Asymmetric Trade Negotiations

Asymmetric Trade Negotiations PDF

Author: Sanoussi Bilal

Publisher: Routledge

Published: 2016-04-15

Total Pages: 222

ISBN-13: 1317177703

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The slow pace of the Doha Round has boosted the proliferation of regional and bilateral trade agreements. Paradoxically, the more powerful actors, the US and the European Union, who at the same time have benefited the most from the multilateral system, have also been engaged in bilateral and regional negotiations in order to sign WTO-plus agreements with developing countries. Combining a clear theoretical exposition with systematic cross-regional analysis, 'Asymmetric Trade Negotiations' offers a coherent picture of strategic, design and political economy aspects of North-South trade negotiation processes, from African, Asian and Latin American perspectives. Skilled area specialists gather to provide negotiators and policy makers in the South with recommendations, best practices, and benchmarks and contribute to the understanding of these recent processes.

Free Trade and the Power Asymmetry between the United States and Canada

Free Trade and the Power Asymmetry between the United States and Canada PDF

Author: Timo Metzner

Publisher: GRIN Verlag

Published: 2010-12-01

Total Pages: 24

ISBN-13: 3640766113

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Seminar paper from the year 2004 in the subject American Studies - Culture and Applied Geography, grade: 2,0, Free University of Berlin (John-F.-Kennedy-Institut für Nordamerikastudien), course: Proseminar „Politics in North America: A Comparative Perspective“, language: English, abstract: This paper will address the question what strategic goals stood behind the promotion and implementation of free trade between the United States and Canada. The purpose is to evaluate the Canada-U.S. Free Trade Agreement (CUFTA) and the North American Free Trade Agreement (NAFTA) in respect to the objectives of both parties that were not commonly shared in the beginning. It is about the consequences of power imbalance for regional free trade and not about the social costs that are intensively discussed and certainly heavily felt in both countries. Since the view of a power asymmetry that exists between the two countries should be rather uncontested, the central idea of the following text is to examine in detail at which points this has shaped the content of the two agreements. This approach is inspired by the broader question, whose interests free trade serves in general. An important rhetoric strategy of promoters of the neo-liberal agenda is to suggest that the free play of market forces encouraged by such agreements gives all participants the same fair opportunities to engage in trade without intervention from governments. Consequently, all members of the distinct community will benefit from freer trade. For it is rather clear that power and national interests always play a role in politics – in this case in the processes leading to free trade agreements – it shall be demonstrated how this works in particular.

Asymmetric Trade Negotiations

Asymmetric Trade Negotiations PDF

Author: Sanoussi Bilal

Publisher: Routledge

Published: 2016-04-15

Total Pages: 277

ISBN-13: 131717769X

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The slow pace of the Doha Round has boosted the proliferation of regional and bilateral trade agreements. Paradoxically, the more powerful actors, the US and the European Union, who at the same time have benefited the most from the multilateral system, have also been engaged in bilateral and regional negotiations in order to sign WTO-plus agreements with developing countries. Combining a clear theoretical exposition with systematic cross-regional analysis, 'Asymmetric Trade Negotiations' offers a coherent picture of strategic, design and political economy aspects of North-South trade negotiation processes, from African, Asian and Latin American perspectives. Skilled area specialists gather to provide negotiators and policy makers in the South with recommendations, best practices, and benchmarks and contribute to the understanding of these recent processes.

Realigning International Trade Negotiation Asymmetry

Realigning International Trade Negotiation Asymmetry PDF

Author: Ms. Olajumoke Omoniyi Oduwole

Publisher: Stanford University

Published: 2011

Total Pages: 339

ISBN-13:

