Preferential Trade Agreement Policies for Development: A Handbook

CONTENTS......Page 7
Foreword......Page 13
Acknowledgments......Page 15
About the Editors and Contributors......Page 17
Abbreviations......Page 19
Overview......Page 23
1 Beyond Market Access......Page 39
2 Landscape......Page 59
3 Economics......Page 91
4 North-South Preferential Trade Agreements......Page 117
5 Customs Unions......Page 133
6 Preferential Trade Agreements and Multilateral Liberalization......Page 143
7 Agriculture......Page 165
8 Preferential Rules of Origin......Page 183
9 Trade Remedy Provisions......Page 201
10 Product Standards......Page 219
11 TBT and SPS Measures, in Practice......Page 239
12 Services......Page 257
13 Labor Mobility......Page 297
14 Investment......Page 329
15 Trade Facilitation......Page 349
16 Competition Policy......Page 369
17 Government Procurement......Page 389
18 Intellectual Property Rights......Page 409
19 Environment......Page 429
20 Labor Rights......Page 449
21 Human Rights......Page 465
22 Dispute Settlement......Page 489
Index......Page 525
2.1 Typology of Preferential Trade Agreements......Page 60
6.1 Is Bilateralism Bad?......Page 145
7.1 The WTO Agreement on Agriculture......Page 168
9.3 Global Safeguards Template......Page 208
9.4 Bilateral Safeguards Template......Page 209
10.2 Proliferation and Growing Importance of Product Standards......Page 220
10.3 Do Voluntary Standards Have Cost Effects, Too?......Page 223
10.4 Inventory Methods versus Direct Measures of Restrictiveness......Page 225
10.5 Facilitating Market Access: Harmonization, Equivalence, and Mutual Recognition......Page 226
10.6 Trade Effects of Harmonization: Empirical Evidence......Page 227
10.1 Prevalence of Harmonization and Mutual Recognition in Preferential Trade Agreements......Page 229
10.8 How Small ASEAN Countries Manage to Access Certification and Accreditation Services......Page 231
10.9 The Codex Alimentarius and Preferential Trade Agreements......Page 235
11.1 WTO Standards and Guidelines on TBT and SPS Measures......Page 240
11.2 Success Story: Orchids to Australia......Page 246
11.3 Impact of SPS Measures in the China-New Zealand PTA......Page 248
11.5 Using the PTA’s Living Agreement Institutions for Capacity Building: An Example......Page 252
11.6 Dispute Settlement of TBT and SPS Measures in the WTO and within the Andean Community......Page 253
12.1 WTO+ and WTO-Extra Provisions in U.S. and EU PTAs......Page 263
12.2 Harmonization and Mutual Recognition in Services: Promise and Pitfalls......Page 270
12.3 PTAs and Digital Trade......Page 281
12.4 Tourism Liberalization in the EU–CARIFORUM EPA......Page 282
12.5 Cultural Cooperation and Aid for Trade in the EU–CARIFORUM EPA......Page 285
13.1 Labor Mobility in Statistical Terms......Page 299
13.3 Theoretical Effect on Developing Countries of Liberalization of Mode 4......Page 301
14.1 Total Number of PTAs and Number with Investment Provisions, 1970–2009......Page 330
15.1 Definition and Scope of Trade Facilitation in Selected PTAs......Page 350
15.2 Trade Facilitation and the WTO......Page 351
15.3 The Trans-Kalahari Corridor......Page 352
15.4 Mercosur’s Transit and Cross-Border Transport Agreement......Page 361
16.1 Competition Policy and International Cooperation......Page 378
17.1 Persistence of Discrimination: Procurement Practices and the Global Economic Crisis......Page 391
17.2 Three International Government Procurement Instruments......Page 394
17.3 Examples of Flexible Provisions in Government Procurement PTAs......Page 397
18.1 Patent-Registration Linkage and Test Data Protection: The Case of Chile......Page 416
19.1 Considerations for Developing Countries in Negotiating PTAs......Page 434
20.1 Sweatshop Scandal Insurance for Brand-Name Buyers......Page 451
20.2 Labor Rights and the WTO......Page 452
20.3 NAFTA as a Tool for Promoting Rights of Mexican Migrants in the United States......Page 460
20.4 Responding to a Sweatshop Scandal through Capacity Building and Monitoring......Page 461
21.1 Transparency, Due Process, and Democracy Spillovers from the WTO......Page 470
22.1 The Protocol of Olivos......Page 504
1.1 Most Favored Nation (MFN) Tariff Rates, Weighted Mean, All Products......Page 42
2.2 All PTAs Notified to the GATT/WTO, by Year of Entry into Force, 1949–2009......Page 62
