trade institutions

7/23/2019 Trade Institutions

http://slidepdf.com/reader/full/trade-institutions 1/163

Business Strategy and Policy

GLOBAL

BUSINESS

INSTITUTIONS

What kind of institutions do support internationalisation?

Among various institutions that support internationalisation, an

important role is played by the

Chambers of Commerce Abroad

They are business associations established as private sector

organisations, based on the principle of freedom of association,

and that operate for the interests of their members without any

obligation to assist the government (i.e., CCA are akin to so

called !Anglo"a#on model! rather than !Continental model! CC$.

Among various institutions that support internationalisation, an

important role is played by the

Chambers of Commerce Abroad

They generally originate from the spontaneous gathering of

businessmen and%or business company e#ecutives based in the

same local area within foreign countries, that later apply for

recognition of CCA status from home country public authorities

or home national association of CC.

The CCA play a silent albeit substantive role in trying to shape

institutions and regulations of foreign markets (e.g., Amcham

&elgium' Cowles, ))*, +, and -eterson and Cowles, ))$,

although they have not been largely researched so far.

The CCA perform various activities/

influencing economic and social actors for creating and sei0ing

new business opportunities,

working with rule-making organisations that affect international

trade and foreign investments,

preventing potential conflicts with stakeholders and

minimising political risk,

and actively engaging the media and other public arenas for

safeguarding image and reputation of their members.

The meaning of what they do 1 sometimes labelled 2business

diplomacy3 1 can be better defined by drawing some conceptual

boundaries between their activities and those of other related

concepts (4akoff, )5$.

6. What kind of institutions do support internationalisation?

Field ofactivity

Organisationalvenues

Desiredperformance

Obectives ofthe activity

!ode ofoperation

"ole ofactor#s$

Diplomacy(4ee and7udson,+8' "atow,)5' "aneret al., +$

9ntergovernmental The pursue ofpeaceful means forconducting businessbetween states

To build and sustainpositive andconstructive relationsbetween states

Advising, organising,negotiating, informationgathering and analysis,rules compliance,ambiguity handling

:acilitators

%conomic&commercial

diplomacy(;ana, ++'4loyd, +<'Coolsaet,+8' =eung,+8$

9ntergovernmentalor business

government

The pursue ofeconomic gains and

advantages forcountries

To promote e#ports,attract inward foreign

investments, andstimulate othereconomic activities

Advising, networking,negotiating, gathering

information andanalysing it, and conflicthandling

-rofessional!salesmanship!

Businessdiplomacy("aner et al.,

9ntergovernmentalor businessgovernment

The pursue ofeconomic gains andadvantages for

business companies

To establishfavourable conditionsfor business

companies! activities

Creating and sei0ingbusiness opportunities,safeguarding image and

reputation of businesscompanies, affectingrulemaking, conflictprevention

>ntrepreneurial broker

Publicrelations(7utton,)))'&ernays,)66' 7arlow,

9nterorganisationalor personal

The pursue of theinterests of theorganisation or ofthe public

To actively reapopportunities or reactto threats

Communicating,cooperating, issuemanagement, gatheringinformation,defining responsibilities,embrace change,

anticipate trends.

"trategicrelationshipmanagers

4et us look at CCA established by four main > countries...

'ermany (@ie @eutschen Auslandshandelskammern, A7$

about 8, companies associated in countries

France (nion des Chambres de Commerce et d!9ndustrie :ranBaises

l!>tranger, CC9:>$

about +6, companies associated in 5 countries

(taly (Assocamereestero$

about +8, companies associated in 8) countries

)he *+ (&ritish Chambers of Commerce Abroad$

in over ) countries

in 6 Asian countries (&angladesh, Cambodia, China, 9ndia, 9ndonesia,

Dapan, "outh orea, 4aos, Ealaysia, -hilippines, "ingapore, "ri 4anka,

Taiwan, Thailand, Fietnam$

Country of origin

Host 'ermany France )he *+ (taly

Bangladesh ))* ))

Cambodia ))

China ) ))+ )s ()6s$ ))

,ong +ong G.A. )* G.A. ))5 ())<$

(ndia G.A. )55 G.A.

(ndonesia )5 ()+8$ )5) ))s

apan G.A. ) )6s )5+

South +orea ) )* )55 +s

!alaysia G.A. )) )*8

Philippines G.A. )) ))5 +

Singapore +8 )5) )) ()58$ G.A.

Sri .anka G.A.

)ai/an ) )) G.A.

)hailand G.A. )*s )8* )5

0ietnam G.A. )) ))s ))*

Common membership services(access to members directory, subscription to newsletters and bulletin, access to

sectoral industry publications and country reports, participation to social events,

workshops, and seminars, attendance to language courses, benefits from CCA!s

media presence, and access to Hob seekers databases$

2In demand3 services for members(provision of information on specific companies or markets, the search and screening

of potential suppliers and business partners, the organisation of and assistance forbusiness meetings and trade missions, the organisation of and assistance for

participating to trade fairs and e#hibitions, the legal assistance for the establishment of

businesses, business domiciliation and secretary services, legal assistance and

advice, translation and interpreter services, advertisement and sponsorships, and

employment services$

Consultative and policy advocacy functions(members! committees focused on various thematic areas such as corporate social

responsibility, industrial relations, education, young professionals, government

relations, policy and consultation, sustainable development, ta#ation and regulation'

they also serve to share information and updates on legislation, policy initiatives,government officers! political orientations, and turnover of key officers positions within

Gl b l B i I tit ti

Global Business InstitutionsPRISMS

1.Private vs. communitca!italism

".GGOs vs. NGOs

#.Go$%illas vs. Ti&ers'.T(e bene)ts vs. costs o*

*ree tra$e+.S(oul$ GGOs su!!ort

bot( cultural *orms o*

-.S(oul$ (uman ri&(ts re!lacenational soverei&nt as t(e

e &oal o* nations,/. Is $e*ensive !rotectionism

0usti)able (enun$er$evelo!e$ nations aret(reatene$ b Global +22

cor!orations,3.S(oul$ ric( nations be

re4uire$ to en&a&e in im!ort

substitution,

5. 6oes t(e IM7 (ave an a&en$a toconvert Ti&er nations to !rivateca!italism,

12. S(oul$ t(e international $ebt o*stru&&lin& Ti&er nations becancelle$,

11. S(oul$ t(e IM7 be re*orme$ oreven $issolve$,

1". S(oul$ &overnments use t(eircor!orations as a *orei&n !olictool,

1#. Is !rivate ca!italism a *orm o*

nationalism,

ENTERING T8E LAST ERA O7 8UMAN8ISTOR9,

7amilies :lans Tribes

;illa&es :ities

Nations Re&ions

Era o* internationalism<multilateralism= over

nationalism

T(ere>s no bi&&er

$imension *or t(eorl$ to &rointo unless it>s

inter!lanetartra$e?

@A ne &lobal civili%ation (as emer&e$

(ose i$entit lies not 0ust in t(e norms

o* $ress a$vertisin& multinational

bran$s or t(e constant bu%% o* orl$

music. Tec(nolo& (as enable$ our !lanet

to be covere$ b a sin&le civili%ation *or

t(e )rst time in (uman (istor. It is no

enmes(e$ in tin ca!illaries t(at not onl

transmit in*ormation at li&(tnin& s!ee$but

also conve inte&rate$ norms o* social

!olitical economic be(avior.C

D89 NATION STATES ARE 6E:LINING

1. Nations are becomin& so economicallinter$e!en$ent t(at re&ionali%ation isbecomin& a ne *orce.

". Peo!le are more mobile t(an everbe*ore.

#. Minorit !o!ulations in a &roin&number o* nations are assertivel$eman$in& &reater sel*$etermination.

'. Global cor!orations can meet t(e

consumer nee$s o* t(e orl$>s!o!ulation better t(an most national&overnments.

