Negotiation Of Trade Agreements Research Articles

Ecuador and Panama’s negotiation of free trade agreements with China

In recent years, the Latin American region has suffered profound impacts because of systemic transformations such as the weak global economy, the Covid-19 pandemic, the trade war between China and the United States and even the emergence of new conflicts. This scenario implies challenges, especially for small countries in the region, such as Panama and Ecuador, which have implemented trade coordination strategies with the People’s Republic of China through free trade agreements. However, these strategies are also seen as containment mechanisms in the face of the scenario of crisis and uncertainty that characterizes the international system. The article analytically reflects on the FTA negotiation process by Panama and Ecuador with China, instruments that are part of the Commercial Diplomacy strategy as an exclusive format of negotiation and relationship with various strategic partners. The article argues that, given the vulnerability of small countries regarding recent global transformations, they have decided to implement adaptive and containment strategies with China on the commercial agenda.

Explaining the politicization of EU trade agreement negotiations over the past 30 years

Explaining the politicization of EU trade agreement negotiations over the past 30 years

Assessing the Efficiency and Potential of China’s Apple Exports

This study elucidates the factors impacting China’s apple trade, its efficiency, and opportunities for increased revenue. This study adopts a stochastic frontier gravity model on China’s apple exports data, covering the period from 1997 to 2022 across 38 significant trading partners. The finding demonstrates that the economic growth of China and its trading partners substantially boosts apple export volumes, with a positive correlation between GDP growth and export flows. The research also highlights the deterrent effect of geographical distance on exports and reveals a complex negative relationship between the per capita GDP of importing nations and export efficiency, shedding light on the nuanced nature of trade dynamics. Furthermore, the study finds that the appreciation of China’s currency plays a crucial role in enhancing export efficiency by lowering transaction costs. Meanwhile, increased agricultural land in importing countries presents competitive challenges, impacting export performance negatively. Geographical proximity and infrastructural features, such as shared borders and lack of access to seaport, are identified as significant factors in export efficiency. The analysis unveils considerable untapped export potential in various countries, suggesting a strategic avenue for market expansion. To optimize China’s apple export strategy, policymakers are advised to consider currency management, negotiate trade agreements that mitigate distance and per capita GDP effects, and target markets with high untapped potential, thereby facilitating sustainable growth in China’s apple export sector.

Relatedness and product complexity meet gravity models of international trade

Researchers have long used gravity models to analyze international trade patterns, identify export opportunities, and negotiate trade agreements. Recent research has emphasized the significance of relatedness and product complexity research in developing robust economic development strategies. This paper presents a novel approach, incorporating relatedness and product complexity as integral elements for interpreting export potential within gravity models powered by machine learning. Our approach stands out for its proficiency in accurately predicting bilateral trade values at a detailed product group level, providing valuable insights for policymakers and other stakeholders. The research leverages random forest machine learning models for predictions and incorporates relatedness and complexity to reveal new dimensions in international trade analysis.

Reserving the right to say no? Equilibria around hard trade‐sustainability commitments in power‐asymmetric contexts

AbstractWhen will stringent sustainability commitments (not) be a stumbling block in the negotiation of trade agreements? Although the existing literature has explored the determinants of the design of sustainability provisions in trade agreements, few works have explored when countries will accept/reject those provisions once their content cannot be changed. Based on insights from game theory, we flesh out the conditions under which there will be an equilibrium in favor of hard sustainability provisions in trade deals. We then present empirical illustrations related to Mexico's participation in the United States–Mexico–Canada Agreement (USMCA) and Brazil's participation in the EU‐Mercosur trade negotiations. Our model shows that (1) fears of partner opportunism, (2) the costs of nonparticipation in trade deals, and (3) costs of adjustments to hard trade‐sustainability commitments are key to understanding whether a compromise can arise on trade and strong sustainability commitments. The model highlights what sorts of concessions ought to be made for negotiations to prosper. The findings point to how the changing structure of trade governance may affect the decision‐making process of Global South countries. The paper concludes with recommendations and avenues for further research.

Overview of Regulations on Cross Border Data Flow

The high importance and immense power of data, coupled with a lack of consensus on the definition of this term, have led to multiple challenges in this field. Data protection legislation can be traced back to the Enlightenment era, which explains why the EU has always regarded personal data protection as a fundamental human right. As the third generation of personal information protection legislation, GDPR not only expands the extraterritorial application effectiveness, but also strengthens the administrative sanctions function of DPA. The EU has considered commitments regarding cross-border data flows in recent trade agreement negotiations, indicating a trend towards repositioning its considerations between data protection and trade interests. The primary issue facing the regulation of cross-border data flow under the WTO framework is to clarify the applicability of GATS commitments to digital trade and cross-border data flow. At the FTA level, few trade agreements explicitly address the issue of data localization requirements. For the first time, CPTPP sought to explicitly restrict the use of data localization measures, with the exception of "legitimate public policy objectives", and this template was subsequently followed by FTA. In response to the regulation of cross-border data flow in China, scholars have put forward their own opinions from different perspectives, from the objects of learning and reference to specific suggestions.