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Recently, it has become apparent to developing countries in the WTO that their limited bargaining power has, in fact, been a stumbling block to obtaining desired negotiation outcomes in the multilateral trade system. Thus, to execute any fundamental changes to the status quo, there was a need to cluster together, pool resources and form alliances to leverage their collective strength in the negotiations. What remained unclear, however, was what role this increased coalition activity by developing countries played in the current WTO negotiations process. Therefore, the primary purpose of this dissertation is to describe how this shift toward coalitions as a negotiation strategy by developing countries occurred and to consider the possible implications of this coalition strategy for the future of the multilateral trading system. Due to the complexity of the Doha Round, I restricted my area of study to the Doha Round agriculture negotiations as a single case study, since agriculture is the undisputed "locomotive" of the Round, having set the tone for the majority of the negotiations. Using qualitative data, I captured a contextual description of four developing country agriculture coalitions -- Cotton-4, G-20, G-33 and G-90 -- as "nested cases" throughout the agriculture negotiation process from March 2003 to March 2010. I described the function of developing country coalitions in the negotiations by comparing and contrasting aspects of each coalition's negotiation strategy or tactics during the research study period. In sum, I investigate my preliminary assessment of the reason coalition strategy emerged as the dominant negotiation tool for developing countries in this particular WTO Round. I then describe how these coalitions maneuvered in the ongoing negotiations during the study period. At the end of my descriptive comparative analysis, I was able to explain the significance of coalitions as a strategic tool for developing countries in WTO trade rules negotiations as well as assess the specific role that each of the four case study coalitions have played in the negotiation process. In conclusion, the study highlights some of the lessons learned from developing country coalition strategy in this Round. The information derived could serve as a platform for further research in this area and eventually explain the raison d'être behind the negotiated outcomes.

The Effects of Trade Agreements on Trade

The Effects of Trade Agreements on Trade PDF

Author: Jae Duck Kim

Publisher:

Published: 2022

Total Pages: 0

ISBN-13:

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There are also few papers distinguishing the effects of the type of agreement. Estevadeordal, Freund et al. (2008) research CU and FTA's effects on tariff complements using Latin America data. Innwon and Soonchan (2009) studied similar effects for East Asia. Ghosh and Yamarik (2004) divided regional trade agreements into five theoretical types based on the degree of integration: preferential tariff agreement, free trade area, customs union, common market and monetary union. They found that the total trade creation is increasing in the degree of integration of RTAs. Cipollina and Salvatici (2010) categorized RTAs into two types of agreements, which also differ from this study: reciprocal agreements involving symmetric trade liberalization, and non-reciprocal agreements involving asymmetric trade liberalization in which one country, mainly the North, provides unilateral preference. However, none of these consider the partner's level of development. This paper will examine the impacts of forming regional trade agreement between various combination of country-pairs based on the level of development(North-North, South-South, North-South and South-North) as well as distinguishing the effects of three types of agreements (FTA, CU and PSA). The paper is organized as follows. In Section 2, we introduce and briefly derive the “micro-founded” gravity equation of Anderson and Wincoop (2003), which is new standard of the gravity model. Section 3 presents empirical specification and data source. Section 4 provides the main results of empirical estimation and then Section 5 presents the summary and conclusion.

The Stable Equilibrium of Preferential Trade Agreements Under Technology Asymmetry

The Stable Equilibrium of Preferential Trade Agreements Under Technology Asymmetry PDF

Author: Young-Han Kim

Publisher:

Published: 2016

Total Pages: 40

ISBN-13:

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This paper examines the optimal policy for trade negotiation in the current multilateral and preferential trade regime. Using a four country oligopoly model with asymmetric technology, we examine the implication of preferential trade agreement on tariff and welfare. We find any preferential trade agreement has a tariff complementarity effect. Social welfare of the more efficient country is also higher with more cooperative trade negotiation regime. However, for technically inefficient country, the cooperative trade policy does not always guarantee to improve the social welfare when the technology difference is large or the global free trade is not feasible. Under large technology difference, we show that South-South FTAs is an optimal alternative policy for the inefficient countries and is more sustainable.

Two-Tier Asymmetric Information as a Motive for Trade, Trade Policies, and Inefficient Trade Agreements

Two-Tier Asymmetric Information as a Motive for Trade, Trade Policies, and Inefficient Trade Agreements PDF

Author: Antoine Bouët

Publisher:

Published: 2015

Total Pages: 48

ISBN-13:

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We consider a general equilibrium model of international trade with two identical countries, two commodities, a terms-of-trade externality, and two layers of informational asymmetries. First, domestic producers have private information on their technology. Such within-country informational asymmetry impacts on the design of “behind-the-border" policies which reflect the political influence of domestic producers. Those policies create a wedge between price and marginal costs so as to contract domestic supply in response to truth-telling constraints. This causes trade with an otherwise symmetric country and thus justifies the use of an import tariff at borders. Eliminating those barriers and reaching efficient trade agreements may become impossible once governments have also private information on the political influence of domestic producers: a second layer of informational asymmetry that now impacts negotiations across countries. We present conditions for free trade to remain implementable in those informationally-constrained contexts. Otherwise, we characterize second-best trade agreements and show that, under weak conditions, governments giving an excessive political weight to high-cost domestic producers might be reluctant to adopt free trade, possibly implementing tariffs still at their non-cooperative levels.