+. Ne &lobal !roblems (ave emer&e$ t(at

re4uire t(e coo!eration o* nationsF

A NED"1

:ENTUR9GLOBAL

T(e "1st centur !olitical economicor$er is no lon&er base$ on secon$(al* "2t( centur :ol$ Dar American

ca!italism vs. Soviet :ommunism.Accor$in& to ne &lobal t(inerGeor&e 7rie$man t(e "1st centur&lobal structure is overbalance$ in*avor o* U.S. (e&emon becauseAmerica is *or t(e time bein& t(eonl trul &lobal !oer. But anot(er

t(iner 7aree$ aaria assertst(at e are livin& in a @PostAmericanC orl$ (ere t(e U.S. isnot $eclinin& as muc( as ot(er

$evelo!in& nations <le$ b :(ina

( i i " ill

T(ese risin& "1st centur !oers illeventuall move to *orm <!rimarileconomic= coalitions as a

counterbalance to U.S. $ominance.Ne variants o* ca!italism areemer&in& better suite$ to t(e cultureso* $evelo!in& nations !osin& a lon&

term c(allen&e to t(e Destern @neoliberalC A$am Smit( i$eolo& <!ro)tmaHimi%ation sin&lestae(ol$ernationalist= ca!italism. In t(is @!ost

AmericanC emer&in& orl$ structuret(e U.S. ill (ave to $eci$e i* it antsto !artici!ate in s(a!in& t(e neor$er via multilateral !olic

consultation or settle *or a less

NED EMERGING GLOBAL

NED EMERGING GLOBALIN7RASTRU:TURE 7OR T8E "1

:ENTUR9

1. Global GovernmentOr&ani%ations <GGOs=

". NonGovernmentOr&ani%ations <NGOs=

#. Global Public PolicNetors <GPPNs=

GGOs TO6A9

1. International Monetar 7un$

<Aut(orit over nations t(atborro mone=

". International Labor

Or&ani%ation <U.N.= <Aut(oritover (uman ri&(ts violations int(e &lobal or!lace=

#. Dorl$ Tra$e Or&ani%ation<Aut(orit over nations intra$in& !ractices=

' I t ti l St $ $

'. International Stan$ar$sOr&ani%ation <Man$ates

stan$ar$s *or all !(ases o*&lobal business o!erations=

+. Euro!ean Union <Assumin&

increasin& aut(orit over t(eeconomic !olitical !ractices o*"+ Euro!ean nations=

-. International :riminal :ourt<I::= <:a!acit to !rosecutenational lea$ers (o commit

@(i&( crimes a&ainst (umanitC=

/ N t( A i 7 T $

/. Nort( American 7ree Tra$eA&reementF limite$ but &roin&aut(orit over @:ANAMERI:OC

3. @G/C G"2C &overnmentsFIn*ormal coalition o* t(e orl$>s / "2 lar&est economies (ic(strive to inuence (o t(e &lobaleconom o!erates

5. T(e inuence o* t(e Unite$ Nationsover soverei&n nations (as beenlimite$ b t(e nationalism o* a *enations !ossessin& veto !oer

MEMBERS O7 T8E @G"2C

MEMBERS O7 T8E @G"2C• Ar&entina Australia Bra%il :ana$a

:(ina 7rance German In$ia In$onesiaItal Ja!an MeHico Russia Sau$i ArabiaSout( A*rica Sout( Korea Ture UK USA<un$erline$ members maeu! t(e @G/C=

• T(e G"2 as instrumental in mana&in& t(eorl$ economic crisis o* "223"212insti&ate$ b investment ban an$$ere&ulation abuses in t(e USA. Dit(out

t(e illin&ness o* t(e orl$>s lar&esteconomies to stimulate t(e $e!resse$&lobal econom recover *rom t(e crisisoul$ (ave been muc( sloer an$ more

$estructive.

T8E I::

T8E I::1T(e International :riminal :ourt <I::= is an

in$e!en$ent !ermanent court t(at tries

!ersons accuse$ o* t(e most serious crimeso* international concern namel &enoci$ecrimes a&ainst (umanit an$ ar crimes.T(e I:: is base$ on a treat 0oine$ b 12'member nations so *ar <but not t(e USA=. T(eI:: is a court o* last resort. It ill not act i* acase is investi&ate$ or !rosecute$ b anational 0u$icial sstem unless t(e national!rocee$in&s are not &enuine. In a$$ition

t(e I:: onl tries t(ose accuse$ o* t(e&ravest crimes. In all o* its activities t(e I::observes t(e (i&(est stan$ar$s o* *airnessan$ $ue !rocess.C T(us *ar t(e :ourt>s maininvolvement (as been it( t(e ars in:on&o Su$an U&an$a.

T8E ESSEN:E O7 NGOs1. NGOs strive to re!resent t(e communit

interests o*ten i&nore$ b !rivatecor!orationsF em!loee el*areenvironmentalism (uman ri&(ts etc.

". Alt(ou&( varie$ in mission NGOs s(are

one common !ers!ectiveF unrestraine$nationalistic economic &rot( is t(ecatalst *or t(e orl$>s bi&&est

!roblems in t(e "1 centurFenvironmental $e&ra$ationmaterialistic consumerism eH!loitativeca!italism etc.

@NGO ( b t( $

@NGOs (ave become t(e ne an$ecient atc(ers o* multinationalsbein& able to $enounce t(oseactivities (ic( coul$ be $ama&in&to t(e environment an$ to localcommunities as ell as some

s(ame*ul corru!tion !ractices as aresult t(e (ave been able to *orcet(em to im!rove t(eir cor!orate

social res!onsibilit an$ t(eiraareness o* t(e (eav costs tot(eir sales o* (avin& a ne&ative

social re!utation.C

NGOs &o a*ter GGOslie $o&s c(ase

:an t(eir o!!ose$missions ever be

reconcile$,

sFT(e @Global Anti&rot( :oalitionC

Antibusiness environmentalists (umanri&(ts or&ani%ations antica!italists

Ne A&e activists neoisolationists

1. Amnest International

". Green!eace

#. 8uman Ri&(ts Datc(

'. Peacenet

+. 7orest :onservation Portal

-. One Dorl$

O;ER "+222 NGOS IN T8E DORL6

O7AM INTERNATIONAL

7oun$e$ in 155+ OH7am <OH*or$ :ommittee*or 7amine Relie*= is one o* t(e orl$>s ma0orNGOs a con*e$eration o* 1# social 0ustice!ro&ress or&ani%ations <it( #222!artners in 122 nations= orin& to&et(er to!romote sustainable economic $evelo!mentan$ !overt. @OH*am ors it(communities allies an$ !artneror&ani%ations un$ertain& lon&term$evelo!ment emer&enc or researc( an$

cam!ai&nin& *or a *airer orl$. De see to(el! !eo!le or&ani%e so t(at t(e mi&(t &ainbetter access to t(e o!!ortunities t(e nee$to im!rove t(eir liveli(oo$s an$ &overn t(eir

on lives.C

1 Rain*orest Action Netor

1. Rain*orest Action Netorvs. :iti&rou! over loanst(at le$ to (abitat loss climate c(an&e in 6:s

". Green!eace vs.EHHonMobil to re$uceclimate c(an&in& *uel!ro$uction

#. Peo!le *or t(e Et(icalTreatment o* Animals vs.Bur&er Kin& Den$>s *orbee* *armin&

slau&(terin& abuses

' Green!eace vs 6o :(emical

'. Green!eace vs. 6o :(emical<t(at bou&(t Union :arbi$e trie$ to &et U: oQ t(e (oo *or itsliabilities *rom a !estici$e $isasterin In$ia $urin& t(e 1532s=

+. :entre *or Science Environmentvs. :oe Pe!si in In$ia over (i&(!estici$e concentrations in t(eirso*t $rins

-. :(il$ren>s activists vs. Nie *orseats(o!s

1 8o $i$ nations ten$ to

1.8o $i$ nations ten$ toresolve t(eir $iQerences

be*ore GGOs NGOs came ont(e scene, <ar colonialism=

".D(at !romotes !eace moreF in$e!en$ent nations orinter$e!en$ent nations, <T(emore nations nee$ eac( ot(ert(e more t(e coo!erate.=

NETDORKS

@GPPNs are $esi&ne$ to brin& in businessas a lar&er !artici!ant in t(e !rovision o*

t(ose !ublic &oo$s t(at are at t(e (eart o*t(e &lobal sustainabilit an$ $evelo!menta&en$as. GPPNs lin local national re&ional &overnments transnationalcor!orations ot(er businesses an$ t(eirassociations. 6iverse sometimes o!!osin&&rou!s $iscuss common !roblems t(at no

one o* t(em can resolve b itsel*. T(e i$eat(at t(ese various &rou!s can meet *ace to*ace in a nont(reatenin& *orum to $iscussissues is !romisin&. GPPNs maHimi%es t(e

inclusion o* material in*ormation a ric(C

1 +2 -2 GPPNs (ave emer&e$ since

1. +2-2 GPPNs (ave emer&e$ sincet(e earl 1552s to !romote!artners(i!s beteen business

&overnment NGOs to coor$inateresources to )&(t &lobal economicsocial ecolo&ical !roblems.

". T8E :ONSULTI;E GROUP ONINTERNATIONAL AGRI:ULTURALRESEAR:8 strives to broa$en

researc( su!!ort *or *oo$ su!!lies sustainable a&riculture <(erenations can *ee$ t(emselves aren>t $e!en$ent on im!ortin& *oo$=

# GLOBAL REPORTING INITIATI;EF

#. GLOBAL REPORTING INITIATI;EF6evelo!s &lobal sustainabilitaction accountabilit &ui$elines

*or cor!orations'. MILLENNIUM E:OS9STEM

ASSESSMENTF Anal%es scienti)c

researc( *or !olic initiatives onecosstem c(an&e

+. ME6I:INES 7OR MALARIA ;ENTURE

-. RENEDAL ENERG9 POLI:9NETDORK

/. T8E INTERNATIONAL :AMPAIGN TO

BAN LAN6MINES

B<ene)t=:OMPANIES

@BC <bene)t= com!anies are a ne

B <bene)t= com!anies are a ne(bri$ beteen *or!ro)t non!ro)tor&ani%ations. :om!anies lie

Neman>s On <starte$ b actor PaulNeman= Pura ;i$a :oQee <or&aniccoQee= contribute t(eir !ro)ts to

c(aritable causes a$o!tin& a !artbusiness!art !art !(ilant(ro!or&ani%ational mo$el. Some Bcom!anies even !a $ivi$en$s tot(eir s(are(ol$ers. Most B com!aniesc(aracteri%e t(emselves as missions$riven rat(er t(an com!etitivel

$riven.

