1 The Effects of Political Institutions on the Extensive and Intensive Margins of Trade

We present a model of political networks that integrates both the choice of trade partners (the extensive margin) and trade volumes (the intensive margin). Our model predicts that regimes secure in their survival, including democracies as well as some consolidated authoritarian regimes, will trade more on the extensive margin than vulnerable autocracies, which will block trade in products that would expand interpersonal contact among their citizens. We apply a two-stage Bayesian LASSO estimator to detailed measures of institutional features and highly disaggregated product-level trade data encompassing 131 countries over a half century. Consistent with our model, we find that (a) political institutions matter for the extensive margin of trade but not for the intensive margin and (b) the effects of political institutions on the extensive margin of trade vary across products, falling most heavily on those goods that involve extensive interpersonal contact.

作者:Kim, In Song; Londregan, John; Ratkovic, Marc
出版月(日)年:Fal., 2019
卷(期),頁碼:73(4), 755-792
2 Invocation of National Security Exceptions under GATT Article XXI: Jurisdiction to Review and Standard of Review

The invocation of national security exceptions under Article XXI of the General Agreement on Tariffs and Trade (GATT) 1994 has long been viewed as "self-judging". In the landmark case of Russia-Measures Concerning Traffic in Transit, the panel of the WTO's dispute settlement body (DSB) addressed two important but previously considered ambiguous issues. First, the Panel confirmed its jurisdiction to review its members' invocation of Article XXI of GATT 1994. Second, offering a detailed interpretation of Article XXI, especially paragraph (b) and its subparagraph (iii), the panel distinguished the objective requirements from the self-judging features, and held that it has the jurisdiction to determine whether the objective requirements of Article XXI have been satisfied when a member invokes the national security exception, and the member's discretion is also expected to be limited by its good faith obligation, which, as an established principle of international law, shall apply to both the member's definition of the essential security interests and its connection to the measures being taken.

作者:Wang, Chao
出版月(日)年:Sep., 2019
卷(期),頁碼:18(3), 695-712
3 Do free trade agreements promote sneaky protectionism? A classical liberal perspective

A neglected aspect of regional trade agreements (RTAs) is their protectionist potential. In times of a stagnating World Trade Organization (WTO), growing economic nationalism and skepticism about the merits of free trade and trade agreements, the paper examines to what extent recently signed RTAs really promote genuine free trade or rather foster sneaky protectionism under the guise of free trade. For this, the paper proposes an ideal-type free trade agreement benchmark model based on a classical liberal perspective and applies it in a multiple case study approach to assess three cases of recently concluded mega-RTAs: the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the renegotiated North American trade agreement USCMA, and the Canada-European Union (EU) agreement CETA. The article shows that all of them are far from the classical liberal ideal of totally free trade and have a high content of back door protectionism suitable to raise trade barriers when politically opportune. In particular, the United States-Mexico Canada Agreement (USMCA) includes many clear protectionist provisions that might even outweigh its liberalizing stipulations, whereas CPTPP and CETA can be deemed net liberalizing. It concludes that given political economy constraints, RTAs can nevertheless remain a second-best solution to the classical liberal ideals of completely unhampered trade and unilateral liberalization provided that they remove more impediments to free exchange than they cement or create.


作者:Wandel, Jurgen
出版月(日)年:Sep., 2019
卷(期),頁碼:55(3), 185-200

This article challenges the widespread view that existing WTO rules are insufficient for dealing with State capitalism in China, which has been further emboldened by the latest rounds of State-owned enterprise ('SOE') reforms. Through a careful review of WTO agreements and jurisprudence, it is argued that new rules are not necessarily needed because the unique challenges created by China's State capitalism can be appropriately addressed by the WTO' s existing rules on subsidies coupled with the China-specific obligations. A more realistic approach would be to encourage China to undertake market-oriented reforms through WTO litigation based on existing rules rather than hying to negotiate new rules.

