Historical learning in the design of WTO rules: the EC sugar case

The Uruguay Round Agreement made significant changes to the governance of international trade. Trade rules and dispute settlement mechanisms were altered and a series of specific agreements provided for liberalisation across economic sectors. The Agreement on Agriculture, arguably the most difficult and contentious to negotiate, permitted the continued use of trade-distorting instruments, both domestically and at the border. Rule-enforcement in agriculture therefore relies crucially on the clarity of the rules. This paper provides an in-depth study of a unique and critical case for understanding the new rules: the EC sugar regime. This policy was challenged unsuccessfully under the pre-Uruguay Round rules, but successfully under the new rules. This case is particularly valuable in allowing us to isolate the effect of the Uruguay Round on agricultural trade disputes: the policy under challenge was essentially unchanged and the legal actions addressed the same concern – excessive export subsidisation. Drawing on primary and secondary materials and interviews with key policy actors, sugar is used to illustrate how those involved in the multilateral process learned from particular rule weaknesses revealed in earlier cases, revising those rules in the Uruguay Round in such a way that dispute panels can more readily and objectively determine rule breaches

Alternatives to PPPs: positive action for in-house services

The paper reviews empirical examples of policies and approaches for developing public services through public sector provision and direct employment, in the context of EU law

A Trade Regime for Sub-National Exports Under the Agreement on the Application of Sanitary and Phytosanitary Measures

Regulations relating to disease management have traditionally been an important component of the overall environment in which international trade in agriculture products occurs. The World Trade Organization (WTO) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) allows members to restrict or prohibit imports from a country when imported products present a risk to human, animal or plant health or life. As the Bovine Spongiform Encephalopathy (BSE, also commonly called Mad Cow disease in the media) outbreak in Canada showed, the disease status of a country is a major competitive advantage and losing disease-free status can impose significant costs on an industry. The risks associated with SPS-based border closures were not well anticipated by the Canadian industry and government, and little was done in preparation for the potential change in the trading environment and the ensuing losses. This is a mistake many stakeholders in the industry plan to avoid making again.International Relations/Trade,

Integration of markets vs. integration by agreements

This paper provides an analysis of the two channels of regional integration: integration via markets and integration via agreements. Given that East Asia and Latin America are two fertile regions where both forms of integrations have taken place, the authors examine the experiences of these two areas. There are four related results. First, East Asia had been integrating via markets long before formal agreements were in vogue in the region. Latin America, by contrast, has primarily used formal regional trade treaties as the main channel of integration. Second, despite the relative lack of formal regional trade treaties until recently, East Asia is more integrated among itself than Latin America. Third, from a purely economic and trade standpoint, the proper sequence of integrations seems to be first integrating via markets and subsequently via formal regional trade agreements. Fourth, regional trade agreements often serve multiple constituents. The reason why integrating via markets first can be helpful is because this can give stronger political bargaining power to the outward-looking economic-oriented forces within the country.Trade Law,Free Trade,Trade and Regional Integration,Trade Policy,Emerging Markets

The Role of Industrial Country Policies in Emerging Market Crises

This paper considers policies of the industrialized countries, as they pertain to crises in emerging markets. These fall into three areas: (1) their own macroeconomic policies, which determine the global financial environment; (2) their role in responding to crises when they occur, particularly through rescue packages, which have three components -- reforms in debtor countries, public funds from creditor countries, and private sector involvement; and (3) efforts to reform the international financial architecture, with the aim of lessening the frequency and severity of future crises. A recurrent theme is the tension between mitigating crises that occur, and the moral hazard that such efforts create in the longer term. In addition to reviewing these three areas of policy, we consider the institutions through which the more powerful countries exercise their influence. We conclude with a discussion of the debate over the sins of the International Monetary Fund, and proposals for reform.