@BC :or!orations are a ne t!e o*

B :or!orations are a ne t!e o*cor!oration t(at are !ur!ose$rivenan$ create bene)t *or all stae(ol$ers

not 0ust s(are(ol$ers. B :or!orations

are unlie tra$itional res!onsiblebusinesses because t(eF

• Meet com!re(ensive an$ trans!arentsocial an$ environmental !er*ormancestan$ar$s.

• Institutionali%e stae(ol$er interests.

• Buil$ collective voice t(ou&( t(e !oero* a uni*in& bran$.C

GATT 7 t

GATTF 7orerunner toto$a>s Dorl$ Tra$e Or&.

1. General A&reement on TariQsan$ Tra$e 15'3USA

". GATT as t(e )rst &lobal or&. toattem!t to !romote *ree tra$e

#. T(e onl a GATT coul$ !asstra$e !olic as i* all member

nations a&ree$. Most *avore$nation status <M7N= as t(eirincentive.

' In t(e 1552s GATT *ell

'.In t(e 1552s GATT *ella!art because $evelo!e$

nations an$ $evelo!in&nations coul$ no lon&er

a&ree on a common !olica&en$a because t(eere !oles a!art.

+.T(is us(ere$ in t(e Dorl$Tra$e Or&ani%ation <DTO=

1 In 155+ GATT as

1. In 155+ GATT as

reor&ani%e$ as t(e DTO". 8ea$4uartere$ in

Geneva Sit%erlan$#. 1'- member nations

'. ++2 staQ members

DTOF T(e Datc( 6o&

o* Global Tra$e

T8E O77I:IAL DTO MISSION

1.Promotin& *ree

e4uitable &lobal tra$e

".Settlin& tra$e $is!utes

#.Evaluatin& t(e tra$e!olicies o* nations

'.Provi$in& economicconsultin& to 6:s

T8E REAL DTO MISSION

@T(e essential &oal o* t(e DTO

is to $ere&ulate internationaltra$e. To accom!lis( t(isDTO rules limit t(e ca!acit o*&overnments to re&ulate

international tra$e or tointer*ere it( t(e activities o*cor!orations.C

:learl t(e DTO sees to!romote @neoliberalCca!italism in (ic( maretstae !rece$ence over nations.

MOST :OMMON NONTARI77

MOST :OMMON NONTARI77TRA6E BARRIERS

1. Subsi$iesF T(e &overnment )nanciall(el!s cor!orations *armers tocom!ete a&ainst *orei&n com!etition

". uotasF 7orcin& nations to restrict t(e

4uantit o* eH!orts t(e sen$#. ;ERs <@;oluntarC EH!ort Restraints=F

Armtistin& nations into@voluntarilC restrictin& t(eir eH!orts

'. Local sourcin& re4uirementsF 7orei&nmanu*acturers must bu su!!lies*rom $omestic su!!liers

5. “Dumping”: selling below cost in

foreign markets to “steal” marketshare from local competitors6. Asian sweetheart bank loans:

The Asian government pas o!loans companies can"t pa o!.#. Tari! o!set ta$ breaks:%ompanies get to re&uce theirta$es b the amount of tari!s the

'ost(favore& nation status:)T* members get tari!

breaks

BASI: DTO

BASI: DTOSTRU:TURE

1.T(e 6is!uteSettlement Bo$

".T(e Tra$e PolicRevie Bo$

#.T(e General :ouncil<Secretariat=

1.@In*ormal &reen roomC

consensus *orums beteennations t(at ant to @$o a $ealC

". :onsensus ministerial meetin&s<it( ma0orit votin&!ermissible but voluntara&reement !re*erre$=

#.Policrecommen$in&committees s!ecial issue tas

*orces

'. T(e DTO must see to

'. T(e DTO must see to(armoni%e its !olicies it(t(ose o* ot(er &lobal&overnment or&ani%ations<GGOs=

+. T(e DTO uses t(e tec(nicalstaQ o* GGOs *or !olic analsis

-. T(e DTO isn>t su!!ose$ to

micromana&e t(e economic!olicies o* its members <as t(eIMBDorl$ Ban (ave been

accuse$ o* $oin&=

DT L UT 7 T8E @ UA6C

NATIONS

1. T(e @4ua$C nations o* t(e DTO

<t(e U.S. :ana$a EU Ja!an t(e EU= o*ten !ool t(eir votin&!oer an$ !olitical inuence to

steer DTO activities in a$esire$ $irection.

". @T(e ua$ countries basicall$etermine (ic( issues areim!ortant an$ come to t(e ooran$ (ic( $o not.C

T8E DTO>S TEET8

T8E DTO S TEET81. Member nations enact en*orce

t(eir on tra$e re&ulations". Nations can sue eac( ot(er over

tra$e $is!utes <via a t!ical civil

liti&ation !rocess o* o!!osin& lateams 0ur !anel o* tec(nicaleH!erts ver$ict a!!eal o!tion=

#. Tra$e le&islation can be !asse$ bma0orit vote can be bloce$ ba consensus o* DTO members.

T8E DTO TRA6E

T8E DTO TRA6E:OMPLAINT PROTO:OL

1.T(e *eu$in& nations musten&a&e in an in*ormal$ialo&ue be*ore t(e DTO

can &et involve$".I* t(e *eu$ is not resolve$

a*ter -2 $as a DTO tra$e!anel <@0urC= can be*orme$ t(e case resolve$it(in one ear.

T( DTO l

T(e DTO !anels

<0u$&es= meet insecret all

!rocee$in&s remaincon)$ential. Nooutsi$e a!!eal is

!ermitte$

T8E TOP + DTO PLAINTI77S 155+

"22"1. IN6IAF 7ile$ 1+ suits

". BRAILF "" suits#. :ANA6AF "' suits

'. EUF -# suits

+. USAF 7ile$ /' suits <innin& /3=T(e U.S. success*ull $e*en$e$a&ainst "+ o* suits as $e*en$ant

(i&(er t(an t(e 1+ victor rate*or DTO $e*en$ant nations overall. <EU on '- o* its cases as

$e*en$ant=

1. Go$%illas )le$ -# <1// out o* "/5= o*

DTO c(allen&es beteen 155+"22"a 4uarter o* t(ese ere a&ainst

Ti&ers Go$%illas on 5+ o* t(esec(allen&es

". Go$%illas on 31 <' o* + cases= o* all

cases )le$ in t(e DTO#. Ti&ers on 5+ <"2 o* "1 cases= o*

c(allen&es a&ainst Go$%illas (ileGo$i%illa on 3" o* t(eir suitsa&ainst ti&er nations.

'. SummarF PlaintiQ nations (ave onmost o* t(e time Go$%illas (ave )le$

on a more suits t(an Ti&ers

1. In "22" t(e U.S. lost a 'B suit

to t(e EU over &rantin&American com!anies taH

$e$uctions *or EU tariQs.". In "22# t(e DTO sla!!e$ t(e

USA it( a "."B )ne *or steel

tariQs.#. In "22' t(e DTO levie$ t(e U.S.

an annual )ne o* 1+2M as lon&

as t(e @Br$ Amen$mentCremaine$ in eQect <(ic(com!ensates U.S. com!anies *or

)lin& tra$e com!laints relate$ to

AMERI:A SUES :8INA

In "22/ t(e U.S. lo$&e$

tra$e com!laints in t(eDTO a&ainst :(ina

c(ar&in& t(em it( !ain&eH!ort subsi$ies to :(inesecom!anies !iratin& 6;6s

:6s restrictin& t(esale o* *orei&n )lms

music in :(ina

In t(e summer o* "225 t(e Dorl$

Tra$e Or&ani%ation issue$ an

un*air !ractices rulin& a&ainst:(ina *or re4uirin& Americanme$ia com!anies to use state

one$ :(inese com!anies *or$istributin& t(eir !ro$ucts tot(e :(inese maret!lace an$ *or

t(e &overnment>s ri&(t to altert(e contents <censor= o* me$iamaterial.

1. A&reement on Tec(nical Barriers To Tra$eFPro(ibition o* tra$e 4uotas embar&os or

Pro(ibition o* tra$e 4uotas embar&os orbans.

". A&reement on A&ricultureF Nations s(oul$

im!ort *oo$ (en it is c(ea!er t(an&roin& it at (ome. No a&reement eHistson eliminatin& a&riculture subsi$ies.

