World Trade Organization Negotiations Research Articles

Integrating Explicit Political Costs into a World Trade Organization Negotiation Simulation

ABSTRACT This paper enriches the existing set of global trade negotiation simulations by incorporating explicit, country-specific domestic political consequences incurred from trade concessions. Several semesters of testing with undergraduate students in the U.S. and master’s students in Argentina demonstrate that the simulation statistically significantly enhances students’ understanding of the role that domestic political pressures play in preventing negotiators from reaching the first-best trade regime. Students learn-by-doing that conflicting country philosophies regarding free trade vary substantially not only between developed and developing countries, but also depending on the geography and key industries of each country. The simulation also provides students with current, realistic economic values for the country and the world from freeing trade. Seventeen country tables provide instructors with tremendous flexibility in structuring the negotiation framework. A complete instructor’s manual with a detailed description of how to use the simulation, all student handouts and an Excel file that automatically calculates point totals is available via e-mail from the corresponding author.

From Developing Country Leader to Flexible Negotiator: New Directions in Brazilian Trade Strategy

AbstractBrazil has changed its negotiation strategy in World Trade Organization (WTO) negotiations. In the first half of the WTO era (1995–), Brazil adopted a strong developing country leadership role as coordinator and spokesperson of the G20 group of developing countries. More recently, however, this group has disappeared from the negotiation scene. This article examines how Brazil has departed from a 2000 status quo and arrived at a more flexible approach, less reliant on the industrialized-developing divide as a structuring principle of its diplomacy. Using WTO negotiation documents, trade delegate interviews, dispute settlement case law, and secondary literature, I outline the contours of new directions in Brazilian trade policy. These include joint legislative initiatives with the EU, a move towards the plurilateral level on non-traditional issues, a greater heterogeneity of dispute settlement targets, and a newly flexible handling of its rights under the WTO's special and differential treatment status. The article contributes to ongoing debates on Brazil's status in international affairs, its reliance on large coalitions, and the maintenance of followership as key directives of its foreign policy, and scholarship that sees Brazil as stuck in a ‘graduation dilemma’.

IMPORTANCE OF OPTIMIZING THE REGULATION OF INTERNATIONAL TRADE AT THE GLOBAL LEVEL

This article aims to discuss potential challenges and advantages developing countries might face by seeking to use World Trade Organization (WTO) negotiations in order to promote their economic growth. The authors analyzed one of the implications of the WTO regulatory system in the framework of global trade liberalization, particularly the Doha Round. The analysis outcomes show the importance and effectiveness of WTO policies towards developing countries and help to formulate the position of such countries in WTO policies and reforms. However, we have to admit that this requires the recognition of benefits by all participants, developed and developing countries, unless it could lead to significant economic cost for all. In order to get a greater beneficial impact or/and minimize potential loss, the authors suggest following multilateral rule-making regulations and carefully conducting a preliminary economic analysis of the country before setting an agreement or dialogue, which will point to differentiation between members and could enhance negotiations or/and avoid risk of failure. The study's theoretical and methodological basis are statistics, analysis, marketing, and management working papers of foreign researchers, regulatory documents, periodical press materials, official legal documentation, and publications relating to the specialized subject area of participation in WTO. The findings of this research might add to the knowledge and understanding of the participation of countries in WTO dispute settlement proceedings and the ability of the WTO system to deal with them.

Assessing fisheries subsidies

Fisheries subsidies can contribute to overfishing and pose a challenge to effective fisheries management. In absence of reliable data on fisheries subsidies worldwide, modeling work quantifying subsidies contributes to a meaningful outcome in the ongoing World Trade Organization negotiations and fulfillment of UN Sustainable Development Goal (SDG) 14.6. We assess whether the methods used in the latest assessment of fisheries subsidies worldwide is applicable when estimating fisheries subsidies in Iceland (Sumaila, et al. 2019). Using Iceland as a case-study, we evaluate the accuracy of the resulting estimate of 162 million USD, total in 2018. These estimates are compared with estimates using official data. Also, a re-evaluation of the amount of fisheries subsidies for fishing access for Icelandic vessels is presented. Findings show that the methods used by Sumaila et al. (2019) overestimate the amount of fisheries subsidies in Iceland. These findings do not invalidate the approach used by Sumaila et al. (2019) to assess fisheries subsidies in general but show the estimates in the study are not a compelling result for Iceland. For a more general validation of the methodology its applicability needs to be tested more widely.