2.4 PTAs Notified to the GATT (Pre-1995) and the WTO (Post-1995), by Legal Provision......Page 63
2.6 Number of PTAs under Negotiation and Signed, by Type of Partner, as of February 2010......Page 65
2.8 Cross-Regional and Intraregional PTAs Notified to the GATT/WTO......Page 66
2.9 PTAs, by Region and by Year of Entry into Force, 2000–09......Page 67
2.11 PTAs in Force and under Negotiation by Selected Countries and Groupings, as of February 2010......Page 68
2.12 Issues Covered in Regional Trade Agreements, 1989–2009......Page 69
2.13 Participation in Notified PTAs as of February 2010 (Goods)......Page 71
2.14 Participation in Notified EIAs as of February 2010 (Services)......Page 72
2.15 Network of Plurilateral Groupings in Europe and Central Asia......Page 73
2.16 Network of Plurilateral Groupings in the Americas and the Caribbean......Page 74
2.17 Network of Plurilateral Groupings in South Asia, East Asia, and the Pacific......Page 75
2.18 Network of Plurilateral Groupings in Africa and the Middle East......Page 76
2.19 Evolution of the Share of Intra-PTA Imports in Total Imports, 1970–2008......Page 80
2.20 Evolution of the Share of Intraregional Trade in Gross Domestic Product, 1970–2008......Page 82
2.22 Proportion of Tariff-Free Imports as a Share of Total Imports, All Goods, Selected PTAs and Periods......Page 84
2.23 Percentage Changes in Trade from Entry into Force of a Preferential Trade Agreement to 2008, Based on Gravity Model Estimates......Page 85
3.1 Trade Pattern for a Simple Preferential Trade Association......Page 92
3.2 Trading Equilibriums in a Preferential Trade Association......Page 93
3.3 Ambiguous Net Welfare Effects......Page 94
3.5 Welfare Effects of Preferential TBT Liberalization: Viner’s Ambiguity Vanishes......Page 95
3.6 Competition (COMP) and Break-Even (BE) Curves......Page 96
3.7 Prices, Output, and Equilibrium Firm Size in a Closed Economy......Page 97
3.8 Prices, Output, and Equilibrium Firm Size with Integration......Page 99
3.9 Welfare Effects of Complete Liberalization......Page 100
3.10 Demand-Linked Circular Causality......Page 101
3.11 Input-Cost-Linked Circular Causality......Page 102
3.12 Locational Equilibrium Diagram......Page 103
3.14 Trade Arrangements and Industrialization......Page 104
3.15 Location of Japanese Auto and Electrical Machinery Plants in East Asia, 1975–2004......Page 107
3A.1 Johnson’s Diagram, Small Home and Partner Countries......Page 109
3A.2 The Small PTA Diagram: A Simple Case......Page 110
3B.1 Monopoly Profit Maximization......Page 112
3B.3 Duopoly and Oligopoly: Expectation-Consistent Outputs......Page 113
6.2 Relationship between MFN Tariffs and Home Welfare......Page 147
6.3 Juggernaut Logic......Page 149
6.4 Juggernaut Building Block Logic......Page 150
6.5 Imported MFN Liberalization......Page 153
6.6 An Economic Theory of the GATT......Page 154
8.1 Restrictiveness (R-Index) of Rules of Origin in Free Trade Agreements......Page 193
9.1 Hub-and-Spoke and Cross-Regional Arrangement of PTAs......Page 210
9.11 Antidumping Activity, by PTA Status......Page 216
10.1 Elements of a Standards Infrastructure......Page 222
12.2 Services-Related PTAs Notified to the WTO, by Country Group......Page 258
12.3 Sectoral Coverage of PTAs and of GATS Offers and Schedules, Selected Countries......Page 279
12.4 GATS+ Advances in East Asian PTAs with Services Provisions, by Sector......Page 283
12.5 GATS+ Advances in East Asian PTAs with Services Provisions, by Mode......Page 284
12A.1 GATS and EU–CARIFORUM Commitments Compared: Barbados......Page 288
12A.2 GATS and EU–CARIFORUM Commitments Compared: Dominican Republic......Page 289
12A.3 GATS and EU–CARIFORUM Commitments Compared: Jamaica......Page 290
12A.4 GATS and EU–CARIFORUM Commitments Compared: Trinidad and Tobago......Page 291
13.1 Theoretical Gains from Liberalization of Mode 4......Page 300
13A.1 Provisions on Mode 4 in PTAs between the United States and Developing Countries......Page 322
13A.2 Provisions on Mode 4 in PTAs between Canada and Developing Countries......Page 323
13A.4 Provisions on Mode 4 in PTAs between Japan and Developing Countries......Page 324
13A.5 Provisions on Mode 4 in PTAs between Australia and New Zealand and Developing Countries......Page 325