#. A&reement on Tra$erelate$ IntellectualPro!ert <TRIPs=F Nations must en*orce t(eintellectual !ro!ert las o* ot(er nations

'. General A&reement o* Tra$e in Services<GATS=F Nations must o!en t(eir bor$ers

to t(e eH!ortin& o* services *rom aroun$t(e orl$.+. A&reement on Tra$eRelate$ Investment

Measures <TRIMs=F Nations must o!ent(eir bor$ers to t(e unrestricte$ ino

outo o* ca!ital.

7AILURE O7 T8E DTO 6O8A ROUN6<"222"22-= O7 TRA6E TALKS

<"222"22-= O7 TRA6E TALKS

1. T(e roun$ o* DTO tra$e tals starte$ in "222 int(e Mi$$le East nation o* atar (a$ &reat (o!es*or a$$ressin& t(e tra$e com!laints o*

$evelo!in& nations <@Ti&ersC= relatin& to t(e useo* a&ricultural subsi$ies b ric( <@Go$%illaC=nations.

". But t(e roun$ colla!se$ in t(e summer o* "22-(en Go$%illa nations )nall @t(re in t(e toelC

on eHten$in& t(e subsi$ $ialo&ue *urt(er.#. Ti&ers (ave " s!eci)c com!laints a&ainst Go$%illanations *or t(eir use o* (eav a&riculturalsubsi$iesF <A= Subsi$ies si&ni)cantl loer t(ecost o* Go$%illa a&ricultural !ro$ucts t(usrestrict t(e amount o* a&ricultural !ro$uctsim!orte$ b Go$%illas *rom Ti&er nations <B=Un$er t(e DTO>s im!ort substitution !olicTi&ers are *orce$ to !urc(ase man subsi$i%e$*oo$ eH!orts *rom Go$%illa nations since t(e arec(ea!er t(an (at Ti&ers can &ro t(e same

!ro$ucts *or at (ome.

'. T(e U.S. ante$ t(e 6o(a roun$ to* tti t iQ t(

*ocus more on cuttin& tariQs t(an onsubsi$ies but t(e EU as o!en to$iscussin& tariQ cuts on manu*acture$!ro$ucts onl not *arm !ro$uct tariQs.

+. T(e U.S. asn>t intereste$ in subsi$com!romise insistin& t(at no ne

DTO a&reement as !re*erable to aatere$ $on one.

-. @T(e most liel route to renee$DTO subsi$ tals is *or nations to

reali%e t(at re&ional <bilateral= *reetra$e a&reements $on>t (ave nearlt(e economic !otential as true &lobal<multilateral= a&reements.C

LESS REGIONAL 7REE TRA6E MOREGLOBAL

GLOBAL@To$a t(e t(rivin& orl$ econom is

com!lacent. Protectionism (as

$ecline$ si&ni)cantl $ue to re&ional*ree tra$e a&reements <NA7TA t(e EU

MER:OSUR etc.=. But nations must

un$erstan$ t(at bilateral <re&ional=tra$e $eals com!licate im!ortin&eH!ortin& on a &lobal basis es!eciall

in Asia (ere a noo$le bol o* /2

bilateral tra$e $eals &reatl com!licatet(e ecienc o* !ro$uct movementlo&istics. In a$$ition bilateral $ealsten$ to &enerate muc( bi&&er tra$in&bene)ts *or lar e nations t(an small.C

DTO PROTESTS

:ontrovers !rotests accom!an

t(e DTO ever time it (ol$sroun$s o* tals in (ost citiesaroun$ t(e orl$. In 1555

+2222 sometimes violent!rotestors s(ut $on DTOsessions in Seattle. Subse4uent

roun$s o* tals in Ital :ancun8on& Kon& Rostoc Germanalso eH!erience$ varin& $e&rees

o* turbulence.

GLOBAL INSE:URITIES :AUSE6 B9 T8E

SPREA6 O7 NEOLIBERAL :APITALISM

1. :las( o* secularconsumerist culturesit( communit cultures in A*rica Latin America t(eocratic culturesin t(e Mi$$le East.

". Ra!i$ rise in &lobal oil !rices cause$b :(ina>s ra!i$ ca!italistic &rot(

#. Global !ros!erit base$ on America>s

$ebt)nance$ overconsum!tion'. 6estabili%ation o* orl$ )nancial

marets b America>s investment

banin& scan$al o* "223

T8E MAIN :ON:ERNS O7 DTO :RITI:S DIT8

BUSINESS6RI;EN GLOBALISM IN :"1

1. Ra!i$l risin& &lobal ealt(ine4ualit is evi$ence o* un0ustca!italism

". Domen all over t(e orl$ butes!eciall in t(e $evelo!in& orl$(ave been *orce$ to aban$on t(eir*amil nurturin& role to earn

mone. #. Global economic 0ob insecurit

are eH!lo$in& $ue to &lobal

ca!italistic com!etition

'. :ultural insecurit is &roin&

it( t(e ra!i$ s!rea$ o* Desternconsumerism <materialism $ebt!ollution a$vertisin&=

+. Environmental insecurit is

eH!an$in& $ue to t(e ra!i$ onseto* @social outsourcin&C<eH!ortin& !ollution ris

!ro$ucts abroa$=-. Political insecurit is t(e

b!ro$uct o* economic cultural

environmental insecurit

/. In its eQorts to su!!ort t(e

interests o* &lobal cor!orationsover t(e interests o* nations o*local communities t(e DTO!ro(ibite$ t(e EU>s eQorts to

restrict im!orts (ormone*e$bee* a!!rove$ seat s(o!manu*acturin& in man

$evelo!in& nations an$ si$e$it( com!anies o!!osin&*orei&n labor unions an$

environmental le&islation.

@National &overnments ce$e$

!oer to t(e DTO an$ IM7 or(a$ t(is !oer sei%e$ *rom

t(em b international marets.T(e orl$ econom nee$s to be

brou&(t bac in line it(!olitical nee$s so t(at nationalan$ &lobal !olitical structures

ill reect t(e interests o* t(eorl$>s !eo!les an$ assertaut(orit over &lobal marets. C

:RITI:S 7ROM T8E RIG8T

:RITI:S 7ROM T8E RIG8TNot all DTO critics are *rom t(e le*t o*

t(e !olitical s!ectrum. :onservative@neoliberalC ca!italists o!!ose&overnment intervention into t(emaret!lace !re*errin& *or t(e

@invisible (an$C o* ca!italism to (ave*ull sa. Neoca!italists t(us o!!oset(e *ree tra$e interventions o* GGOs!re*errin& t(at cor!orate an$

nationalistic interests o!erateit(out GGO institutionalcoor$ination or multilateral <multination= !olic .

@8uman ri&(ts must

u a & s usre!lace national

soverei&nt as t(e einternational issue.

Dealt( countries illbecome inun$ate$ it(

immi&rants unless t(eNort(Sout( economic

$ivi$e is *ace$ C

LIBERTARIAN <neo

LIBERTARIAN <neoliberal=

:APITALISMF T8E

E:ONOMI: I6EOLOG9O7 GLOBAL

GO;ERNMENTINSTITUTIONS

1. @NeoliberalC <!rivate= ca!italism is t(ei$eolo& o* most Destern nations

i$eolo& o* most Destern nations<es!eciall t(e USA=. Its be$roc!rinci!les inclu$e t(e im!ortance o*!rivate enter!rise *ree tra$e minimum&overnment encroac(ment on t(e@invisible (an$C o* ca!italism t(e !ro)tmaHimi%ation et(ic.

". @NeoC re*ers to a!!lin& t(is ca!italisti$eolo& to nations in a$$ition tocor!orations @liberalC re*ers to

liberali%in& t(e role o* &overnment in!romotin& !rivate enter!rise *ree tra$e<as o!!ose$ to re&ulatin& businessactivit onin& or runnin&

cor!orations=.

T8E I6EOLOG9 O7NEO LIBERAL :APITALISM

NEOLIBERAL :APITALISM

1.@Invisible(an$C ca!italism base$ on

&rass roots !ro)tmaHimi%in& business$eals re&ulate$ b im!ersonal institutions<:PA )rms stoc marets broers la)rms etc.=

". Sin&le stae(ol$er <)nancialonersstoc(ol$ers= !rivate cor!orationscom!etition in 6arinist survivalo*t(e)ttest in$ustries

#. Laisse%*aire ca!italism base$ on limitin&t(e &overnment>s re&ulator role

'. Neoliberalism ants t(e maret to

control ca!italism not &ovenments.