Rights redux: the return of human rights at the WTO

The conventional wisdom is that human rights have long been off the negotiating agenda at the World Trade Organization (WTO). The failed attempt by Northern states to include a ‘social clause’ in WTO rules during the late 1990s and early 2000s is often cited as having foreclosed bringing human rights to bear in multilateral trade negotiations. This article challenges this traditional view, demonstrating that states are mobilizing human rights at the WTO to shape current global trade rulemaking. Moreover, in sharp contrast to the prevailing assumption that developed countries are the primary champions of human rights in the trade regime and developing countries the opponents, I show that developing countries have in fact become key protagonists in marshalling human rights at the WTO. To illustrate these claims, I examine how developing countries mobilize human rights norms, principles and discourse to shape global trade rulemaking in two of the most contentious issues in recent WTO negotiations: The use of public food stockholding for food security purposes and a TRIPS waiver to ensure access to COVID-19 vaccines.

Russia’s WTO membership: Assessing the impact on foreign trade

The paper assesses some of the consequences of Russia’s accession to the World Trade Organization (WTO). Whereas much discussion about its costs and benefits happened during the WTO negotiations and in the first years after the accession, there was little said on the real consequences afterwards. The aim of the research is to assess the degree of fulfillment of the accession expectations after a decade. The research method is the analysis of panel data on the world trade for 2000-2019 (an econometric model based on the gravity model of foreign trade). It has been established that the WTO accession ultimately benefited for Russian foreign trade. However, this effect has been offset by increased political tensions since 2014. The objections to the WTO also turned out to be predominantly justified. The most positive economic consequences of the WTO exist for exporters of low value added goods. The criticism of the WTO participation by machine builders is understandable: although they are among the beneficiaries, the effects on exports and imports are comparable.

Почему многосторонний подход к регулированию аудиовизуальных услуг сдает позиции в ВТО

Trade in audiovisual services is both aimed at economic purposes and impacts social values of host countries. That is why this sphere has traditionally been one of the most difficult issues in the World Trade Organization (WTO) negotiations and an area of opposed approaches of the US and the EU. The author demonstrates that measures related to cultural policy can inherently shape protectionist trade barriers for support of national companies. Rapid development of technology has expanded the possibilities for the transmission and distribution of audio and visual content. At the same time, existing multilateral trade rules as well as applied classification for audiovisual services are becoming increasingly irrelevant. The article concludes that, on the one hand, the growing market for audiovisual services requires more precise rules for its cross-border trade, on the other hand, the trend towards the formation of regional blocks with specific regulations complicates negotiations (or even common understanding) on the rules for trade in audiovisual services under the WTO.

How China lost its wolf pack: the fracturing of the emerging-power alliance at the WTO

Abstract There has been considerable debate about the capacity of emerging powers, such as the BRICS (Brazil, India, China, South Africa), to act as a unified and coherent force in global economic governance. In the case of the World Trade Organization (WTO), strategic cooperation and alliance-building among the emerging powers—specifically Brazil, India and China (BIC)—were essential to counterbalancing the US and other traditional powers and enabling the rising powers to defend their interests. However, as this article shows, the BIC alliance at the WTO has collapsed. The core issue that historically united the emerging powers and provided the foundation for their alliance was ‘special and differential treatment’ (SDT) for developing countries. Yet both Brazil and India have now defected from the alliance, abandoning China. Brazil was the first to defect, switching sides and realigning itself with the US; the change in its alliance calculations reflected shifting economic priorities and a fundamental reorientation of its foreign policy strategy away from its earlier Third Worldism. India then defected when its alliance with China, once an important source of strength in WTO negotiations, instead became a liability. As a result, having lost its key allies at the WTO, China is increasingly isolated in multilateral trade negotiations.

