Negotiating Trade Liberalization at the WTO: Domestic Politics and Bargaining Dynamics PDF
Preview Negotiating Trade Liberalization at the WTO: Domestic Politics and Bargaining Dynamics
97 PM International Political Economy Series General Editor: Timothy M. Shaw, Professor and Director, Institute of International Relations, The University of the West Indies, Trinidad & Tobago Titles include: Lucian M. Ashworth and David Long (editors) NEW PERSPECTIVES ON INTERNATIONAL FUNCTIONALISM Eugénia da Conceição-Heldt NEGOTIATING TRADE LIBERALIZATION AT THE WTO Domestic Politics and Bargaining Dynamics Robert W. Cox (editor) THE NEW REALISM Perspectives on Multilateralism and World Order Frederick Deyo (editor) GLOBAL CAPITAL, LOCAL LABOUR Stephen Gill (editor) GLOBALIZATION, DEMOCRATIZATION AND MULTILATERALISM Björn Hettne, András Inotai and Osvaldo Sunkel (editors) GLOBALISM AND THE NEW REGIONALISM Christopher C. Meyerson DOMESTIC POLITICS AND INTERNATIONAL RELATIONS IN US–JAPAN TRADE POLICYMAKING The GATT Uruguay Round Agriculture Negotiations Isidro Morales POST-NAFTA NORTH AMERICA Manuela Moschella GOVERNING RISK The IMF and Global Financial Crises Volker Rittberger and Martin Nettesheim (editors) AUTHORITY IN THE GLOBAL POLITICAL ECONOMY Justin Robertson (editor) POWER AND POLITICS AFTER FINANCIAL CRISES Rethinking Foreign Opportunism in Emerging Markets Michael G. Schechter (editor) FUTURE MULTILATERALISM The Political and Social Framework Ben Thirkell-White THE IMF AND THE POLITICS OF FINANCIAL GLOBALIZATION From the Asian Crisis to a New International Financial Architecture? Thomas G. Weiss (editor) BEYOND UN SUBCONTRACTING Task Sharing with Regional Security Arrangements and Service-Providing NGOs Robert Wolfe FARM WARS The Political Economy of Agriculture and the International Trade Regime International Political Economy Series Series Standing Order ISBN 978–0–333–71708–0 hardcover Series Standing Order ISBN 978–0–333–71110–1 paperback (outside North America only) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of diffi culty, write to us at the address below with your name and address, the title of the series and one of the ISBNs quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England 9780230273566_01_prexviii.indd ii 1/13/2011 8:19:31 PM Negotiating Trade Liberalization at the WTO Domestic Politics and Bargaining Dynamics Eugénia da Conceição-Heldt 9780230273566_01_prexviii.indd iii 1/13/2011 8:19:31 PM © Eugénia da Conceição-Heldt 2011 Softcover reprint of the hardcover 1st edition 2011 978-0-230-27356-6 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted her right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2011 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-32405-7 ISBN 978-0-230-30699-8 (eBook) DOI 10.1057/9780230306998 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. 9780230273566_01_prexviii.indd iv 1/13/2011 8:19:32 PM Contents List of Tables xi List of Figures xii Preface and Acknowledgements xiii List of Abbreviations xv Introduction 1 Overview of the argument 3 Case studies 4 Methodology: selection of the units of analysis 6 Domestic institutions 6 Economic importance of the EU, US, Brazil, and Australia in the WTO 8 Actors’ positions on agricultural trade liberalization 10 Sources 11 Chapters’ overview 12 Part I Setting the Stage 1 Framework for Analysis of Negotiations 17 Two-level games literature and trade policy: an overview 17 International-level explanations 18 Domestic-level explanations: society- and state-centred approaches 19 Domestic institutions 22 Executive–legislative relations 24 Number of veto players 25 Link between parties and interest groups 27 Domestic constraints and international negotiations 28 Integrative and distributive bargaining 28 International level: the time dimension of negotiations 29 Time dimension and concession rates 29 Time pressure: elapsed time and concession rates 30 Best alternative to a negotiated agreement 33 Repetitive games and tough bargaining strategies 34 Conclusion 34 2 Multilateral Agricultural Trade Regime 36 Introduction 36 v 9780230273566_01_prexviii.indd v 1/13/2011 8:19:32 PM vi Contents Evolution of international trade cooperation 36 Uruguay round negotiations 1986–94 38 Inclusion of agriculture in the negotiating agenda 38 First negotiating phase: 1986–8 39 Second negotiating phase: 1989–90 40 Final negotiating phase: 1991–3 41 Agreement on agriculture of the Uruguay round 42 Market access 42 Export subsidies 43 Domestic support and the system of boxes 44 Impact of the agreement on agriculture on domestic support 45 Conclusion 46 Part II Domestic Institutions 3 US Trade Politics 51 Introduction 51 Power delegation in US trade politics 53 Reciprocal Trade Agreements Act of 1934 and beyond 54 Failure to ratify the International Trade Organization charter 54 Trade Expansion Act and Trade Adjustment Assistance of 1962 55 Enactment of fast track negotiating authority in 1974 57 Strengthening congressional oversight in the 1980s 58 Current provisions of fast track negotiating authority 59 Ex ante congressional oversight procedures 60 Ex post control mechanisms 62 Link between parties and campaign contributions of interest groups 62 Campaign contributions of farm organizations 64 Campaign contributions of commodity producer groups 65 US agricultural subsidies and international trade 67 US veto players 1999–2006 70 Conclusion 70 4 EU Trade Politics 73 Introduction 73 Institutional structure of the EU political system 75 Evolution of EU trade politics 78 Delegation