducive to breaking the "low-end locking" of FDI? Based on the World Input-Output Tables (WIOTs) released in 2016, this paper computes the indicators of GVC participation and position and identifies the feature of the production division, providing a reference for promoting regional and multilateral trade agreements. This paper uses feasible generalized least squares (FGLS) and system generalized method of moments (SYS-GMM) to examine the impact of a country's outward and inward FDI on its GVC participation and position. The empirical results imply that a country's OFDI promotes its GVC participation and fosters its upgrading within industries in GVCs, while FDI inhibits the upgrading of GVCs, though it promotes a country's GVC participation. In addition, a country's research and development spending can be conducive to breaking the "low-end locking" effect of FDI.Keywords: Outward Foreign Direct Investment, Inward Foreign Direct Investment, Global Value Chains, World Input-Output Tables, Feasible Generalized Least SquaresJEL Classifications: C33, F21DOI: https://doi.org/10.32479/ijefi.11950

International Trade and Economic Misery in African Countries with Low Human Development

Puzzled by the demeaning level of poverty most African countries continue to grapple with despite their extensive participation in international trade, the study attempts to examine the encumbrances that tend to impede African countries from optimally reaping the developmental gains inherent in partaking in international trade, which seems to also worsen the economic misery the inhabitants endlessly contend with. The System Generalized Method of Moments (System-GMM) estimation technique was used in the study which involves 17 African countries and spans from 1995 - 2018. While misery index is used to measure economic misery, the impact of international trade on economic misery is captured by means of its effect via economic misery, economic growth rate, balance of payment, total export, manufacture export and exchange rate. The results of the study reveal that balance of payments, total export, manufacture export, per capita GDP growth rate, exchange rate and lagged form of economic misery all have positive effect on economic misery. While the effects of total export, manufacture export, per capita GDP growth rate, and exchange rate on economic misery are significant, those of balance of payments and lagged form of economic misery are insignificant. While the study recommends that international trade be engaged strategically such that it results in favourable balance of payments, it also encourages the discarding of obsolete trade policies such as outright bans on importation of certain commodities. Bilateral trade agreements are recommended over multilateral trade agreements, since they are more mutually beneficial and binding on the parties involved

Was India Right in Not Joining RCEP? A Cost–Benefit Analysis

India dropped out of the Regional Comprehensive Economic Partnership (RCEP)—which included the Association of Southeast Asian Nations (ASEAN) countries, China, South Korea, New Zealand, Japan and Australia—after negotiating for almost seven years in November 2018 on the grounds of national interest and also that free trade agreements (FTAs) did not amount to free trade and led to more trade diversion than trade creation. The cost and benefit of a regional agreement depend on the amount of trade creation with respect to trade diversion (Panagriya, 2000). This study tries to examine India’s concerns and, at the same time, highlights the cost of not joining RCEP. India’s trade deficit with 11 out of the 15 RCEP nations has been a major cause of concern. Unfavourable trade balance, concerns about the impact on dairy sector, economic slowdown, past experience with FTA’s, China factor, data localisation, rules of origin and the experience of ASEAN countries with Sino-FTA have been some of the reasons behind India’s decision to opt out of this mega multilateral agreement. Also, bilateral trade agreements with some RCEP countries such as Japan, Malaysia, Singapore, Thailand and South Korea were operational. A multilateral trade agreement with ASEAN countries was very much in place. So, trade between India and 12 of the RCEP member countries would not have changed much after India’s inclusion in the RCEP. The impact of lower tariffs would have been evident for the remaining three countries: China, Australia and New Zealand. Furthermore, there was fear of a massive surge in imports of manufactures from China and dairy imports from Australia and New Zealand. This study also examines the long-term impact of this decision and if India has missed out on becoming a part of the global value chain and gaining greater market access in the Asia-Pacific region. India’s policy of import substitution and protectionism did not capitulate desired results in the past. Hence, a critical evaluation of India’s decision and some validation on her concerns and fears have been done.

Way of Authoritarian Regional Hegemon? Formation of the RCEP From the Perspective of China

How has China contributed toward the conclusion of the Regional Comprehensive Economic Partnership (RCEP)? The extant literature tends to either undervalue China’s role or emphasizes the absence of China’s willingness to realize the RCEP. However, it is difficult to form region-wide multilateral preferential trade agreements (PTAs), such as RCEP, without any significant contribution from a regional hegemon, such as China. This paper, thus, argues that China has contributed significantly toward the conclusion of RCEP by engendering incentives for member countries to join through multiple cooperative structures. These cooperative structures involve China-led bilateral PTAs and international development forums, which include the Belt and Road Initiative and Asian Infrastructure Investment Bank. With the gradual shift from bilateral to multilateral PTAs and forum-linkage strategies, China turned to be more assertive in concluding the RCEP than in the early years of RCEP negotiations, as evidenced by the discourse of political and opinion leaders.

Rapid adaptive modelling for policy support towards achieving Sustainable Development Goals: Brexit and the livestock sector in Wales

Sustainable use of land is central to achieving the United Nations Sustainable Development Goals (SDG). However, implementation of policy targeting SDG delivery can be driven off track by external factors. There is a pressing need for rapid, adaptable modelling approaches to support policy development against a background of dynamic changes in environmental and political conditions. An example is the imminent departure of the UK from the EU (Brexit), which requires responsive inputs of robust evidence to inform decision making. We combine existing agri-economic modelling with well-tested environmental models, driven by farm survey and landscape data in an adaptive, participatory approach to assess potential agricultural sector responses to Brexit. We explore potential Brexit impacts on land use, environmental outcomes and agricultural jobs in Wales, UK, where agriculture is dominated by animal production on grassland systems. Three potential post-Brexit trade agreements scenarios are considered: EU Deal; No Deal; and Multilateral Free Trade Agreements. For each scenario potential changes in animal numbers in livestock systems in Wales are converted to predicted land use change at field and farm scale and combined with national data sources and models to explore consequences for the environment and jobs. Potential changes in grazing animal numbers range between − 30% (sheep for No Deal and MFTA) and + 53% (No Deal dairy), affecting 3% (EU Deal) to 17% (No Deal) of agricultural land and creating potential losses of 700 (EU Deal) to 7000 (MFTA) full time jobs. Environmental outcomes are mixed, with reductions in greenhouse gas emissions (− 1% EU deal to − 16% MFTA) and variable impacts on pollutant loads to water (N ranges + 3% for No Deal to − 14% for MFTA) across all scenarios. Air pollution is most scenario dependent (+ 11% No Deal to − 12% MFTA), and biodiversity showed a mixed response to each scenario. The findings of this study support Welsh government in developing programmes to manage the Brexit transition proactively, mitigating risks to the environment, rural communities and agricultural sector..

Digital trade and the remaking of the North American regional economy

North American Free Trade Agreement (NAFTA) was a cornerstone of the 1990s liberal hegemony established with the rise of multilateral trade agreements. On July 1 st 2020, NAFTA was replaced by a new trade deal: USMCA (United States-Mexico-Canada Agreement). This article argues that through the inclusion of digital trade provisions, USMCA signifies a vision of a regional economic space that differs substantively from NAFTA’s. To make this case, the article examines the digital trade provisions in USMCA, contrasts them with the vision of trade advanced by NAFTA, and evaluates how they create conditions that can transform the North American space-economy.