作者:Zhou, Weihuan; Gao, Henry; Bai, Xue
出版月(日)年:Oct., 2019
卷(期),頁碼:68(4), 977-1022
5 The Problem with Public Morals

Empirical study reveals that the methods employed for identifying public morals and societal values in international dispute settlement seldom capture them directly. Rather what we see are governmentally mediated representations of these morals and values. Accepting such representations masks diversity in moral views and societal values within populations, assumes that governments properly represent populations on matters of conscience, and may endorse the characterization of social policies as an embodiment of public morality even where they are in tension with accepted human rights. The underlying difficulty appears to be that public morals defences entered international economic law at a time predating the current highly legalized dispute settlement processes with which we are now familiar, and that they are unsuited by nature to international adjudication in its present form. Contrastingly, the idea of legitimate public policy objectives featuring in certain recently negotiated regional free trade agreements poses fewer concerns of this nature.

作者:Foster, Caroline E.
出版月(日)年:Dec., 2019
卷(期),頁碼:10(4), 622-655
6 Safeguarding Africa's Development Goals in the Global Governance of Trade

Concerns have been expressed about the impact of free trade on many developing countries and whether such countries really stand to benefit from the current regimes for the global governance of trade. This is particularly exemplified by the challenges African nations confront in gaining export access for their products in the global North and the inability of the WTO Doha Development Round to resolve the matter effectively. Africa remains the world's poorest continent. In addressing challenges confronting Africa in the global governance of trade, we examine the existing framework for trade liberalisation in the continent against the backdrop of the regional trade arrangements and the recent efforts towards the formation of an African Continental Free Trade Area. The paper discusses some of the challenges of Africa in the WTO system especially in relation to the ability to compete favourably in global markets and how the continent may pursue trade liberalisation objectives in a manner conducive to the realisation of the development goals of the continent through regional integration.

作者:Owoeye, Olasupo; Potin, Nathalie; Okunbor, Orobosa
出版月(日)年:Dec., 2019
卷(期),頁碼:40(2), 8-26

The authors undertake an in-depth analysis of how process of digitalization, namely, wide-scale introduction of powerful information and communication technologies, affects and redefines the international trade. It is pointed out that, according to fresh UN and WTO data, the scope of transborder deliveries within the segment of e-commerce is expanding at a noticeably faster pace than the traditional global trade. The increasing application of ICT-technologies significantly accelerates export and import transactions. This allows to significantly expand the range of participants in cross-border turnover of goods and services. Moreover, it makes possible to involve into this turnover the resources that had been traditionally considered as internationally non-tradable. Thus, new comparative advantages of trading nations are formed. Global trading platforms based on sophisticated Internet solutions have become particularly important due their convenience for involved parties. The sectoral composition of e-commerce is of special interest. Available statistics shows that B2B transactions noticeably prevail over B2C globally and in the leading trading nations. The only important exception from this general trend is presented by China, most possibly thanks to its huge 1.5 billion consumers' domestic market. In addition to the many positive effects, the digitalization of trade poses a number of conceptual and practical problems. Concerning the theory, there are growing doubts in the analytical appropriateness of the gravity model that had been traditionally applied for explaining and predicting the geographical distribution of international trade flows. Within the modern global economy with its close digital connectivity and powerful transportation-logistic networks the trades can interact in the almost real-time mode. Respectively, the importance of geographical proximity factor seems to be fading away. In terms of practicalities, an major negative implication of digitalization is that it creates additional preconditions for the monopolization of trade exchange between countries by a handful of Big-tech companies. At last, the fundamental issues of regulating this new area of international cooperation need to be resolved. The governmental policies and rules should be adjusted to the ongoing digital transformations. First of all, this relates to the taxation of e-commerce. The temporary moratorium on imposition of import tariffs was adopted by WTO member-states in 1998 and extended in 2017. In the conditions of a virtual burst of B2B and B2C trade such an approach is increasingly disputed by developing countries. The issue needs to be resolved on a consensus basis. The adoption of recently proposed of Agreement on digital products and other services (ADPOS) may give the WTO a chance to revitalize its role in the global economy.