of power and control mechanisms 79 Ex ante control mechanisms: the negotiating mandate 80 Control mechanisms at locum: the 133 Committee 81 Ex post control: voluntary and involuntary defection 82 Actors’ positions on agricultural trade liberalization 83 Member states 83 9780230273566_01_prexviii.indd vi 1/13/2011 8:19:32 PM Contents vii European Commission 85 Farmer and business groups 86 Domestic-level institutions in France 87 Structure of the executive 87 Link between parties and farmer groups 88 The Common Agricultural Policy and international trade 90 Conclusion 92 5 Brazilian Trade Politics 94 Introduction 94 Brazilian trade politics 95 National economic development model 1930–45 95 Trade politics under democratic governments 1946–64 95 Protectionist industrialization model 1964–85 96 Adoption of a more liberal trade policy after 1985 97 Decision-making process in trade policy 98 High party fragmentation 99 Link between parties and interest groups 102 Veto players in Brazil 1999–2006 103 The Brazilian agricultural sector 106 Conclusion 106 6 Australian Trade Politics 109 Introduction 109 Australian trade politics 110 Australia’s trade dependence on Great Britain until 1956 110 Trade policy of Liberal-Country governments 1956–72 110 First tariff reductions of the Labor government 1972–5 111 Increasing protection under Liberal-National governments 1975–83 112 Multilateralism under Labor governments 1983–96 113 Bilateralism under Liberal-National governments 1996–2007 114 A ‘Westminster-inspired’ democracy 115 Decision-making process in trade policy 116 Link between parties and interest groups 117 Veto players in Australia 1999–2006 118 The Australian agricultural sector 120 Conclusion 120 Part III Negotiating Trade Liberalization 7 Seattle Ministerial Conference 1999 125 International-level negotiations 125 Identification of issues and the initial negotiating positions of the actors 125 9780230273566_01_prexviii.indd vii 1/13/2011 8:19:32 PM viii Contents Deep divisions and no time pressure to make concessions 125 Domestic institutions 128 United States 128 Failure to renew fast track negotiating authority under a divided government 128 Position of interest groups 129 European Union 130 1999 CAP reform and WTO negotiations 130 European Commission’s negotiating mandate 131 Council–Commission relationship 131 Position of interest groups 132 Brazil 133 Informal consultations in trade policy 133 Parliamentary discussion on the Brazilian negotiating position 133 Position of interest groups 134 Australia 135 Anti-globalization campaign of the One Nation Party 135 Position of interest groups 135 Conclusion 136 8 Doha Ministerial Conference 2001 139 International-level negotiations 139 A first assessment of actors’ negotiating positions 139 Doha ministerial conference 9–14 November 2001 141 Doha ministerial declaration on agriculture 142 Time framework for the Doha round 143 Domestic institutions 143 United States 143 Congressional negotiations on new trade and farm bills 143 Major provisions of the 2002 Trade Promotion Authority bill 146 Positions of major interest groups on the new trade bill 147 European Union 147 Council–Commission relationship 147 Brazil 148 Parliamentary discussion on trade liberalization 148 Australia 148 Establishment of the WTO Advisory Group 148 Conclusion 149 9 Cancun Ministerial Conference 2003 152 International-level negotiations 152 Presentation of detailed negotiating proposals 152 The Harbinson text: trying to find a middle ground 153 EU–US joint proposal and the emergence of the G-20 155 9780230273566_01_prexviii.indd viii 1/13/2011 8:19:32 PM Contents ix Cancun ministerial meeting 10–14 September 2003 157 Domestic institutions 159 United States 159 The 2002 farm bill: increasing domestic support 159 Implications of the 2002 farm bill for WTO negotiations 159 Congressional reaction to the G-20 coalition 160 Position of major agricultural groups with respect to the G-20 demands 160 European Union 160 Modification of the Commission’s negotiating mandate 160 The 2003 CAP reform: decoupling direct payments from production 161 Reaction of major agricultural groups to the CAP reform 163 Implications of the CAP reform for WTO negotiations 163 Brazil 164 A new heterogeneous governing coalition 164 Lula da Silva’s trade policy 165 Workers’ Party position on trade liberalization 165 Parliamentary discussion on the Brazilian negotiating position 166 Divisions within the governing coalition on the G-20 167 Australia 167 Shift towards bilateral trade agreements 167 Free trade agreement with the US 168 Farmers’ organizations position on the free trade agreement 170 Conclusion 170 10 Hong Kong Ministerial Conference 2005 173 International-level negotiations 173 US and EU initiatives to move negotiations forward 173 The July 2004 framework for agriculture 174 Informal meetings and impasse in negotiations 176 Presentation of new detailed negotiating proposals 176 Hong Kong ministerial conference 13–18 December 2005 180 Settlement of new deadlines 182 Domestic institutions 182 United States 182 Signature of the Central America Free Trade Agreement 182 Congressional discussions on the US negotiating position 183 Positions of farmer groups on the US negotiating position 184 European Union 186 Member states’ reaction to the Lamy-Fischler initiative 186 Nomination of a new European Commission 186 Conflictual Council-Commission relationship 187 9780230273566_01_prexviii.indd ix 1/13/2011 8:19:32 PM
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