Post-Brexit trade policy in the UK: placebo policy-making?

ABSTRACT Trade policy and negotiations have lain at the heart of the Brexit process. Initial UK trade policy has been characterised by: (1) the need to limit the impact of changes in trading relations (mainly with the EU) to minimise challenges for businesses and the possibility of economic losses; (2) a strong ideological commitment to free trade, and related to that; (3) symbolic and ‘placebo’ actions designed to show that the UK can enact an independent trade policy. Negotiation of free trade agreements (FTAs), thus, became a priority of trade policy. This article explores how approaches to FTAs have evolved, focusing specifically on post-Brexit FTAs with Australasia. Overall, the desire to complete speedy agreements has at times trumped business and societal interests, and precluded the development of a coherent long-term UK FTA vision, revealing the symbolic motivation of being seen as ‘delivering Brexit’ behind the initial years of post-Brexit trade policy.

How to Study Global Lawmaking: Lessons from Intellectual Property Rights and International Health Emergencies

International agreements on Intellectual Property (IP) have proven to be a good example to study global lawmaking. Beginning by looking at the 1990s Trade-Related Intellectual Property Rights (TRIPS) agreement and into the negotiation and implementation of regional and national trade agreements, this article reflects on the intricate relationship between international IP agreements and public health. The comprehensive analysis of these international rules and their effect provides valuable insights into the dynamic interplay between domestic and international factors in shaping health policies. Building upon the IP case, we categorize existing scholarship on global lawmaking into three methodological approaches: ( a) methodological internationalism, ( b) methodological nationalism, and ( c) the interplay between domestic and international factors. We close with a call for researchers to advocate and integrate into their methods a co-constitutive approach that considers the simultaneous shaping of domestic and international elements.

The political economy of the African Continental Free Trade Area and structural transformation in Africa

ABSTRACTThe post-colonial economy of African countries has continued to manifest all the characteristics of its colonial origins in terms of its structure, direction, and composition. Export of primary commodities continue to take precedence over exports of manufactured products. The African Continental Free Trade Area emerged after series of negotiations to address the problem of structural transformation through value added production, services and increased agglomeration in African economies. This paper examines the extent to which the AfCFTA can foster structural transformation and socio-economic development in Africa. The paper found that despite the challenges that may affect the implementation of the agreement, AfCFTA holds great potentials for the realisation of the social transformation in Africa through creation of regional value chains, unlocking the opportunities in free movement of factors of production and enhancing a stronger voice for Africa in the negotiation of trade and investment agreements with other regions of the world.

Which Combination of Trade Provisions Promotes Trade in Value‐Added? An Application of Machine Learning to Cross‐Country Data

Over time, the trade agreements are witnessing a substantial change in their provisions by encompassing provisions beyond their conventional trade domain, such as labour market regulations, environmental regulations and competition policies. Theoretically, studies argued the role of signing an agreement with deep provisions to promote trade in value‐added, but empirical verification in favour of a few is rarely available. The present study attempts to identify this set of provisions included in deep trade agreements (DTAs) that positively impact the bilateral trade in value added. Using the traditional gravity model framework and its estimation through modern econometric and machine learning tools, the study shows that incorporating provisions relating to establishing and preserving economic rights in trade agreements promotes trade in value‐added among member countries. Notably, the study found the combination of three main policy areas: technical barriers to trade, competition policy and labour market regulations. Both econometric and machine learning methods confirm the significant impact of these three provisions. Understanding the significance of specific provisions holds relevance in the current scenario where major trading economies are calibrating trade agreements. From the policy perspective, disentangling a set of provisions might be relevant for designing and negotiating trade agreements.

The EU’S Trade Polıcy and It’s Reflectıons to The Türkiye

The European Union (EU) has an power through trade and this situation increasing gradually. EU uses market access as a bargaining chip to obtain changes in the domestic arena of its trading partners, from labor standards to development policies. Indeed, one of the central objectives of EU trade policy has been to “harness globalization” and spread, through the negotiation of trade agreements, the European model of society to the rest of the world. The EU has been a staunch promoter of regionalism and multilateralism. Regional integration and interregionalism are consistently mentioned as instruments and objectives in EU policy documents and they constitute a standard practice in EU foreign policy.
 