Hambatan Indonesia Dalam Implementasi Agreement On Agriculture (AoA) WTO Pada Masa Pemerintahan Jokowi Tahun 2014-2019

Framework of agricultural trade liberalization in the context of World Trade Organization (WTO) General Agreement set out in the field of Agriculture or the Agreement on Agriculture (AOA). AOA is one of the international treaties that are generated through a series of WTO negotiations in the Uruguay Round of General Agreement on Tariffs and Trade (GATT). Pact is applied simultaneously with the establishment of the WTO on January 1, 1995 which contained 13 parts and 21Articles which is equipped with 5 Annex and an appendix to the Annex 5. The AoA has three main pillars, namely the expansion of market access, domestic support and export subsidies. Through Law No. 7 of 1994, Indonesia has ratified the WTO provisions which obliges WTO member states to adapt the rules contained in Annex WTO. One of them is the rules of the food policy Indonesia through Law No. 7 of 1996 concerning Food and Government Regulation No. 68 of 2002 on Food Security.

Trade Agreements in the Last 20 Years: Retrospect and Prospect for Agriculture

SummaryWe provide an overview of major developments in multi‐ and plurilateral trade agreements over the last twenty years with a focus on the implications for agricultural and food markets. We take stock of what has been accomplished in market integration, remaining obstacles to trade, events that have changed the trade landscape, and emerging issues. Agricultural tariffs have fallen through commitments made in the Uruguay Round Agreement on Agriculture and through the proliferation of regional trade agreements (RTAs). Nevertheless, agricultural trade remains distorted with some extremely high tariffs. RTAs have achieved progress on nontariff measures and other beyond‐the‐border frictions. World Trade Organization (WTO) negotiations on agricultural trade distortions have stalled because of their complexity and divergent political interests among WTO members. In addition, the dispute settlement mechanism no longer functions. The WTO will have to adjust to a world of RTAs and use its tools and procedures to support the multilateral trading system by promoting increased transparency of RTAs and their conformity with existing WTO agreements. The WTO can also use existing tools to head off disputes using specific trade concern mechanisms, such as those implemented through the sanitary and phytosanitary (SPS) and Technical Barriers to Trade (TBT) committees.

Facilitating African Countries’ Participation in the Global Trading System

Africa’s relatively low economic power has meant that it has had low participation in rule-and-decision making at the most important global economic governance fora, except the World Trade Organization (WTO). The consensus nature of most WTO decisions has encouraged African countries to participate actively in that organisation and seek to influence its rules and practice in areas of strategic African political, economic, and social interest. With the support of key technical partners like the Advisory Centre on WTO Law, African Members of the WTO have been able to leave their mark on WTO negotiations, as well as participate in dispute settlement proceedings as main parties and, mainly, third parties. The Advisory Centre on WTO Law (ACWL) has also been actively involved in building the capacity of Africans in WTO law through its flagship Secondment Programme for Trade Lawyers and its sponsorship and support of the John H. Jackson Moot Court Competition. Africa, World Trade Organization, Advisory Centre on WTO Law, capacity building, negotiations, TRIPS and Access to Medicines, DSU Review, dispute settlement, ACWL Secondment Programme for Trade Lawyers, John H. Jackson Moot Competition

Assisting Developing and Least Developed Countries in Legal Aspects of WTO Negotiations: A Case Study of the Fisheries Subsidies Negotiations

The Advisory Centre on WTO Law (ACWL) is an international organization charged with assisting developing countries and least developed countries (LDCs) in all legal aspects arising from the law of the World Trade Organization (WTO). Among its services, the ACWL provides, upon request, legal advice in WTO negotiations. The ACWL does not influence the political position of its Members or the LDCs. Rather, it confines itself to providing legal inputs that would enable its developing country Members and LDCs better to participate in WTO negotiations. In particular, the ACWL assists in drafting proposed legal provisions when a requesting government wishes to propose an idea. In addition, the ACWL conducts legal analyses of proposals tabled by other WTO Members in order to ascertain their potential legal effects were they to become part of the WTO covered agreements. In the context of the fisheries subsidies negotiations, the ACWL has made strides to become familiar with such areas as international law of the sea, fisheries law, and the legal aspects of sustainability and development in order to provide well informed legal advice to its developing country Members and the LDCs. Legal advice on the fisheries subsidies negotiations has, both qualitatively and quantitatively, become an important part of the ACWL’s work. Legal advice, WTO negotiations, fisheries subsidies, fisheries management, treaty interpretation, ACWL, developing countries, least developed countries

