The Prospects of International Trade Regulation: From Fragmentation to Coherence

Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Figures......Page 10
Tables......Page 12
Contributors......Page 13
Preface and Acknowledgements......Page 19
4. European Patent Office (EPO)......Page 22
5. WTO Panels and Appellate Body......Page 23
7. European Court of Human Rights (ECtHR)......Page 26
(b) Canada......Page 27
Abbreviations......Page 28
Introduction: Fragmentation and coherence in international trade regulation: analysis and conceptual foundations......Page 33
A. The challenges of fragmentation......Page 34
B. Fragmentation in international law......Page 41
C. Fragmentation in WTO dispute settlement......Page 44
I. WTO law coordination......Page 45
II. The role of bilateral and regional agreements......Page 51
III. Decisions by regional international tribunals and res judicata......Page 54
IV. Some tentative concluding remarks......Page 56
D. Conceptual responses to fragmentation......Page 58
I. The hermeneutical approach: systemic legal reasoning and policy coordination......Page 59
II. The constitutionalist approach: systemic governance order and common values......Page 60
III. A third way: The multilayered governance approach – a pragmatic synthesis......Page 65
IV. The fundamental critique: missing societal foundations in international relations......Page 67
E. Insights from legal theory......Page 69
I. The nature and role of law......Page 70
II. The benchmark of effective, efficient and legitimate legal systems......Page 74
III. Coherence as an instrument to enhance effectiveness, efficiency and legitimacy......Page 78
1. Formal consistency: the legalistic model of rules......Page 79
2. Substantial coherence: the constitutionalist model of principles......Page 80
F. Promoting coherence through multilayered constitutionalism......Page 86
Bibliography......Page 88
Part I: Constitutional issues in international trade regulation......Page 99
A. Introduction......Page 101
B. Key concepts and methdodological problems......Page 104
I. Constitutional principles constraining Members......Page 107
II. Democracy......Page 110
III. Rule of law: constitutional principles constraining the WTO......Page 112
IV. (Judicial) constitutionalisation of and through WTO dispute settlement......Page 113
D. The WTO: private or public interest?......Page 115
1. Public interest and private interest......Page 116
2. A communal interpretation of Article XX GATT......Page 117
1. `Public interest’ in limitation clauses and general exception clauses......Page 118
2. A sovereigntist interpretation of Article XXI GATT: a self-judging obligation......Page 119
1. International adjudication on sovereigntist clauses......Page 120
2. A constitutionalist interpretation of exception clauses: accepting national `collective preferences’......Page 121
IV. Preliminary outlook......Page 123
II. Access of private actors to WTO dispute settlement and to domestic courts......Page 124
III. A multilevel judiciary......Page 126
V. Law- and decision-making......Page 127
Bibliography......Page 129
A. Introduction......Page 135
B. Conceptualising a political system: legitimacy and accountability......Page 137
I. Governance elements: member-driven, consensual and single-package oriented......Page 140
II. The WTO Secretariat in international negotiations......Page 141
D. Decision-making from a legal perspective......Page 143
I. Material perspective......Page 144
1. Distinctions in international institutional law......Page 145
3. Distinctions elaborated by Swiss constitutional theory......Page 146
II. Formal perspective......Page 147
III. Designing flexible, non-consensual decision rules......Page 149
I. Demand for trade policy: the missing exporters’ coalitions and the changing nature of import-competing group lobbying......Page 150
II. Constructing an analytical framework for corporate trade policy interests......Page 151
III. Comparing textile industries’ interest aggregation......Page 153
F. Decision-making across competing authorities......Page 155
I. The WTOs judicial interactions across intergovernmental organisations......Page 156
1. Linkage through deference......Page 157
2. Linkage through incorporation of other international arrangements......Page 158
3. Presumptive exceptions and the adjudication of competing values......Page 159
II. Various logics of horizontal interaction......Page 160
Bibliography......Page 162
A. Introduction......Page 168
B. The reality of RTAs......Page 170
1. The first wave of regionalism......Page 171
2. The second wave of regionalism......Page 172
III. A snapshot of today's regionalism......Page 174
IV. Regionalism in the regions......Page 176
1. Complexity multipliers......Page 177
V. Spaghetti bowl in services and non-tariff barriers......Page 178
1. The threat of pervasive regionalism......Page 180
2. The threat to norms......Page 181
3. Regionalism as Plan B......Page 182
D. Towards coherence......Page 183
I. WTO-led ideas enhancing coherence......Page 184
1. WTO soft-law disciplines on RTAs......Page 185
2. More ambitiously, negotiate a level of RTA discipline that was in between that of Article XXIV and the Enabling Clause.......Page 186
2. New sectoral free trade agreements......Page 187
1. Plurilateralise rules of origin and cumulation......Page 189
