time to rethink the wto system: the united states, the european union, and world trade

8/8/2019 Time to Rethink the WTO System: The United States, the European Union, and World Trade

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BRUSSELS FORUM PAPER SER IES

Time to Rethinkthe WTO System

The United States, the European Union,and world trade

Hugh Corbet

President

Cordell Hull Institute

Joe Guinan

Program OfficerThe German Marshall Fund of the United States


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2008 Te German Marshall Fund o the United States. All rights reserved.

No part o this publication may be reproduced or transmitted in any orm or by any means without permission

in writing rom the German Marshall Fund o the United States (GMF). Please direct inquiries to:

Te German Marshall Fund o the United States

1744 R Street, NW

Washington, DC 20009

1 202 745 3950

F 1 202 265 1662

E [email protected]

Tis publication can be downloaded or ree at http://www.gmus.org/publications/index.cm. Limited print

copies are also available. o request a copy, send an e-mail to [email protected].

GMF Paper Series

Te GMF Paper Series presents research on a variety o transatlantic topics by sta, ellows, and partners o theGerman Marshall Fund o the United States. Te views expressed here are those o the author and do not neces-

sarily represent the view o GMF. Comments rom readers are welcome; reply to the mailing address above or by

e-mail to [email protected].

About GMF

Te German Marshall Fund o the United States (GMF) is a non-partisan American public policy and grant-

making institution dedicated to promoting greater cooperation and understanding between the United States

and Europe.

GMF does this by supporting individuals and institutions working on transatlantic issues, by convening leaders

to discuss the most pressing transatlantic themes, and by examining ways in which transatlantic cooperation can

address a variety o global policy challenges. In addition, GMF supports a number o initiatives to strengthendemocracies.

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maintains a strong presence on both sides o the Atlantic. In addition to its headquarters in Washington, DC,

GMF has seven oces in Europe: Berlin, Bratislava, Paris, Brussels, Belgrade, Ankara, and Bucharest.

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please visit www.brusselsorum.org.


3/25

Time to Rethink the WTO System

The United States, the European Union, and world trade

Brussels Forum Paper Series

March 2008

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4/25

Time to Rethink the WTO System 3

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Is the Doha Round Salvageable?

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Introduction

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5/25

The German Marshall Fund of the United States4

Whatever happens

in the Doha Round

negotiations,

the longer-term

interests of the

United States, the

European Union,

and the world

economy as a

whole lie in the

maintenance and

strengthening of

the multilateral

trading system.

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Outline of the Paper

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1961

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T D R b T - b w Tv b b T w w b b b j g w B g b vg

v j WTO , g -q b,

1 F Bz C M- g, Rb A Bb, W G w S F, Gg WTO Ng T, C H I, W-g, DC, Nvb 3, 3, Trade Policy

Analyses, V 5, N 13, wwwg


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I g , w b , gg WTO I g g w

v g w C, I, Bz gg- w T w A E , , j WTO vg g W E U U S g v b b g D R g, vg v

b g bg vb v T b g v b bz

Origins and Evolution of the GATT System

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3 A g , b g g b, g , v w x-g , , , w b w g

A B W 1944,gv v -b, w-b, g I 194647, gv g G Ag T T(GATT), gg g , w

T GATT 193 w bgg--gb b j g

w A w 199, USCg v S-Hw TA 193, j b Lg Nw g g Gv

T S-Hw A, w v w w,4 q -- w A g ww bg A j g g x , g g v W w $6 b $4 b5 S-Hw w-g U Sw, 193, B b Cw b b CH gv j US g b 6

4 R H, The American Political Tradition, P B, The Dark Valley: A Panorama of the 1930s (NwY: Vg, ), 6

5 S Yb Lg N 196-1935,

Ew G, Freedom from Want: American Liberalism andthe Global Economy (Nw Y: S S P, 7), 79

6 Rb S,John Maynard Keynes: Fighting for Freedom,19371946(Nw Y: Vg, 1), 1 A vw , w w g , Cw g g b LB, P O W, Hg Cb (),Trade Strategy for the Asia-Pacific Region (L: A &Uw, 197)


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C H, US 19331944 U N, g g b w A vnon-discrimination , bv g G D w w O jg F D Rvb, H v b , gg T Ag A 1934, wz US g

-w g bg 1947 Rg x -w , H w:

U v w ; g, b ,w w Tg zg w vv, I , w g w w b w b j

vg g , b g b w, w g v b g

Role of the Marshall Plan

F 1945 196, U Sw b, w, bz GgC M, H US , E RvPg W E v Hv Uv J 5, 1947:

7 M A B, Cautious Visionary: Cordell Hull and TradeReform, 19331937(K, OH: K S Uv P, 199)

C H,Memoirs of Cordell Hull(Nw Y: M,194), C Hg, Rv C H Lg T, C H I, Trade Policy Analysis, V 5,N 4, M 3,

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gg C W b bzg w A 193 w bg bb N j - v gw g v w gwgw T M P g g W E A $9b w U S C W G, F, I, GB, N, Bg, G

A g M P w bg U S , ,g USx w G DB A 194 w wg bg g j T v w vw v g w g US w

T M P w g Ogz E E C-(OEEC), b P Ogz E C- Dv (OECD) I 195, OEEC

9 C b Gg C M, US , Hv Uv J 5, 1947

The Marshall Plan

was an economic

means to tie the

West together in

the emerging Cold

War by liberalizing

international trade

and capital flows.