'. EH!ortin& o* neoca!italist !oliciest $ l i ti i l b l

to $evelo!in& nations via &lobaleconomic institutions <Dorl$ Tra$e

or&ani%ation InternationalMonetar 7un$Dorl$ Banre&ional *ree tra$e a&reements=

+. EH!ortin& Destern culturet(rou&(out t(e orl$Fconsumerism !o! culture uniseH

&en$er roles @Social 6arinistC<survivalo*t(e)ttest=com!etition

Is neolib ca!italism

Is neo lib ca!italism

suitable *or t(einter$e!en$ent "1st

centur orl$ oronl *or t(e

in$e!en$ent 15t( "2t( centuries,

GLOBAL

GO;ERNMEN

T E:ONOMI:

INSTITUTION

+,---- emploees/

1. T(e Dorl$ Ban $escribes itsel* as @anor&ani%ation o* 13' countries orin&

or&ani%ation o* 13' countries orin&to *oster &lobal monetar coo!eration

secure )nancial stabilit *acilitateinternational tra$e !romote (i&(em!loment an$ sustainable economic&rot( an$ re$uce !overt.C

". It (as loane$ over #+2B over t(e !ast+2 ears mostl to $evelo!in&nations. Mone as loane$ to a total

o* -- $iQerent nations in t(e !ast "+ears.

#. In recent ears t(e Ban>s avera&e

annual loan rate (as been "2B.

8OD T8E DORL6 BANKSTRI;ES TO SER;E

STRI;ES TO SER;E

6E;ELOPING NATIONS1.Lon&term loans <1+#2 ears=*or economic social$evelo!ment

".In*rastructure loans <$ams(i&(as bri$&es etc.=

#.Pollution re$uction'.7amil (ealt( re!ro$uctive

services

)01 A23 T03 42AT3 73%T*27

*8 '*7T D%s 7* )3A9

•Agricultural economies•7carce investment

capital•;imite& business

infrastructure•)eak institutions

1. T(e IM7 ten$s to mae s(ort

1. T(e IM7 ten$s to mae s(ortterm <#+ ears= loans to (el!

$evelo!e$ nations $eal it(s(ortterm economicc(allen&es suc( as occasional

tra$e $e)cits recessionseaenin& currenc or cro!$isasters. It relies on its sister

len$er t(e Dorl$ Ban to maelon&erterm $evelo!mentalloans <ma0or construction!ro0ects (ealt( (uman

". T(e IM7 maes s(ortterm loans tonations stru&&lin& it( tra$e balance

nations stru&&lin& it( tra$e balance!roblems unstable currencies.

#. T(e IM7 sometimes maes lar&e risloans t(at !rivate bans oul$ not mae.It>s t(e len$er o* last resort.

'. T(e IM7 !rovi$es a buQer to $eal it(

t(e (ot mone !roblem <mone crisscrossin& bor$ers it( limite$institutional control=.

+. Private sector )nancers can>t $eal it(t(e com!leHit ris o* )nancin&nations.

-. T(e IM7 is o*ten use$ to a$vance t(e

*orei&n !olic aims o* its $e!ositors.

D89 NATIONS 6EPOSIT MONE9

IN T8E IM7 TO BE LOANE6 OUTNations $on>t mae $e!osits in t(e IM7

in or$er to mae mone on interestbut rat(er to (ave a sa in t(e termso* t(e loan. T(e more mone a nation

$e!osits in t(e IM7 t(e more sa it&ets in $eterminin& t(e terms o* t(eloanVsuc( as structural c(an&es t(eborroer must mae in its !olicies economic structure !olicies. T(usIM7 loans can be a !otent *orm o*&lobal !olitical inuence.

B tra$ition t(e Dorl$

Ban !resi$ent is

electe$ b t(e U.S.<t(e lar&est

s(are(ol$in& nation=(ile Euro!e c(ooses

t(e IM7 mana&in&

$irector

Neoliberalism is t(e economic!(iloso!( o* @libertarian <neo

!(iloso!( o* @libertarian <neoliberal= ca!italismC t(at su!!orts

t(e @invisible (an$C o* maret<rat(er t(an communit or&overnmental= *orcesF !ro)t

maHimi%ation *ree tra$eunrestricte$ movement o* ca!italresources <mone tec(nolo&=

across bor$ers &lobal business.T(e + *oun$ational libertarianca!italism !olicies o* t(e IM7 areF

W1. PRI;ATIE <sell &overnmentruncom!anies to !rivate cor!orations=

com!anies to !rivate cor!orations= 6EREGULATE <$ro! all restrictions

on (ic( com!anies are alloe$ tocom!ete in in in$ustr=

ProsF &overnments $on>t run

businesses ecientl or eQectivel:onsF @Ti&ersC <$evelo!in& nations=

(ave *e lar&e cor!orations ca!able

o* !rivati%in& &overnmentcom!anies so *orei&n )rms!rivati%e t(em instea$

W". REMO;E GO;ERNMENTRESTRI:TIONS ON T8E 7LOD O7

RESTRI:TIONS ON T8E 7LOD O77OREIGN 6IRE:T IN;ESTMENT

ProsF Investors are alrea$ tain&bi& enou&( riss b loanin& t(eirmone to Ti&ers t(e s(oul$n>tbe *orce$ b Ti&er &overnments toleave t(eir mone t(ere anlon&er t(an t(e ant to.

:onsF Ma0or re&ional currencmelt$ons (ave (a!!ene$ $ue tot(e @(ot moneC sn$romecause$ b lac o* restrictions on

76I os

W#. MANAGE TRA6E AROUN6 T8E NEE6SO7 :ORPORATIONS

O7 :ORPORATIONS

ProsF :or!orations tae t(e riss in

&lobal business s(oul$ t(us bein t(e $river>s seat cor!orationsare la$en it( !ro$uctive

resources:onsF :or!orations value !ro)t over

!atriotism o*ten aQect

international !olitics $ue to t(eirsi%e ealt(. All nations are$e!en$ent on &lobal cor!orations

to one eHtent or anot(er

W'. PRA:TI:E IMPORT SUBSTITUTIONIN TIGER NATIONS

T(e IM7 im!ort substitution !ro&ramencoura&es Ti&er nations to im!ort

ecientl!ro$uce$ commo$ities<es!eciall a&ricultural !ro$ucts= *romGo$%illa nations in !lace o* !ro$ucin&t(em $omesticall.

ProsF Ti&ers can im!ort man commo$ities*rom &iant Go$%illa a&riculturalcon&lomerates c(ea!er t(an !ro$ucin&at t(em at (omeVo*ten because Go$%illa*armers &ain a com!etitive a$vanta&e

*rom lar&e &overnment subsi$ies:onsF Im!ort substitution can cause Ti&ers

to lose t(eir *oo$ sel*sucienc !ut*armers out o* or in economies t(at

lac substitute 0obs

W+. MAKE GLOBAL BUSINESSOPERATIONS AS UNI7ORM AS

OPERATIONS AS UNI7ORM ASPOSSIBLE TO EPE6ITE E77I:IEN:9

ProsF Loers t(e cost!rice o*!ro$ucts

:onsF 7orces 6:s to 4uit main&inecient !ro$ucts toinstea$ im!ort t(em *rom

more ecient nations. T(ese6:s t(en eH!erience 0ob losses become less sel*sucient.

AMERI:AN 7ARM SUBSI6IES

I "22+ A i * i $

In "22+ American *armers receive$ over"2B in *arm subsi$ies t(us $e!ressin& t(e

&lobal !rice o* corn <'- o* total subsi$ies=sobeans <- o* total subsi$ies= rice <3o* total subsi$ies= cotton <"# o* totalsubsi$ies= an$ (eat <12 o* total

subsi$ies=. SiHt !ercent o* American*armers receive no &overnment subsi$iesan$ 12 <mainl t(e lar&er commercial*arms= &et /" o* total American subsi$es.Bra%il (as alrea$ on a subsi$relate$DTO suit a&ainst t(e U.S. an$ American*armers are orrie$ about more subsi$

relate$ suits in t(e near *uture <es!eciall

1. A recent stu$ o* t(e lon&termeQectiveness o* IM7Dorl$ Ban loan

!ro0ects $isclose$ t(at (al* o* t(e --nations )nance$ b t(e sister institutions

over t(e !ast "+ ears ere are better oQto$a t(an t(e ere be*ore !artnerin&it( t(e IMBDBVan$ "2 o* t(ese nationsere actuall orse oQ economicall.

". :ritics c(ar&e t(e " or&ani%ations it(bacin& illconceive$ $evelo!mental!ro0ects t(at $is!lace$ more t(an a million!eo!le *rom t(e (omes s!ane$environmental $ama&e eit(er ma$e*ra&ile $emocracies more instable orrein*orce$ t(e !olitical !oer o* $ictatorial

lea$ers in re!ressive !olitical re&imes.

EAMPLES O7 ALLEGE6 IM7DBBOON6OGGLES

1. T(e Sar$ar Sarovar $am !ro0ect

in In$ia $is!lace$ "+2222!eo!le into s4uali$ resettlementsites.