作者:Strelets, Irina A.; Chebanov, SergeyK
出版月(日)年:Jan., 2020
卷(期),頁碼:64(1), 15-25
8 Towards a Coherent Theory of Panel Recommendations for Expired Measures

Article 19.1 of the Dispute Settlement Understanding provides that if a measure is found to be inconsistent with a WTO Agreement, the Panel or Appellate Body 'shall recommend that the Member concerned bring the measure into conformity with the agreement'. However, Panels find themselves in a difficult position when the contested measure has expired during the course of proceedings. Since, on the one hand, the measure which would have ordinarily been recommended to be withdrawn is no longer in existence, but on the other hand, they are under an obligation to issue a recommendation as per Article 19.1. Various rationales of the Panels and the Appellate Body for providing recommendations for expired measures ('EMRs') have been inconsistent, ad-hoc and even contradictory. Given the different array of approaches adopted, there is no coherent and integrated theory which can be formulated which tells us when and why EMRs should be provided under Article 19.1. This article seeks to bridge this gap. The article also provides a critical analysis of the questionable recommendations issued by the Panel in India - Import of Iron and Steel Products and provides a more coherent framework to guide Panels' recommendations in relation to expired measures.

作者:Bhardwaj, Prakhar
出版月(日)年:Sep., 2019
卷(期),頁碼:22(3), 483-502
9 Challenging Unwritten Measures in the World Trade Organization: The Need for Clear Legal Standards

Disputes in the World Trade Organization (WTO) involving the challenge of unwritten measures have increased in recent years. This trend may have been encouraged by the successful challenge of Argentina's 'managed trade policy' as an 'overarching unwritten measure' in Argentina-Import Measures. Advancing a claim against an unwritten measure, however, is not an easy undertaking. These measures are not embodied in any law, administrative regulation or judicial decision. Their very existence and precise contours are, therefore, uncertain and must be proven with evidence, which may not necessarily be readily available. The uncertain nature of unwritten measures makes the dispute settlement process significantly more complicated for the complainant, the respondent and the WTO adjudicators. Despite the difficulties in challenging, defending and adjudicating unwritten measures, relatively little has been written on this subject. This article discusses the types of trade concerns that could be challenged as 'unwritten measures', and the different legal characterizations (analytical tools) that have been used to challenge these trade concerns in the WTO. The article further explores the practical difficulties that have been encountered in challenges against unwritten measures and how these difficulties have sometimes, but not always, been overcome. The article concludes that there is a lack of clarity as to the correct legal standard that must be applied in the challenge of different types of unwritten measures. There is more work to be done to clarify the applicable legal standards and the types of evidence required to substantiate the existence of unwritten measures.

作者:Valles, Cherise; Pogoretskyy, Vitaliy; Yanguas, Tatiana
出版月(日)年:Sep., 2019
卷(期),頁碼:22(3), 459-482
10 Are Retaliatory Trade Measures Justified under the WTO Agreement on Safeguards?

In March 2018, the USA adopted measures to increase tariffs on a range of imported steel and aluminum products, claiming that the measures are justified for its national security concerns. Several World Trade Organization Members, including the European Union, India, Russia, Turkey, and China, have argued that the US measures are in violation of WTO rules on safeguard measures and adopted retaliatory measures invoking Article 12.5 of the Agreement on Safeguards. The USA argues that its measures do not constitute safeguard measures under WTO rules, and, therefore, the retaliatory measures are not justified under the SA. This article reviews relevant cases and examines whether the US measures are safeguard measures under the SA and whether the retaliatory measures are also justified under the SA. The article also discusses the need for regulatory reform to address the issues with unilateral trade measures and retaliation.

作者:Lee, Yong-Shik
出版月(日)年:Sep., 2019
卷(期),頁碼:22(3), 439-458