 This paper aims to show how the EU use trade policy as a foreign policy tool. Main characters of EU’s foreign trade policy, and some documents that giving EU’s policy directions and priorities have been evaluated. EU’s trade policy dimensions has been searched.
 At the accession process with the EU, Turkey’s adoption and harmonisation to this policy area is very important and contain some difficulties. In the light of this research and evaluation, it has been seen that the EU strongly and intensly uses trade policy as a foreign policy tool. EU’s trade policy is not only trade policy. Turkey and similar countries at the accession process have been forced this multifaced policy and they have been faced difficulties. For this end, they need following and organise their policies.

The impact of Russia’s war against Ukraine on Sino-European relations

ABSTRACT This paper analyses the development of Sino-European relations following Russia’s attack on Ukraine. I argue that the behaviour of European and Chinese leaders is driven by the availability and attractiveness of outside options. While both sides want to reduce their dependence on the other, neither actor seeks a radical decoupling. Measures to diversify supply chains, the negotiation of new trade agreements around the world, and the ‘technology war’ have made Beijing’s outside options less favourable. Europeans are emboldened to articulate their interests more forcefully, particularly in the areas of human rights, scrutiny of foreign funding, and economic coercion. China, in turn, provides diplomatic cover for Russia but resists undermining Western sanctions.

Gender Mainstreaming in Kenya’s Trade Agreements: The Africa Continental Free Trade Area

Purpose: The aim of this paper is to investigate whether the Treaty establishing the African Continental Free Trade Area (AfCFTA) Agreement is gender mainstreamed. Specifically, the study investigates how gender related issues are represented in the Agreements establishing the AfCFTA; analyses whether the Agreement establishing the AfCFTA commits to addressing the challenges that women face in participating in employment and trade; describes the contexts in which gender issues are mentioned in the Agreement; investigates whether the Agreement perpetuates gender inequality, is accommodative of gender issues without addressing inequality, or is gender transformative.
 Methodology: The paper uses textual analysis to check whether gender related words are used in the text and in what context. The paper also checks whether there is commitment to meeting gender related commitments and uses the Fletcher (2015) gender equality continuum as a conceptual framework to classify the Agreement as exploitative, accommodative or transformative. 
 Findings: The analysis finds that although there is an attempt to use gender related words, there is lack of commitment in the Agreement to implement these commitments. The intended inclusion of the Protocol on Women and Youth in Trade in the Agreement is expected gender mainstream the Agreement.
 Unique Contribution to Theory, Policy and Practice: The paper contributes to policy and practice on the negotiation and drafting of trade agreements not only by the Kenyan government but also by other African countries. That trade agreements should be negotiated and drafted with the intention of making effective implementation possible. Gender issues should not only be explicitly included in the trade agreements, but they should also be implemented and evaluated for their effectiveness.

An Analysis of India's Revealed Comparative Advantage in Merchandise Trade with Australia

India's export sector has considerably improved since 1991 economic and trade reforms. It has gained momentum after the signing of various trade agreements with several countries. India and Australia started free trade agreement (FTA) negotiations over a decade ago in 2011 and finally concluded a landmark Economic Cooperation and Trade Agreement (ECTA) on 2nd April 2022. This study examines India's trade relations with Australia using the revealed comparative advantage (RCA) index and trade intensity index (TII) for exports and imports, to determine the patterns of exports and areas of specialisation of the two countries. The findings suggest that the bilateral trade between India and Australia has not strengthened. However, India enjoys a comparative advantage in several product groups, which fall into the category of primary goods, low-technology manufacturers, and manufactured goods as well. Overall, the RCA is much higher for India's exports than that for Australia's exports to India. The study finds that India has trade potential in several product groups with Australia and efforts should be made to bring greater benefits from the trade agreement for both countries in the years to come.

Public Support: A Missing Variable in the Trade Policy Equation

As Canada considers launching free trade agreement (FTA) negotiations with Ecuador, the government wants to know what Canadians think. Ottawa makes it easy for citizens to weigh in, inviting Canadians to “join the discussion” and submit their “views, reflections and priorities” on the potential FTA through a Global Affairs Canada web page that is clear, inviting, and user-friendly. Under a section titled, “Who should participate?” the first answer given is “individuals.” Although the Biden administration has been clear that it will not seek new FTA negotiations, taking a page from Canada’s public consultation playbook may be instructive, at least when it comes to understanding what Americans really think about trade and trade agreements. The conventional wisdom emanating from Washington is that new trade agreements are political nonstarters. Even trade policy observers who believe that the American public should support trade and trade agreements often claim that “the politics are too difficult.” But whose politics are they talking about?

