Subsidy Regulation and State Transformation in North America, the GATT and the EU

224 Pages·1997·21.039 MB·English

by  Robert O’Brien (auth.)

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Subsidy Regulation and
State Transformation in
North America, the
GATT and the EU
Robert O'Brien
Lecturer in International Relations
University of Sussex
Brighton
First published in Great Britain 1997 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS and London
Companies and representatives throughout the world
A catalogue record for this book is available from the British Library.
ISBN 978-1-349-25832-1 ISBN 978-1-349-25830-7 (eBook)
DOI 10.1007/978-1-349-25830-7
First published in the United States of America 1997 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue, New York, N.Y. 10010
ISBN 978-0-312-17513-9
Library of Congress Cataloging-in-Publication Data
O'Brien, Robert, 1963-
Subsidy regulation and state transformation in North America, the
GAIT and the EU / Robert O'Brien.
p. cm. - (International political economy series)
Includes bibliographical references and index.
ISBN 978-0-312-17513-9 (cloth)
1. Subsidies-United States. 2. Subsidies-Canada. 3. General
Agreement on Tariffs and Trade (Organization) 4. Subsidies
-European Union countries. I. Title. II. Series.
HC 110.59027 1997
338.9'22-dc21 97-7120
CIP
© Robert O'Brien 1997
Softcover reprint of the hardcover I st edition 1997
All rights reserved. No reproduction, copy or transmission of this publication may be made
without written permission.
No paragraph 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, 90 Tottenham Court Road, London WI P 9HE.
Any person who does any unauthorised act in relation to this publication may "be liable to
criminal prosecution and civil claims for damages.
The author has asserted his right to be identified as the author of this work in accordance
with the Copyright, Designs and Patents Act 1988.
This book is printed on paper suitable for recycling and made from fully managed and
sustained forest sources.
10 9 8 7 6 5 432 1
06 05 04 03 02 01 00 99 98 97
To my parents and Angela
Contents
Acknowledgements ix
Abbreviations x
Introduction xi
Globalization, the State and Subsidies 1
Globalization 1
The State 12
Subsidies 17
2 The US Trade Law System 21
Trade and Protectionism 21
The CVD Process 31
3 National Origins of Canada-US Subsidy Conflicts 42
Liberal by Degree 42
National Security 46
Regional Development 50
Subnational Economic Policies 54
Culture 57
Social Programs - Health Care 61
Subsidies and the Past 65
4 Subsidies and the Free Trade Agreement 67
Market Access 67
Subsidies in the Negotiations 75
5 North American Subsidies in the 1990s 83
Post-FT A Hurdles 83
NAFTA Subsidy Provisions 95
6 Subsidies at the GATT 102
The General Agreement on Tariffs and Trade 103
The Uruguay Round 115
7 Agriculture and Aerospace 126
Down on the Farm 126
Conflict in the Sky 140
vii
viii Contents
8 The Unique European Union Arrangement 147
Policy Evolution 152
More Than a Market 165
9 State Transformation and the Global Political Economy 170
Subsidies, Liberalization and Globalization 170
Transforming the State 173
World Order 178
Notes 185
Bibliography 192
Index 208
Acknowledgments
I first became interested in the issue of subsidy conflicts in 1987 while
working as a parliamentary intern in the Canadian House of Com
mons. Over the past decade numerous people helped me pursue the
subject matter, leading to the publication of this book. Members of my
PhD committee from York University will recognize large sections of
the work. Robert Cox, Daniel Drache and David Ley ton-Brown all
took an interest in the project and offered assistance. The Walter Gordon
scholarship at York University facilitated my early field research in
the United States. In Washington I was able to rely upon the assist
ance of Robert Meuser for practical guidance through the trade maze
and physical provision during my research trips. Thanks are also due
to people in the US, Canadian and EU bureaucracies, interest groups
and political parties who took the time to speak to me. The intellec
tual atmosphere stimulated by my new colleagues Zdenek Kavan, John
MacLean, Jan Aart Scholte and Marc Williams at the University of
Sussex helped me look at the same issue in a different light. Angus
Cameron kindly assisted in the preparation of the manuscript. Finally,
my greatest debts are to my parents and to Angela who provided me
with moral support, financial security and the example of a steadfast
work ethic.
IX
Abbreviations
AAA Agricultural Adjustment Act
ACOA Atlantic Canada Opportunities Agency
BCNI Business Council on National Issues
CAP Common Agricultural Policy
CBC Canadian Broadcasting Corporation
CIT Court of International Trade
CMA Canadian Manufacturers Association
CRTC Canadian Radio and Television Commission
CVD Countervailing Duty
DOC Department of Commerce
DREE Department of Regional Economic Expansion
EC European Community
ERDA Economic and Regional Development Agreements
EU European Union
FDI Foreign Direct Investment
FTA Canada-United States Free Trade Agreement
GATT General Agreement on Tariffs and Trade
IMF International Monetary Fund
IR&D Independent Research and Development Program
ITA International Trade Administration
ITC International Trade Commission
ITO International Trade Organization
MOU Memorandum of Understanding
MPEAA Motion Picture Export Association of America
NAFTA North American Free Trade Agreement
NTBs Non-Tariff Barriers
OECD Organization for Economic Cooperation and Development
PEl Prince Edward Island
R&D Research and Development
SOl Strategic Defense Initiative
SEA Single European Act
TNCs Transnational Corporations
UK United Kingdom
US United States
USTR United States Trade Representative
VERs Voluntary Export Restraints
WTO World Trade Organization
x