Politics of World Trade
Instructors
Credits / Language / Semester
2Credits / English / Summer
Objectives/Overview
After the Second World War, from around 1950’s world trade began to grow under a new international economic order based on multilateralism embodied in the institutions such as the IMF and the GATT.
This system worked extremely well and contributed to the growth of world economy, but over the years, this system necessarily went through transformation, and the GATT was replaced by the WTO in 1995. The WTO further promoted rapid growth of world trade as exemplified by the success of China and other emerging economies. Recently, however, the very foundation of the global system, including world trade, is experiencing serious tension due to its own success.
Related to this systemic situation, multilateral negotiations under the auspices of the WTO, namely the Doha Round, are still unable after more than ten years from its initiation to come to a successful conclusion. At the same time we are witnessing proliferation of regional and bilateral free trade agreements.
The questions before us, then, are: What is happening on the global scene with respect to trade liberalization? Why is this so? Where will this trend take us?
This course seeks to look into these questions, by looking at the WTO and the Doha Round, recent developments in regional integration, and current proliferation of FTA agreements and negotiations, with a particular focus on the Asia Pacific arena, including the TPP.
Keywords
World Trade, WTO, DDA, FTA, TPP
Schedule
PART ONE: INTRODUCTION AND BASICS
Session 1: GLOBAL TRADE AND MULTILATERAL TRADING SYSTEM
Session 2: OVERVIEW OF THE CURRENT INTERNATIONAL TRADE ISSUES
PART TWO: MEMBER COUNTRIES / ENTITIES:
(Members introduce their trade structure (must check its tariff schedules), basic trade policy orientation, internal political structure related to trade)
Session 3: REPORTING; AUSTRALIA, BANGLADESH (LDCs), BRAZIL, (MERCOSUR), CHINA, EGYPT, EU
Session 4: REPORTING; INDIA, INDONESIA (ASEAN), JAPAN, KOREA, RUSSIA, US
PART THREE: TRADING SYSTEM ISSUES
(Trading-system issues will be discussed according to the topics assigned for the following three sessions. After an introductory explanation at the beginning, then students report on behalf of the members they represent, the respective member’s Trade Liberalization Strategy, such as priorities given to WTO/DDA, in particular sectors and areas of interest, FTA/EPA strategy, as well as importance given to regional cooperation.)
Session 5: Basic Principles: MFN & NT; Commitments and Disputes (predictability and security)
Part I: General Discussions on topics for the session)
Part II: Reports from 4 DEVELOPED MEMBERS: AUSTRALIA; EU; JAPAN; US;
Session 6: From GATT to WTO via Uruguay Round; new areas Services, IP,; Doha round
Part I: General Discussions on topics for the session)
Part II: Reports from 4 EMERGING COUNTRIES: BRAZIL; CHINA, INDIA, KOREA;
Session 7: Protectionism, Trade remedies, Regulatory measures (TBT and SPS)
Part I: General Discussions on topics for the session)
Part II: Reports from 4 DEVELOPING OR RESOURCE BASED MEMBERS: BANGLADESH; INDONESIA; EGYPT; RUSSIA
PART FOUR: TRADE ISSUES
(Members will report on their respective industrial and trade policies in the three sectors of Autos / Agriculture/ Services with focus on their respective negotiating positions)
Session 8: REPORTING: CHINA; JAPAN; KOREA: US
Session 9: REPORTING: AUSTRALIA; BANGLADESH; EU; INDIA
Session 10: REPORTING: BRAZIL; EGYPT; INDONESIA; RUSSIA
PART FIVE: POLITICS OF MULTILATERALILSM VS PREFERENTIALISM
Session 11: Discussions on the future course of trade liberalization, with particular focus on the WTO trade round and bilateral or regional preferential agreement negotiations)
ELECT or SELECT Chairperson for Mock Negotiations
PART SIX: MOCK NEGOTIATION
Session 12: FULL DAY? FOR MOCK NEGOTIATION
Session 13: POST MORTEM
Teaching Methods
The course will be organized as a seminar where students are expected to take active part in discussions.
Students will be assigned to one of the following 12 important trading countries/entities, namely;
AUSTRALIA
BANGLADESH (LDCs)
BRAZIL (MERCOSUR)
CHINA
EGYPT
EU
INDIA
INDONESIA (ASEAN)
JAPAN
KOREA
RUSSIA
US
Depending on the size of the class, there may be more than one student assigned to a country/entity. No one will be assigned to his/her country of citizenship.
Throughout the course, students will follow the subject matters from the perspective of the country/entity of assignment, and will make contributions by reporting on their respective positions on various subjects and issues. Each member will make one short report and two 10-15 minute reports as specified above in the SCHEDULE.
In the penultimate session students will engage in mock trade negotiation, which could be called “Informal Meeting of Ministers Responsible for Trade”, to produce a consensus document on trade policy priorities, with particular reference to the WTO Ministerial Conference scheduled in December 2013.
Grading
TERM PAPER:
At the end of the course, students shall hand in a TERM PAPER (of about 10 pages) in which they will predict the international trade scene in 2020, with a focus on Asia Pacific region. To be more specific, the paper should foretell the prospects of
1) The Doha Round and/or the next round of multilateral negotiations,
2) FTAs in the Asia-Pacific region, especially the TPP, and
3) East Asian Economic Community
This exercise of “predicting” is essentially a matter of making an “educated guess” which would require one to “educate” oneself in order to make a more realistic “guess.”
GRADING
1) term paper 50%
2) reports in class 40%
3) participation in class discussions and commitment to learning 10%
Required Text
READING MATERIALS
Hoekman, Bernard M., & Kostecki, Michel M.: The Political Economy of the World Trading System ? The WTO and Beyond (Third Edition); Oxford
Ikenberry, G. John: After Victory; Princeton
Reference Books
Jackson, John H.: The World Trading System (Second Edition); MIT Press
Baldwin, Richard, and Low, Patrick (edited): Multilateralizing Regionalism, Challenges for the Global Trading System; Cambridge
Munakata, Naoko: Transforming East Asia; The Evolution or Regional Economic Integration; Brookings/RIETI
Multitude of references accessible at the WTO HP, and for individual member information much can be obtained from official HP’s
Notes on Taking the Course
Good English to be able to write a solid term paper