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Role of the GATT System

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11 F w , Dv S L, The Wealth andPoverty of Nations (Nw Y L: WW N, 199)


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Non-discrimination

has been the

cornerstone of

the multilateral

trading system,

even if since the

1960s it has been

more honored in

the breach than in

the observance.

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, bg, , , b -, x v g national treatment v g most-favored-nation(MFN) treatment I, - b g, v 196 b b bv

Tg w WE w , v US GATT w A b E C w T R 1957 g v b g F,I, W G, N, Bg, Lxbgw w E , w gg g w C g b - ,

1 T w g g GATT : Gv-I C, 1947; A

C, 1949; Tq C, 195-51; Gv-IIC, 195556; D R, 19661; K R,196367; T R, 197479; Ug R, 19694

F v v GATT wg , P A M,ALong Term View on the Doha Round and the WTO, GM F U S, 7

b C Ag P(CAP), W E w

Developing Countries in the GATT System

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w -z , vg b 197, g v U N, g w (NIEO) T Rg 197379 w bg

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g F , vg w g A XVIII, vg v T 1966, wx g g GATT P IV,vg vg g Nx MFN, -g GATT ( A I XII), wwv gz

I 196 197, w x g gw vg q gA w vg b b q,


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Difficulties in the Tokyo Round

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13 Rb E H, Developing Countries in the GATT LegalSystem (A, B S: Gw, TP R C, 197)

14 T Hb R, Trends in International Trade (Gv:GATT, 195), GATT bz g T w G- Hb (), Rb C, J M, J Tbg

15 Hg Lv G T R Pb, PolicyPerspectives for International Trade and Economic Policies , RR (P: OECD, 197) J R w C E C

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16 C I T Iv P,United States International Economic Policy in an InterdependentWorld, W R (Wg, DC: Exv O P, 1971), 6 T w b AbW, IBM xv

17 M b, Rb E Bw, Non-tariff Distortionsof International Trade (Wg, DC: Bg I,197), G V Cz, Hidden Barriers to In-ternational Trade (L: T P R C, 197)

1 F v , w b D G J, World Agriculture in Disarray, (L: M, T P RC, 1973) A v w b 1991


11/25


The Uruguay

Round

negotiations

were only partly

successful in

extending the

multilateral

trade-liberalizing

process to

agriculture,

doing little more

than agree to a

framework for

tackling domestic

subsidies, market

access, and export

competitionthe

three pillars of

farm support.

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19 S, x, V Cz P, Industrial Policies inthe European Community (L: M, TP R C, 191)

Success of the Uruguay Round

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12/25


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Misadventures of the Doha Round

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Negotiations in Historical Perspective

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13/25

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Loss of General Consensus

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JP H,Making Trade Policy in the European Community(L: M, T P R C,1993; Nw Y: S M P, 1993) P H w B Fg Cw O g v


14/25


Governments

everywhere

appear to be

paying little

heed to the twin

purposes of

the multilateral

trading system:

trade liberalizatio

and institutional

stability.

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Background to the Deadlock

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How the Impasse Developed

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15/25

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4 A g g E U g b S Ev, TP: T R? A S (), FragmentedPower: Europe and the Global Economy (B: Bg B7), 6193


16/25


Hopes for a

breakthrough in

2007 became

less probable as

realities impinge

more and more o

the international

situation. The

subsequent

events did not

augur well for th

future of the wor

trading system.

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5 S E Ez M L C, Eg TW Wg, Foreign Affairs, Nw Y, M-J 7


17/25

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What is to be Done?

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6 E Z, Sv WTO D R,Forbes, Nw Y, M 1, 7

7 F , w B , G Bw,v G ( g) Ob 1, 7, - , b w w b q g


18/25


The biggest

obstacle to the

liberalization

of agricultural

trade has been

the duopoly of

the European

Union and the

United States.

Both have to be

induced someho

to reconsider

their positions.

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WTO , bz g

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O g , D

R g, bgg b bz WTO b E U U S B v b w

Protectionist Agricultural Policies

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g w w vg , g v , w

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w, MS R 199, w Ag g Lxbg g M T Rvw CAP 3

H W, US g, g Ag Aj A 1933


19/25

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con vullaorem

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ulputem iure

velendrer sequat.

Ummy nissis eum

dolummy nullaor

amconsecte

exercilisl ut

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9 F w D R g w g E U U S, Dv B T Jg,

Meeting Future WTO Commitments on Domestic Support: TheImplications of Ambassador Falconers July 2007 Proposals for theEuropean Union and the United States, GM F U S, B Wg,DC, Sb 7

O CAP vg , A Mw, The Development Interest in Reform of theEuropean Unions Common Agricultural Policy, G M F U S, Nvb 7

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b

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A b E C, H C g b x, g g 3 , w gx U g g,


20/25

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21/25


Although

agriculture has

been the major

obstacle to

progress in the

Doha Round

negotiations,

progress has also

been held up by

the developing

countries, which

have not been

ready to reduce

their trade

restrictions.

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Developing Countries in the WTO System

Ag g b j b g D R g,g b b vg, w v b w


22/25


23/25


Trade policy in the

European Union

is struggling to

find coherence.

It is constantly

wrestling with

competing

priorities in

decision-making

processes that

inhibit the blocs

effectiveness

and capacity

for leadership.

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24/25

Iriuscidunt verci

tinciduisi. Lis ad

elessi. Um alis

dolor si. Ing eum

dolorem nullaor

tionseq uipsum

ipsusto dolore

feum quiscil iscil

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C w w?


25/25

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time to rethink the wto system: the united states, the european union, and world trade

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