". T(e Polonoroeste 7rontier6evelo!ment !ro0ect cause$lar&e scale $e*orestation in t(e

Bra%ilian rain *orest.#. T(e Pa Mun $am !ro0ect in

T(ailan$ $estroe$ lar&e (uman

an$ animal (abitats

IM7DB STRATEGI: MISTAKES1 In most !laces (ere t(e o!erate

1. In most !laces (ere t(e o!eratet(e IM7DB t!icall un$ercut

!rivate len$ers <&lobal bans= (oare more liel to (ol$ t(eir clientnations res!onsible *or (o t(emone is investe$ sa*e&uar$e$

*rom corru!tion.". In an attem!t to $iminis( socialism

t(e " or&ani%ations *re4uentl *orce

&overnments to cut t(eir $omestics!en$in& to suc( an eHtent t(atsi&ni)cant economic $onturnsresult <causin& si&ni)cant

unem!loment=

#. IM7 loans o*ten (ave belomaret interest rates (ic(

maret interest rates (ic(encoura&es nations to borro

lar&er sums t(an t(e canaQor$ to !a bac.

'. T(e IM7DB mae loans to$evelo!in& nations in s!ite o*corru!t &overnments (o o*tenuse t(e mone *or non

economic !ur!oses suc( asbolsterin& t(e militar main&loans to @*at catC businessmen.

+. @Even t(ou&( t(e inuence o*t(e IM7DB is o*ten overstate$

t(e IM7DB is o*ten overstate$t(e (ave not been &iven

enou&( cre$it *or man o* t(elittle t(in&s t(e $o ell. Bot(institutions !rovi$e invaluableeconomic analsis in*ormationabout t(e &lobal econom t(atno ot(er nation or GGO coul$!er*orm it( suc( sill.C

-. More t(an -2 o* Asians /2o* A*ricans *eel t(e " institutions(ave (a$ a !ositive eQect on

t(eir countries

/. 6es!ite some o* its !olicies t(at(ave *allen s(ort o* t(e mar T(e

Dorl$ Ban (as (el!e$ man o* t(e

orl$>s !oor to receive sc(oolin&&ain access to clean ater an$electricit increase a&riculturalout!ut an$ to bene)t *romim!rove$ in*rastructure suc( asroa$s an$ sanitation !ro0ects.

3. @A balance$ assessment o* t(e

Dorl$ Ban oul$ liel s(o t(atmore !oor !eo!le (ave bene)te$*rom ban !ro0ects t(an (ave not.C

6evelo!in& nations (ave been *orce$to *ollo a less secure !attern o*

!economic $evelo!ment t(an t(e

lar&est economies o* t(e orl$. 6ueto t(e onset o* ra!i$ @tra$eliberali%ationC <4uic elimination o*!rotectionism subsi$ies !lusim!ort substitution= $evelo!in&nations ere not &iven t(e sameo!!ortunit to !rotect t(eir ne

in$ustries until t(e became stron&enou&( to com!ete on t(eir ona&ainst t(eir !oer*ul com!etitors in

t(e $evelo!e$ orl$

Accor$in& to $evelo!in& nation economist8aJoon :(an& (istor &ave Destern

Euro!e Ja!an t(e U.S. an$ several areaso* Asia muc( lon&er to slol nurturet(eir e &rot( in$ustries viasubstantial subsi$ies an$ ot(er *orms o*in*ant in$ustr !rotection.

@Ric( countries (ave ice$ aa t(ela$$er *rom 6:s b *orcin& *reemaret*reetra$e !olicies on !oor countries.Alrea$ establis(e$ countries $on>t antmore com!etitors emer&in& t(ro&u&(t(e nationalistic !olicies t(et(emselves success*ull use$ in t(e

!ast C

26evelo!e$ countries (ave been accuse$ o*maintainin& (i&( levels o* !rotectionism on t(e

$ $ i t $ b $ l i

&oo$s an$ services eH!orte$ b $evelo!in&countries suc( as a&ricultural an$ *oo$

!ro$ucts teHtiles *ootear an$ clot(in&. T(e(ave also been accuse$ o* &enerousl an$absur$l subsi$i%in& t(eir on a&ricultural!ro$uction (ic( is lar&el inecient an$ ver

uncom!etitive visXvis t(at o* $evelo!in&countries. T(ese subsi$ies also lea$ to (u&estocs o* noncom!etitive !ro$ucts t(e areeH!orte$ to $evelo!in& countries <also it(

subsi$ies= at $um!in& !rices s(atterin& t(eir$omestic a&ricultural !rices an$ maretsC.

T(e ric(est nations <(ic( lar&el controlt(e economic !olicies o* t(e IM7 an$

DTO= @(ave create$ a ne international

tra$in& sstem t(at is ri&&e$ in t(eir*avor. T(e are !reventin& $evelo!in&nations *rom usin& t(e ver tools o*tra$e t(at t(e ric( nations t(emselves

so eQectivel use$ in t(e !ast to!romote t(eir on economic$evelo!ment no at t(e eH!ense o*6:s. Tra$e liberali%ation $oes notnecessaril brin& overall &ain. Event(ere are inners in t(e !rocess t(eir&ains ma not be as lar&e as t(e loses

o* t(e losers C

8aJoon :(an& conclu$es t(at @*reetra$e ors neit(er in !ractice nor in

t(eor. 6es!ite its absmal recor$ ric(

nations (ave stron&l !romote$ tra$eliberali%ation in $evelo!in& since t(e1532s. T(e secret o* economic$evelo!ment success is a miH o*

!rotection an$ o!en tra$e it( areas o*!rotection constantl c(an&in& as nein*ant tec(nolo&ies are $evelo!e$ an$

ol$ in*ant in$ustries become internallcom!etitive. 7ree tra$e is not t(e best!at( to t(e economic $evelo!ment o*emer&in& economies to$a.C

1. Are t(e loan con$itions set bt( IM7 $ i

t(e IM7 &oo$ economics or

!olitical me$$lin&Va *orm o*@neocolonialismC,

". Neocolonialism re*ers to an

institutional *orm o* colonialismin (ic( $evelo!in& nations arealle&e$l $ominate$ b &lobal

&overnmental institutions suc(as t(e IM7 DTO rat(er t(anb coloni%in& nations.

T8E GLOBAL NORT8SOUT8 6I;I6E

1. T(e $evelo!e$ orl$ maes u!

onl "2 o* t(e orl$>s!o!ulation but (as 32 o* t(etotal ealt(

". T(e Nort(>s econom revolvesaroun$ t(e service sector t(eSout(>s aroun$ manu*acturin&

#. T(e Nort( consumes more t(an it!ro$uces an$ t(e Sout(!ro$uces more t(an it consumes

T<327: 2api&l &evelopingti

nations

,.;atin America=.'i&&le 3ast>.Africa

?.%hina5.7outheast Asia6.The “<=-” are the largest

&eveloping nations in the worl&inclu&ing %hina @rail B 7outh

Africa

EBRASF Un$er$evelo!e$ nationsit( sta&nant economic &rot(

it( sta&nant economic &rot(

1. T(e @G52C are t(e 52 !oorest nations int(e orl$ locate$ !re$ominatel in A*rica t(e Mi$$le East but also in !arts o* LatinAmerica Sout(east Asia.

". T(ese least$evelo!e$ nations arelabele$ as %ebras because lie t(e

stri!!e$ A*rican (orse t(e are vulnerable

to !re$ators <Go$%illa ca!italism=

$e!en$ent on t(e (er$ <resourceric(

nations= a&ricultural <(i&(ris lo

return economies=.

@TracC on t(e Go$%illa si$e o*

Trac on t(e Go$%illa si$e o*t(e bri$&e smboli%es Destern@im!erialistic ca!italismC bein&eH!orte$ into Ti&er nationsF DTO IM7 !ro)tmaHimi%ationi$eolo& im!ort substitution&lobal ecienc man$ate etc.=

Doul$ t(e orl$ be better oQ i*

t(e @bri$&eC came $on,

@D(en (u&e billboar$s *orSeH an$ t(e :it are

SeH an$ t(e :it are

*oun$ in t(e mi$$le o*Israel it is obvious t(at

t(e culture o* celebritemanatin& *rom t(eUnite$ States (as becomea currenc t(at is tra$e$t(rou&(out t(e orl$.C

NATIONS DIT8 T8E GREATEST ;OTINGPODER IN T8E IM7F

1. USA <&reatest votin& !oer=

". GermanJa!an <e4ual vote=

#. 7rance Britain

'. Bel&iumle$ consortium o* EasternEuro nations

+. Net(erlan$sle$ consortium o* UralMountain nations

-. MeHico Latin nation consortium

/. Ital Me$ Sea consortium

T8E @PARIS :LUBC O7:RE6ITOR NATIONS <G/=

:RE6ITOR NATIONS <G /=1. G/ nations <USA :ana$a Britain 7rance

German Ital Ja!an= control over (al* o*IM7 loan votes

". Russia is sometimes an in*ormal member o*t(e G/ but # nations <:(ina In$ia Sout(

Korea= t(at (ave muc( stron&er economiest(an Russia ant to become !art o* t(eParis :lub

#. T(e USA (as t(e &reatest IM7 votin& !oer

<1/= !uttin& it in t(e !oer seat on mostissues t(at re4uire an 3+ IM7 ma0orit

'. :ritics conten$ t(at t(e IM7 caters to an$is controlle$ b America>s economic

a&en$a

AGEN6A

T(e orl$s> most aYuent nations

$e!en$ on innovative &lobalservice sector !ro$ucts *or most o*t(eir &rot( so t(e antintellectual !ro!ert !rotection on