3. Development friendly ROOs and cumulation......Page 191
E. Conclusion......Page 192
Part II: Reforming specific areas of trade regulation......Page 199
A. Introduction......Page 201
B. What is sustainable agriculture?......Page 203
I. Doha Round problems with sustainable agriculture......Page 206
II. The evolving debate on sustainable agriculture, trade liberalisation and food security......Page 207
I. Stakeholder surveys in Switzerland, New Zealand, Turkey and China......Page 209
1. Agricultural policies in New Zealand and Switzerland......Page 210
2. Survey results and interpretation......Page 211
1. Agricultural policies in Turkey and China......Page 213
2. Survey Results and Interpretation......Page 214
1. Switzerland and New Zealand......Page 215
2. Turkey and China......Page 218
II. Policy space and WTO disciplines......Page 220
I. WTO Disciplines......Page 222
1. Trade impact assessments......Page 223
2. Free access for all products of least developed countries?......Page 224
III. Food security and trade......Page 225
IV. The potential of geographical indications for rural development......Page 227
1. Facilitating entrepreneurship and technological innovation in agriculture......Page 228
2. Best practices......Page 230
3. The role of public–private partnerships......Page 233
F. Concluding remarks......Page 235
References......Page 237
A. Introduction......Page 243
I. Oil, gas and coal......Page 245
II. Electricity......Page 246
III. WTO and other instruments of international energy law......Page 247
2. Energy Charter Treaty......Page 248
4. Multilateral environmental agreements......Page 249
5. Regional level: European Union (EU) and North American Free Trade Agreement (NAFTA)......Page 250
V. Unresolved and controversial issues......Page 251
I. Towards a WTO Framework Agreement on Energy......Page 253
II. The basic classification of energy and energy services......Page 254
2. Reform of classification of energy services......Page 255
1. Renewable energy and the WTO law of subsidies......Page 257
2. Emissions trading and subsidies: the experience of the European Union......Page 260
IV. Energy production controls and export restrictions (OPEC)......Page 265
1. Production controls versus export restrictions......Page 266
2. Restrictions made effective through state-trading operations......Page 267
4. Lack of competition rules in WTO......Page 268
5. Conclusion......Page 269
2. GPP and the trade concerns......Page 270
3. GPP and the environmental exceptions......Page 271
Bibliography......Page 273
6 Developing trade rules for services: a case of fragmented coherence?......Page 277
I. Context......Page 278
2. Disciplining non-discriminatory regulatory conduct......Page 279
4. Investment rules for services......Page 280
III. Preferentialism......Page 281
B. Tackling non-discriminatory regulatory conduct in services......Page 283
I. The draft disciplines on domestic regulation......Page 284
II. The unavoidable adoption of a necessity test......Page 286
IV. Concluding remarks and practical issues......Page 289
I. The standard of `likeness’ in GATS non-discrimination......Page 290
II. The supplier–service relationship......Page 293
III. A Comparative approach to the interpretation of `likeness’ in GATS......Page 295
I. Introduction......Page 296
1. MFN and NT......Page 297
2. Fair and equitable treatment and domestic regulation obligations......Page 299
III. Defragmenting international economic rules through coherent interpretation......Page 302
II. GATS Mode 4......Page 303
1. Immigration law caveat of the Annex on MONP......Page 305
2. What can GATS Mode 4 learn from new-generation bilateral agreements on the joint regulation of migratory flows?......Page 306
1. Regulatory source country obligations on return and reliability of workforce?......Page 307
F. Concluding remarks......Page 310
Bibliography......Page 312
7 Challenges of biotechnology in international trade regulation......Page 316
A. Introduction......Page 318
B. The impact of human rights......Page 319
C. Intellectual property and competition......Page 321
I. Human genetic inventions and the harmonisation of patent rules......Page 324
II. Animal genetic resources, IPRs and genetic diversity......Page 328
III. Research and patent law: an international research exemption?......Page 333
D. Analysis of biotechnology risks......Page 334
I. Risk analysis in general......Page 335
II. Main approaches and differences......Page 336
1. Internationalising risk assessment......Page 337
2. Domestic risk management......Page 338
3. Socio-economic considerations as part of risk management......Page 339
5. The interplay of international risk assessment and domestic risk management......Page 340
6. Introducing risk communication......Page 341
E. Liability rules in biotechnology......Page 342
1. Fragmentation in state responsibility......Page 343
3. Fragmentation of international civil liability rules......Page 344
III. Conclusions and recommendations......Page 346
F. Conclusion......Page 348
Bibliography......Page 349
Part III: `Trade and…’ linkages......Page 353
A. Introduction......Page 355
B. Creating the commitment: a decision on trade and human rights as a starting point and normative guideline......Page 358