The diversification of global agribusiness trade from 2000-2019

Agricultural trade is closely interconnected with a range of food security and development related issues in the case of developing countries. In this regard, diversification of both trade partners and products traded can play an important role in terms of strengthening food security concerning imports, but also as a means to create a more resilient basket of exports. This article analyses the diversification of global agricultural trade from 2000-2019, considering the main players and positions of countries within the World Trade Organization (WTO) negotiations. We scrutinize the trade diversification of the imports and exports of individual countries and groups of countries in terms of both products and markets by assessing the degree of sectorial and geographical concentration of their trade flows in the period from 2000 to 2019. We initially analyze the relation between the exported and imported value of agribusiness, and hereafter estimate indexes of diversification of each country’s agricultural trade partners and concerning the specific products exported and imported. Our conclusions highlight how many developing countries are marked by a low degree of both sectorial and geographical diversification of their agricultural trade, making them vulnerable to fluctuations within global agricultural markets. Key words: Agricultural products, balance of trade, World Trade Organization (WTO), trade concentration. JEL: Q17, F10, C43.

Economic Impact of Eliminating the Fuel Tax Exemption in the EU Fishing Fleet

The EU-27 fishing fleet consumed 2.02 billion liters of fuel to catch 4.48 million tons of fish, valued at €6.7 billion in 2018. The profitability of the EU fishing fleet shows an increasing trend, partly due to the improvements in the energy efficiency and recovery of fish stocks in the North-east Atlantic. Fuel is one of the main expenses fishing fleets have, and therefore, their economic performance remains highly dependent on the fuel price, even if they benefit from a fuel tax exemption. The adoption of the European Green Deal, the revision of the Energy Taxation Directive (ETD), the ongoing World Trade Organization (WTO) negotiation to prohibit harmful fisheries subsidies, and general public opinion are putting pressure to eliminate this tax exemption. This analysis investigates the impacts of the potential elimination of the fuel tax exemption across the different EU fishing fleets and it is discussed to what extent the small-scale, large-scale and distant-water fleets could be affected. This analysis is useful to inform policy-makers and stakeholders on the consequences of the potential elimination of the fuel tax exemption, as well as to discuss potential measures to mitigate the socioeconomic impacts arising from this eventual change in the current regulatory framework.

Organic Agriculture in Least Developed Countries in Relation to the Development of the Organic Farming Sector in Poland. The Example of African Countries versus the Organic Sector in Poland

Over the past few years, organic farming has seen a dynamic development globally. In 2015, the global market for organic products was €81.6 billion, rising to more than €90 billion in 2018 (Światowy rynek produktów ekologicznych osiągnął wartość 90 mld euro 2019). There has also been a significant rise in the production of organic products by the group of Least Developed countries (LDCs) (such as African countries), which are being supported by all the World Trade Organisation negotiations within the Doha Round. The aim of this article is to present different definitions of organic farming according to the most important international organizations. Furthermore, it will examine the status of the organic farming sector in selected examples of Africa’s LDCs and investigate the results of Doha’s negotiations within the agricultural market (particularly towards LDCs). Finally, it will investigate the status and the latest developments of organic farming in the LDCs compared to Poland. The research methods used in the article include an analysis of available documentary and literary sources on the topics in question, the development of relevant statistical surveys, and the deductive approach to draw conclusions from the development of organic agriculture in LDCs and Poland (as an example of a Central European Country).

The Mystery of Reciprocal Demand for Regional Trade Partnership: Indian Experience in RCEP Regional Value Chains