Negotiating Capital and the EU-Japan Economic Partnership Agreement

The 2019 European Union (EU)-Japan Economic Partnership Agreement is, so far, the EU’s largest bilateral free trade agreement. While the agreement itself is an example of the growing strength of the EU-Japan relationship, it is also an example of how two vastly different trade regimes can overcome entrenched structural and administrative styles to reach a consensus. This paper analyzes one of these barriers: negotiating capital. This concept represents the political economy of how trade negotiators utilize their legal expertise, negotiating flexibility, and limited resources to maximize free trade agreement outcomes. However, trade negotiators have differing amounts of negotiating capital, which depends on their home states’ structural and administrative constraints and how the trade negotiators define and develop their trade expertise. The EU’s and Japan’s contrasting structural and administrative approaches to trade negotiations and how trade experts define and develop their expertise lend a unique opportunity to understand how changes in negotiating capital can alter free trade agreement negotiation outcomes. Ultimately, the EU’s inclusive, quasi-federal structure and the negotiators’ need to consider the limitations on their trade mandate show how their negotiating capital is relatively limited and translates into a more integrated agreement text, i.e., provisions on public opinion. On the other hand, Japan’s top-down reformist trade regime leads to a more reactive strain of negotiating capital relying heavily on adherence to hierarchy and limited inclusiveness, resulting in agreement commitments that are generally weak and narrow. Negotiating capital is an important reality that all trade negotiators face. It is politically and strategically important for parties to understand how these various factors’ political economy impacts free-trade negotiations and outcomes.
 Received: 10 May 2022Accepted: 18 July 2022

Incorporating sustainability as a cross‐cutting vector in the design of public policies

AbstractSpain is committed to incorporating sustainability as a cross‐cutting vector in the design of public policies. In the area of trade policy and public financial support for internationalization, this is reflected in the Spanish's support for the inclusion of sustainability in the negotiation of all trade agreements and in the adaptation of our financial instruments to support internationalization to the objectives of ecological transition and the fight against climate change. In conclusion, it is imperative that green transition and sustainability inform the actions of public authorities horizontally. Only in this way will we be able to achieve the ambitious objectives proposed and make the transition to a truly sustainable economic system. The design and negotiation of trade agreements or the adequacy of public financing instruments are just two examples, but fundamental ones, where this approach is required.

THE LONG-DRAWN-OUT FREE TRADE AGREEMENT NEGOTIATIONS BETWEEN THE EUROPEAN UNION AND INDIA: A TWO-LEVEL GAME ANALYSIS

This article examines the arduous free trade agreement negotiations between the European Union and India. The talks, which started in 2006 and were suspended for a while, could not lead to an agreement in more than 15 years. By employing the two-level game theory, developed by Robert Putnam, this article attempts to explore the role of the domestic realm on the extension of the negotiations. Therefore, it investigates the win-sets of the negotiating parties, by focusing on the domestic factors such as interest groups, political structure and political culture in order to determine which of these factors make it difficult to find common ground. On the basis of the said analysis regarding the free trade agreement negotiations between the European Union and India, this article further aims at finding out why trade negotiations pursued by the European Union usually require a long period of time.

The European Parliament and Civil Society in EU Trade Negotiations: The Untold Story of an Erratic Engagement

The article calls into question the picture that is often uncritically depicted around the European Parliament (EP) and civil society as newly empowered actors and consistent advocates of citizens’ interests in EU trade negotiations. The contribution of the article is twofold. First, it provides a comparative and empirical account of the mobilization of the EP and civil society across the negotiations of the new generation EU trade agreements. It shows that a common thread has been an erratic engagement, along the lines of politicization: the EP has only been vocal in response to civil society mobilization; and civil society mobilization in turn has been inconsistent, even though some contested issues were common to all trade negotiations. Second, the article sheds light on improvements in democratic treaty-making practices that emerged as a result of the mobilization of the EP and civil society. While drawing some lessons on EU trade law-making going forward, the article calls for a more modest appraisal of the legacy of these newly emerged democratic practices. EU trade negotiations, international treaty-making, European Parliament, civil society, mobilization, CETA, TTIP, EU-Singapore FTA, EU-Japan EPA

Sub-Federal Deliberative Exclusions and Free Trade: Mexico’s Centralized Federalism and Weak Institutional Capacities

This article explores the relationship between trade and sub-federal deliberative exclusions in the case of Mexico. Mexican centralized federalism explains the absence of sub-federal governments (SFGs) in the negotiations of free trade agreements, even if they are responsible for dealing with trade outcomes at the local level. This article argues that sub-federal deliberative exclusions are not only evident under the federal allocation of powers but also by their limited institutional capacities (restrictions in budgets and personnel, lack of professionalization, and absence of inter-institutional coordination). This is the case of NAFTA, the USMCA, and the Mexico-European Union Free Agreement in its original and recently renegotiated versions. Despite constraints by federalism and institutional limitations, SFGs engage in trade and investment promotion through inter-institutional agreements (IIAs) allowed by secondary legislation.