I. ...Recognising that human rights concerns are inextricably linked to free trade and convinced that trade liberalisation can foster the advancement of human rights......Page 359
IV. ...Concerned that international trades impact on some individuals has lessened rather than increased their enjoyment of basic human rights and that trade rules may form a hindrance to the full enjoyment of human rights and progressive development of human rights law......Page 360
V. ...Aware that private actors can significantly affect the conditions necessary for fulfilling human dignity and reaffirming the duty of the State to protect all human rights from abuses by, or involving, business enterprises......Page 364
VI. ...Accepting the United Nations’ human rights approach to trade, that `seeks trade law and policy that take into account the rights of all individuals, in particular vulnerable individuals and groups’ and `requires a constant examination of the impact of trade liberalization on the enjoyment of human rights’......Page 365
VII. ...Noticing the Singapore Declaration's `commitment to the observation of internationally recognized core labour standards’ as well as the statement in the Declaration on Social Justice for a Fair Globalization of the International Labour Organization that the `violation of fundamental principles and rights at work cannot be invoked or otherwise used as a legitimate comparative advantage’......Page 366
VIII. ...Noting that carefully drafted trade incentive regimes may advance the cause of human rights......Page 368
1. Lessons from the US GSP......Page 369
IX. ...that the World Trade Organization shall fully respect the international law of human rights and support their full enjoyment......Page 370
XI. ...that a Multilateral Agreement on Trade and Human Rights is to be negotiated, providing appropriate instruments to foster the cause of mutually supportive regimes, institutional and legal coherence and the full enjoyment of all human rights......Page 371
I. Policy coordination......Page 372
II. Dispute settlement......Page 373
I. Trade law and the right to food......Page 376
II. Trade in services and human rights......Page 379
1. The relationship between corruption and human rights......Page 380
2. Corruptions effects on trade......Page 381
3. Corruptions effects on the trade and human rights relationship......Page 382
IV. Trade incentive regimes for human rights......Page 384
2. Developing criteria for GSPs under a multilateral framework......Page 385
Bibliography......Page 386
9 The protection and promotion of cultural diversity in a digital networked environment: mapping possible advances towards coherence......Page 391
B. The discourse of trade and culture......Page 392
I. The WTO framework......Page 394
II. The UNESCO Convention on Cultural Diversity......Page 398
D. Need to broaden the picture due to the new digital reality......Page 402
E. Access as a new focal point of the cultural diversity debate......Page 405
I. Access to infrastructure......Page 406
1. The availability and organisation of information......Page 409
2. Intellectual property rights......Page 410
F. Conclusions: from fragmentation to coherence?......Page 414
Bibliography......Page 418
10 Development and stability in the nexus between trade and finance......Page 426
A. Introduction and motivation......Page 427
B. Financial development......Page 431
C. Financial stability......Page 434
D. Coherence in the regulation of the international financial system......Page 437
E. The global financial crisis and possible areas of reform......Page 441
F. Summary and conclusion......Page 445
Bibliography......Page 447
11 The regulatory framework of international investment: the challenge of fragmentation in a changing world economy......Page 449
A. The regulatory developments in international investment regulation......Page 453
I. The spaghetti bowl at work......Page 454
II. Key issues for achieving a coherent international framework on foreign investment......Page 457
B. The economic development in the international investment arena since 2000......Page 460
I. The regional dimension of FDI......Page 461
II. The increase of FDI from emerging countries......Page 462
III. The rise of FDI by state-controlled entities......Page 466
C. Trade and investment developments under the European Union lens......Page 471
I. Towards a European Union external investment policy......Page 472
II. The Sino-European framework for investment......Page 474
III. The European Union approach toward sovereign investments......Page 477
D. Conclusions......Page 479
Bibliography......Page 480
12 Low-income countries and commodity price volatility......Page 484
A. Introduction......Page 485
I. Portfolio investment and price behaviour on futures markets......Page 489
II. Price transmission along coffee chains......Page 492
I. Tanzania coffee and cotton fieldwork: main findings......Page 493
D. Exchange rate policy and macroeconomic management: the case of Zambia......Page 496
I. Relevance of mine ownership......Page 497
II. Exchange rate management......Page 500
III. Commodity currency......Page 502
E. Commodity price volatility, trade shocks, and compensatory finance......Page 503
II. Proposal for a contingency debt sustainability framework......Page 505
III. A case study of Uganda......Page 508
F. Concluding remarks......Page 510
Bibliography......Page 511
Index......Page 515