13A.6 Provisions on Mode 4 in PTAs between Developed and Developing Countries......Page 326
17.1 PTAs Containing Government Procurement Provisions, 2009......Page 393
1.1 Types and Scope of Regulatory Objectives in Selected Areas Covered by Trade Liberalization Agreements......Page 51
2.1 Deep Commitments in Selected EU and U.S. PTAs, by Type of Provision......Page 70
2.3 Estimation Results of the Gravity Model of the Average Trade between Two Partners, Selected PTAs......Page 83
2A.1 Membership of Selected Plurilateral Preferential Trade Agreements......Page 86
3.1 ASEAN Tariffs on Engines and Automobiles, Most Favored Nation (MFN) Tariffs and Common Effective Preference Tariffs (CEPTs), 2008......Page 106
3.2 Intraindustry Trade as a Share of Internal and External Trade of PTAs......Page 108
4.1 European Union (EU) Instruments and EU and National Objectives......Page 128
5.1 Selected Customs Unions, in Force and Planned......Page 134
7.1 Summary of Provisions Affecting Agriculture in NAFTA, U.S.–Chile, U.S.–Australia, and CAFTA Agreements......Page 178
8.1 Summary of Methods for Determining Origin......Page 186
9.1 Trade-Contingent Initiations and Measures in PTAs, 1995–2007......Page 203
9.2 Contingent Protection Rules in Selected PTAs......Page 204
9.3 Characteristics of PTAs......Page 206
9.4 Summary of Contingent Protection Rules in PTAs......Page 207
9.6 Antidumping Template for Selected PTA Hubs......Page 211
9.7 Countervailing Duties Template for Selected PTA Hubs......Page 212
9.8 Global Safeguards Template for Selected PTA Hubs......Page 213
9.9 Bilateral Safeguards Template for Selected PTA Hubs......Page 214
9.10 Characteristics of PTAs That Have Disallowed Trade Remedies......Page 215
10.2 Content of Preferential Trade Agreements Relating to Provisions on Standards......Page 230
11.1 Comparison of Main Features Relating to TBT and SPS Measures, 11 PTAs......Page 241
12.1 Key Disciplines in PTAs That Cover Services......Page 266
12.2 Negotiating Approaches in Services Trade......Page 275
12.3 Key Features of PTAs That Cover Services......Page 277
12.5 GATS Commitments, GATS DDA Offers, and “Best” PTA Commitments for All Members Reviewed, Selected Sectors......Page 280
12A.1 Preferential Trade Agreements (PTAs) That Include Provisions on Trade in Services......Page 286
12A.2 Classification of Preferential Trade Agreements (PTAs) Featuring Services Provisions by Country Group......Page 287
13.1 Bilateral Labor Agreements with Developing-Country Partners: Government Programs for Temporary Workers......Page 310
13A.1 Quantitative Estimates of Gains from Increased Labor Mobility......Page 314
13A.2 Agreements between the United States and Developing Countries......Page 315
13A.3 Agreements between Canada and Developing Countries......Page 316
13A.4 Agreements between the European Union and Developing Countries......Page 317
13A.5 Agreements between Japan and Developing Countries......Page 318
13A.6 Agreements between Australia and New Zealand and Developing Countries......Page 319
14A.1 Overview of Recent PTAs Covering Investment......Page 344
14A.2 Selected Empirical Studies on the Impact of Bilateral Investment Measures......Page 346
15.1 Functions of Selected Corridors......Page 360
16.1 Cartel Overcharges and Deterrent Effect, Vitamin Industry, 1990s......Page 376
16.2 Models of Regional Competition Regimes......Page 379
18.1 U.S. Free Trade Agreement (FTA) Landscape......Page 412
18.2 Principal TRIPS+ Provisions in U.S. Free Trade Agreements (FTAs) Ratified between 2001 and 2006......Page 414
18.3 European Union (EU) Preferential Trade Agreements (PTAs) and Economic Partnership Agreements (EPAs)......Page 420
20.1 Sanctions Authorized for Labor Violations in U.S. Preferential Trade Agreements......Page 458
21.1 Examples of Human Rights Embedded in PTAs: Demandeurs and Position of Provisions in Agreement......Page 467
21.2 The Universal Declaration on Human Rights and Its Two Covenants......Page 468
21.3 Examples of Avenues and Actions at the WTO Related to Human Rights, 2005–10......Page 469
21.4 Human Rights in Preferential Trade Agreements: Comparing EFTA, the EU, the United States, and Canada......Page 471
21.5 Examples of Human Rights Embedded in Preferential Trade Agreements......Page 472