Abstract The decision of a country to join regional trade agreements (RTAs) is guided by its expected welfare gains, though potentials of both trade creation and trade diversion cannot be ruled out through such arrangements. The slow progress of the World Trade Organization negotiations has created a demand for mega-regional trade agreements in the last decade, but the recent US and Indian pullout from Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP), respectively, raised a question on their attraction. One of the major underlying objectives of RTAs is to deepen intra-bloc participation in regional value chains (RVCs) and International Production Networks (IPNs), through adoption of reformed rules of origin (ROO) provisions and mutual recognition agreements (MRA) for standard harmonization. This article, through an analysis of the RVC–IPN participation of the RCEP countries, attempts to understand to what extent the Indian pullout from RCEP can be linked to its unfulfilled expectations. The observations indicate that, relatively modest participation in the RVCs, declining domestic value added content of exports and the associated adverse trade balance scenario have critically shaped the Indian standpoint. The evolving Indian orientation towards trade remedy mechanism can be viewed in this backdrop. The analysis concludes that in the post-coronavirus disease 2019 (COVID-19) period, the Indian decision to consolidate domestic manufacturing sector needs to acknowledge the reality rather than being guided by the rhetoric.

The WTO Legal and Dispute Settlement Systems in Times of Global Governance Crises

This contribution begins with an overview of current global governance crises (I). Due to the ‘perspectivism’, ‘bounded rationality’ and ‘conflicting instrumentalization’ of law by politicians, the social, economic and political disagreements inside and among states often prevent reasonable crises responses, as illustrated by the increasing conflicts between neo-liberal, state-capitalist and European ordo-liberal conceptions of international economic regulation (II). The hegemonic nationalism driving President Trump’s ‘trade wars’, his assault on the World Trade Organization (WTO) and the US destruction of the WTO Appellate Body reflect what Nobel Prize laureate A.Einstein called the ‘madness’ of using obviously wrong methods for resolving problems; without protecting the WTO legal and dispute settlement system against money-driven, nationalist power politics (III) and maintaining the independence and impartiality of the Appellate Body (IV), the needed WTO reforms, mitigation of climate change, and coherent responses to global health and environmental emergencies appear impossible (V). The failures of ‘member-driven WTO negotiations’ suggest that adjusting the world trading system to the global governance crises may require pluri-lateral and regional reforms before the needed WTO adjustments may be possible (VI).

Rethinking non-recognition: The EU’s Investment Agreement with Taiwan under the One-China Policy

AbstractThis article re-examines the theories of recognition and non-recognition in the context of the evolving framework of the European Union (EU)’s trade and investment relations with Taiwan from legal and international relations perspectives. Notwithstanding its one-China policy, the EU has developed a pragmatic approach to engaging Taiwan under bilateral consultations and World Trade Organization negotiations that have built the foundation for the bilateral investment agreement (BIA). The article argues that since the 1980s, the EU has accorded diverse forms of recognition to Taiwan and the BIA will buttress the process. To substantiate the contention, the article systemically explores the political and trade policies of European states and EU institutions in line with their strategies toward cross-strait relations.By deciphering the new momentum that has galvanized the European Commission’s strategy towards the EU-Taiwan BIA, the research sheds light on the implications of European Parliament resolutions and the EU’s investment talks with China. The structure and impact of the BIA are also analysed in light of EU investment protection agreements with Singapore and Vietnam. Hence, the findings contribute to the interdisciplinary study of international law and international relations and enhance the understanding of the EU’s Asia-Pacific trade and investment agreements.

Disciplining trade-distorting support to cotton in the US: An unresolved issue at the WTO negotiations

Despite the higher cost of production, the developed country members of the World Trade Organization (WTO) like the United States (US) enjoy an artificial comparative advantage in the international cotton markets due to huge subsidies and entitlements at the expense of the poor farmers in developing countries. This paper critically examines the effects of various proposals in the WTO negotiations on the flexibilities to the US to support its cotton farmers. The paper finds that agreeing on any proposal, and implementing it, would considerably reduce the US policy space and benefit millions of developing country cotton farmers.

Is price significant in planning for sugar beet production? An example from Turkey

Sugar beet is a major staple for farmers in central and south-eastern Anatolia and interior Aegean of regions as it is the major natural sugar provider for Turkey. The sector has been controlled and supported until the World Trade Organisation (WTO) negotiations and privatization of the price setter public authorities. The supports were transferred to farmers via prices announced by the public authorities. But contracted farming has been maintained by the private sector as well in order to secure domestic sugar need. The price response of the sector was measured through time series analysis between 1960 and 2015 using secondary data. The traditional characteristics of the sector and attachments to the contracted farming were confirmed at the end of the analysis with 6 % response of price to short run and 13 % response of price to long run production.