!atents co!ri&(ts etc. T(ust(ese Go$%illas are most intereste$in t(e DTO>s GATS <General

A&reement on Tra$e in Services=tra$e !ro&ram TRIP <Tra$eRelate$ as!ects o* Intellectual

Pro!ert=

)01 70*C;D T03 <*D;;A7 %A23A@*CT T03 42*@;3'7 *8 T03

1.8umanitarian concern

".Global !olitical stabilit

#.Smoot(er &lobal tra$e

'.Marets *or Desterncom!anies

T8E TIGER

T8E TIGER EBRA

TRA6EAGEN6A

T8E 8A;ENOT SOUT8ERN8EMISP8ERE NATIONS 8A;E A LOT

LESS O7F

1.Per ca!ita income".7orei&n 6irect Investment

#.In*rastructure

'.Tec(nolo&

+.Re!resentative stable&overnments

TDO STRIKES AGAINST6E;ELOPING NATIONS

1.Dea $emocracies

". Internal civil ars

#.Et(nic stri*e

'.Over!o!ulation

+.Le&ac o* colonialism

<economic !oliticaleH!loitation=

-.A&riculturebase$ economies

GLOBAL DEALT8 6ISTORTION At t(e start o* :"1 t(e ealt(iest

At t(e start o* :"1 t(e ealt(iest

"2 o* nations (a$F

1. 3- o* t(e &lobal G6P <vs. 1 *ort(e !oorest "2=

". 3" o* total &lobal eH!orts <vs. 1*or t(e bottom "2=

#. -3 o* total &lobal *orei&n $irectinvestment <vs. 1 *or t(e bottom"2=

'. /' o* &lobal !(one lines <vs. 1.+*or t(e bottom "2=

T(e DTO>s 6o(a <atar=6E;ELOPMENT AGEN6A <"221"22-=F

6E;ELOPMENT AGEN6A <"221 "22-=F

1. Im!act o* *ree tra$ea&reements on t(e GeneralSstem o* Pre*erences <Go$%illa

nations a&ree to en&a&e inim!ort substitutionVto im!orte Ti&er !ro$ucts instea$ o*

main& t(em at (ome=".Less Destern !olitical me$$lin&

into Ti&er aQairs

IN T8E GENE;A TALKS </2'=T8EUSA EU AGREE6 TOF

1. Re$uce *arm subsi$ies<33B annuall *or t(e USA +"B *or t(e EU=Vt(e

@*rameor *or establis(in&mo$alities in a&ricultureC

". Loer tariQs on e Ti&ereH!orts t(at Go$%illanations alrea$ mae at

AG SUBSI6IES AS O7 7ARMOUTPUT "22#

OUTPUT "22#

1.AustraliaF subsi$ies ere1.2 o* total Australian*arm out!ut

".:ana$aF +.-

#.USAF #3.5

'.Ja!anF ''./

+.EUF 1"1.'

Doul$ Go$%illa nations

be able to avoi$im!ort substitutionit(out a&ricultural

subsi$ies,

T8E @GREEN ROOMC PROBLEM1 T(e @' ua$C DTO members

1. T(e @' ua$C DTO members

<USA :ana$a EU Ja!an= o*tenbroer !rivateclose$ tra$e $ealsit( select ot(er nations

b!assin& Ti&er nations i&norin& t(eir nee$s

". T(e DTO *avors *ormin& a

steerin& committee o* aQecte$nations to coor$inate tra$e$ialo&ues in a *air trans!arent

an$ re!resentative manner

@7air tra$e is commerce it( acommitment to $evelo!in& e4uitable!artners(i!s beteen mareters in

!artners(i!s beteen mareters in(i&(l in$ustriali%e$ nations an$ loincome !ro$ucers in $evelo!in& re&ionso* t(e orl$. 7air tra$e creates t(eo!!ortunit *or businesses to increase

t(eir !ro)ts t(rou&( sociallres!onsible business !ractices *orconsumers to vote it( ever !urc(ase*or a more e4uitable orl$ an$ *or*armers to vie t(emselves not as ananonmous co& in t(e orl$ maret butas a valuable contributor to a &lobal

communit C

@7air tra$e coo!eratives !ro$uce a(ealt( alternative to lar&escalemanu*acturin& orin& mainl it(

manu*acturin& orin& mainl it(small businesses (ere orers earn a&reater return on t(eir labor an$!ro)ts are $istribute$ more e4uitablan$ o*ten reinveste$ into t(e local

communit in (ealt( clinics c(il$ caree$ucation sa*e orin& con$itions.Dorers learn lea$ers(i! an$or&ani%in& sills enablin& sel*relianteconomic $evelo!ment. Pro$ucers &ain&reater control an$ $ecisionmain&!oer over t(e use o* local resources.C

IS INSTANT 7REE TRA6E 7AIR,It as com!etitivel necessar *or most

o* t(e orl$>s ric(est <@Go$%illaC=

nations to &o t(ou&( !rotracte$!rotecte$ <non*ree= tra$e eras earlin t(eir (istor. T(e ere not stron&enou&( economicall or militaril toit(stan$ @*reeC tra$e. Man$evelo!in& <CebraC= nations com!laint(at *ree tra$e (as been !rematurel

*oiste$ on t(em b t(e DTO IM7be*ore t(e are rea$ &eneratin&economic (ar$s(i! !olitical

instabilit

@Ric( nations no (ector t(e !oor on t(eim!ortance o* *ree tra$e res!ect *orintellectual !ro!ert an$ (os!italit to

intellectual !ro!ert an$ (os!italit to*orei&n investors et avoi$e$ an$

re0ecte$ suc( !ractices (en t(e ric(nations ere climbin& t(e la$$er toar$s!ros!erit. T(e (!ocriticall tell t(e

!oor orl$ to $o as e sa not as e $i$.T(e Dest>s neoliberals <!rivateca!italists= (ave eit(er *or&otten orreritten t(eir secret (istor arm

tistin& to$a>s $evelo!in& nations to too!en u! to t(e *ree tra$e re&ime in t(emistaen belie* t(at *ree tra$e secure$t(e Dest>s current !ros!erit.C

6O DE NEE6 MORE 7REE TRA6E OR MORE 7AIR TRA6E,

1 International tra$e is ort( 12 million a

1. International tra$e is ort( 12 million aminute.

". Poor countries account *or onl 2.' !ercento* orl$ tra$e. Since 1532 t(eir s(are (asbeen cut in (al*.

#. T(e Unite$ Nations estimates t(at un*airtra$e rules $en !oor countries /22 billionever ear aQectin& #2 million !eo!le.

'. Income !er !erson in t(e !oorest countriesin A*rica (as *allen b "+ in t(e last "2

ears.+. T(e t(ree ric(est !eo!le in t(e orl$

control more ealt( t(an all -22 million int(e orl$>s !oorest countries.

-. Nearl (al* t(e orl$>s !o!ulation <".3billion !eo!le= lives on less t(an US" !er$a.

/ T(e !rices o* man !oor countries> e

/. T(e !rices o* man !oor countries> eeH!orts are at a 1+2ear lo.

3. At t(e last *ull meetin& o* t(e DTO t(eEuro!ean Union (a$ +22 ne&otiators an$8aiti (a$ none.

5. A*ter t(e last roun$ o* tra$e ne&otiations

ric( countries estimate$ t(at t(e oul$&ain b 1'1.3 billion !er ear an$ A*ricaoul$ be ".- billion !er ear orse oQ.

12.Global tra$e is re&ulate$ t(rou&( !rioritiesan$ !olicies set b international institutions

inclu$in& rules ma$e at t(e Dorl$ Tra$eOr&ani%ation an$ con$itions attac(e$ toloans !rovi$e$ b t(e Dorl$ Ban an$International Monetar 7un$. T(ese bo$iesare controlle$ b &overnments.

D8EN PROTE:TIONISM ISEPLOITATI;E NATIONALISMF

1. EPLOITATI;E

PROTE:TIONISMF One nationtries to raise its stan$ar$ o*livin& b loerin& anot(er

nation>s stan$ar$ o* livin&.". 6E7ENSI;E PROTE:TIONISMF

use$ to !revent *orei&ncom!anies *rom stealin&business *rom $omesticcom!anies

T8E 7AIR TRA6E MO;EMENT1. 7air tra$e is virtuall t(e onl

or&ani%e$ social movement t(at

strives to im!rove t(e economicsel*sucienc o* orers in$evelo!in& <communit ca!italism=

nations em!oer t(em to becomestae(ol$ers in &lobal tra$e.

". T(e *ree movement is bace$ b a

coalition o* international reli&ious$evelo!ment ai$ environmental social 0ustice or&ani%ations.

#. T(e *air tra$e &lobal coalition sees tore$uce !overt !romote sustainableeconomic $evelo!ment t(rou&( t(e *air

! &tra$e minimum !rice !ro&ram <$esi&ne$ to

!rice &oo$s (i&( enou&( to !a *or t(eir$irect cost !lus a contribution tosustainin& t(eir *uture !ro$uction=.

