Termites in the Trading System: How Preferential Agreements Undermine Free Trade

160 Pages·2008·1.07 MB·English

by  Jagdish Bhagwati

Termites in the
Trading System
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JAGDISH BHAGWATI
Termites in the
Trading System
How
Preferential
Agreements
Undermine
Free Trade
A Council on Foreign Relations Book
1
2008
1
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LibraryofCongressCataloging-in-PublicationData
Bhagwati,JagdishN.,1934–
Termitesinthetradingsystem:howpreferentialagreements
underminefreetrade/JagdishBhagwati.
p.cm.
Includesbibliographicalreferencesandindex.
ISBN978-0-19-533165-3
1. Tariffpreferences. 2. Tradeblocs. 3. Freetrade.
4. Commercialpolicy. 5. Internationaltrade.
I. Title:Preferentialagreementsunderminefreetrade. II. Title.
HF1721.B432008 382'.71—dc22 2007052420
9 8 7 6 5 4 3 2 1
PrintedintheUnitedStatesofAmerica
onacid-freepaper
In memory of Gottfried Haberler
A great international economist
and multilateralist
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Every additional PTA [preferential trade agreement] will become
one moreobstacleto theuniversal and non-discriminatory trade
liberalization thatthe world needs. PTAs havebeen more easily
hijacked byspecial interest groups andarenot resultingin really good
instruments....Thepresentdealsarelittle monstersthatwill be much
regrettedin the future.
—Ernesto Zedillo, formerpresident of Mexico
In practice, bilateralism has fed off itself, intensifying the rush into
preferentialdealswhile draining energy from the Doha talks.
—Guy de Jonquie`res,
world trade correspondent, Financial Times
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Contents
Preface xi
chapter 1
Proliferating Preferential
Trade Agreements 1
chapter 2
Why Has the Pandemic Broken Out? 15
chapter 3
Why PTAs Are a Pox
on the World Trading System 49
chapter 4
What Do We Do Now? 89
Appendix 101
Glossary 113
Select Bibliography 123
Index 127