'. T(e 7airtra$e Labelin& Or&ani%ation <7LO=be&un in 155/ set stan$ar$s *or labelin&!ro$ucts as 7airtra$e :erti)e$. T(e(i&(est volume *airtra$e certi)cation

!ro$ucts inclu$e bananas (one coQeeoran&es cocoa cotton $rie$ *res( *ruits ve&etables 0uices nuts oil see$s4uinoa rice s!ices su&ar tea an$ ine.

+. 7LO:ERT <7airtra$e Labelin&Or&ani%ation :erti)cation= coor$inatest(e certi)cation maretin&

t(e certi)cation maretin& ins!ection o* *airtra$e !ro$ucts

t(rou&( a netor o* in$e!en$entins!ectors (o travel t(e orl$ asliaisons beteen *amilies tra$ers sellers.

-. T(e International 7airtra$eAssociation <I7AT= create$ in 1535 isa &lobal coalition o* a&ricultural

coo!s eH!ort mareters im!ortersretailers re&ional *airtra$e netors su!!ort or&ani%ations. I7AT (as #22member or&ani%ations in -2 nations.

/. In a$$ition to sustainable economic$evelo!ment !ricin& core *airtra$evalues inclu$e sa*e orin& con$itions

& &en$er e4uit environmental

!rotection orer !artici!ation in$ecisionmain& &eneral a$(erenceto t(e Unite$ Nations c(arter o* (umanri&(ts.

3. 7airtra$e certi)e$ sales in "22+ ereestimate$ at over 1B less t(an one(un$re$t( o* one !ercent o* total orl$

tra$e. As o* "22- 1.+M economicall$isa$vanta&e$ orers $irectl!artici!ate$ in *airtra$e initiatives +M bene)te$ *rom commerce.

5. T(e a$$itional !ro)t &enerate$ (en!ro$ucers b!ass interme$iate buersinstea$ sellin& $irectl to international buers

can be (i&(l si&ni)cant. 7or eHam!le in

1555 :entral American coQee &roers (osol$ to tra$itional mi$$le men buersavera&e$ #3 cents !er !oun$ com!are$ to1."- earne$ b *armers sellin& t(ou&( t(e

*air tra$e institutions.12. T(e *air tra$e sstem !laces a (i&( !riorit

on communit $evelo!ment in a$$ition to&uaranteein& *air !rices *or *armers. Dorers

it(in a communit !artici!ate in $eterminin&t(eir on economic $evelo!ment !rioritiesinclu$in& e$ucation clean ater (ealt( care in*rastructure $evelo!ment.

M:6ONAL6>S 7AIRTRA6E 6EAL DIT8TOMATO PI:KERS

1 In "22/ Mc6onal$>s nearl $ouble$ t(e

1. In "22/ Mc6onal$>s nearl $ouble$ t(e

a&es o* its 7lori$a mi&rant tomato !icersb increasin& t(e a&es !ai$ *or a bucet o*!ice$ tomatoes *rom '2 cents to /" cents.

". T(e $eal as ma$e in an arran&ement it(

t(e :oalition o* Immoalee Dorers (ic((as also broere$ a *air tra$e $eal it(Taco Bell.

#. @T(e Mc6onal$>s $eal sen$s a stron&

messa&e to t(e rest o* t(e *ast*oo$in$ustr t(at t(e lea$ers o* t(e in$ustr aretain& concrete ste!s to im!rove t(e liveso* orers o* (uman bein&s.C

7AIRTRA6E PRIN:IPLES<*rom t(e Americas Pro&ram

Inter(emis!(eric :enter=

1.Local an$ re&ional !ro$ucers an$service !rovi$ers s(oul$ be in control sobene)ts remain in t(eir communities.

".Laborers s(oul$ earn a *air a&e an$or in a (ealt( sa*e environment.

#.Interme$iar or&ani%ations t(at soa u!an$ eH!atriate !ro)ts s(oul$ beremove$ *rom t(e e4uation alloin&!ro$ucers to ee! a lar&er s(are o*

sales revenues it(out !assin& oneHcessive costs to consumers.'.Goo$s an$ services s(oul$ be

environmentall *rien$l an$ sociallres!onsible.

+. :ommunit $evelo!ment nee$s asell as environmental an$ socialcriteria s(oul$ be taen into

criteria s(oul$ be taen intoaccount in business $ecisions.

-. Pro$uct an$ !ro$ucer $iversits(oul$ be su!!orte$ an$increase$ o!!ortunities *or omen

s(oul$ be a !riorit./. D(en !ossible interme$iaries t(at

bu !ro$ucts $irectl *rom

!ro$ucers s(oul$ !rovi$e )nancialassistance suc( as $irect loans!re!aments or linin& !ro$ucersit( sources o* )nancin&.

3. T(e )nances mana&ement!olicies an$ business !racticeso* *air tra$e enter!rises s(o l$

o* *air tra$e enter!rises s(oul$

be o!en to !ublic scrutin.5. :onsumers (o are e$ucate$

re&ar$in& t(e im!ortance o*

!urc(asin& !ro$ucts an$services t(at su!!ort livin&a&es (ealt( orin&con$itions an$ environmental!rotection ill be illin& to !asli&(tl (i&(er !rices.

12. Gen$er e4ualit11. :a!acit buil$in&

<$evelo!in& t(e ca!acit o*!ro$ucers to (el!t(emselves=.

1". Environmental !rotectiont(rou&( res!onsible!ro$uction !ractices t(atsustain !(sical (umanassets *or successive

&enerations

KE9 PROBLEMS O7 7AIR TRA6E<*rom t(e Americas Pro&ram

Inter(emis!(eric :enter=

1.7ree tra$e *avors lar&e cor!orationsnot MeHico>s man smallscale*armers artisans an$ businesses.

".Smaller !ro$ucers an$ service!rovi$ers lac ca!ital or access tocre$it tec(nical an$ maretin&assistance an$ $eliver sstems.

#.T(e eH!ort orientation o* MeHico>seconom calls *or t(e !ro$uction o*

basic commo$ities (ic( *ace stee!com!etition *rom *orei&n subsi$i%e$!ro$ucts are (i&(l vulnerable to&lobal !rice uctuations an$ &enerate

minimal !ro)t mar&ins

'.7orei&n sales are usuallmana&e$ b nonlocal

i i i i i

com!anies minimi%in&

bene)ts *or !ro$ucercommunities.

+.A&riculture manu*acturin&an$ tourism o!erations un$er!ressure to com!ete accor$in&

to t(e terms o* *ree tra$eoverloo soun$ naturalresource mana&ement

!ractices

T8E SIE

SU::ESS O7

T8E 7AIR

MO;EMENT

T8E LI7ELINE O7 ::s

1 7amil small local

1. 7amil small localbusinesses

". Sustainable incomes!rovi$e$ b t(e ;A:

#. Protection *rom TReH cor!s

'. Subsi$*ree

com!etition*rom Go$%illa

nations

+. 7louris(in&@*air tra$eC

In "22- 7air tra$e &lobal revenues ere".#B but re!resente$ less t(an one(un$re$t( o* a !ercenta&e !oint in total

! & !orl$ tra$e o* !(sical !ro$ucts. Over1.+M !ro$ucers ore$ in *air tra$eor&ani%ations but +M more members o**air tra$e communities also bene)te$.

In "22" *air tra$e sales in t(e USA:ana$a t(e Paci)c Rim ere "+1Mit( t(e &reatest sales &rot( o*coQee. #"22 !eo!le ere em!loe$ in

t(ese re&ions. In "222 t(ere ere -22*air tra$e (olesalers in t(e USA :ana$a an$ over /222 retailers.

AN IMPOSSIBLE 6REAM,Man Desterners oul$ !robabl

$ i* i t( t it t

res!on$ i* &iven t(e o!!ortunit to

!a a +12 surc(ar&e on !ro$uctsma$e in lo a&e ca!italist nations.BUT no suc( o!!ortunit is *easible

un$er t(e invisible ca!italist sstemo* su!!l c(ain cor!orate$ominators <DalMart &iant *oo$

con&lomerates a&riculture

trade institutions

Documents

united states trade protectionism: institutions, norms

institutional determinants of agro-food trade ·...

institutions, globalization and trade

institutions, technology, and trade

the effect of trade agreements and institutions on exports

lecture 8 us trade policies and institutions econ 340

international institutions & trade implications assignment-...

the trade corruption trap: n-s trade with weak institutions

options for trade, finance and development: getting the...

geography, international trade and institutions: an

good neighbors: trade, culture, and institutions in the

international economic and trade institutions

on institutions in trade, growth, and investment studies

how do institutions trade around corporate news?*

trade, institutions and ethnic tolerance: evidence from...

trade, institutions and religious tolerance: evidence from...

legal institutions and international trade...

european union trade policy domestic institutions and...

institutional quality and international trade - a....

institutions in international trade and fdi - cek ·...