Multilateralism, Regionalism and Bilateralism in Trade and Investment: 2006 World Report on Regional Integration

279 Pages·2007·2.482 MB·English

by  Philippe de Lombaerde (eds.)

D Philippe De Lombaerde
e

L
Editor
o
m
b
a
e
r
d
e

E
d
.
2006 World Report on Regional Integration
U N U S R 1
NITED ATIONS NIVERSITY ERIES ON EGIONALISM
Multilateralism,
(cid:2)
Regionalism and
M
u
l
t
i
l
a Bilateralism in Trade
t
e
r
a
l
i
s
m
, and Investment

R
e
g
i
o
n
a
l
i
s
m
In Collaboration with:

a
n UNCTAD, ECA, ECLAC, ESCAP, ESCWA, UNECE, UNU-WIDER
d

(cid:5)(cid:6)฀(cid:4)
MULTILATERALISM,REGIONALISM
ANDBILATERALISMINTRADE
ANDINVESTMENT
UnitedNationsUniversitySeriesonRegionalism
Editor,PhilippeDeLombaerde
Althoughthemostrecentyearshaveleftuswithanumberof‘failed’orstagnating
integration projects in different parts of the world, the underlying idea behind this
WorldReportisthat–fromalongertimeperspective-thereisaneedforastronger
regional governance level, situated between the national and global levels. This is
relatedtothesimplefactsthat,ontheonehand,manychallenges(economic,security,
environmental,…)posedtohumanitycannotbeadequatelyaddressedatthenational
level,andthat,ontheotherhand,aneffectivemultilateralsystemneedssomeform
ofregionalorganisation.Thisregionalgovernanceleveliscomplementaryto,notin
contradiction with, the other governance levels in a modern and flexible system of
multi-levelgovernance.
Awareofthisemergingreality,theUnitedNationsUniversity-ComparativeRegional
IntegrationStudies(UNU-CRIS)tooktheinitiativetolaunchanewseriesofWorld
Reports in order to monitor trends and prospects for regional governance. This
has been made possible with the support of the GARNET Network of Excellence,
UNCTAD,thefiveregionalUNEconomicCommissions,andUNU-WIDER.
ThisWorldReportonRegionalIntegrationfillsagapinthesupplyofworldreportsand
islikelytobecomealeadingreferencepointforfuturedebatesamongpolicy-makers,
academicsandthebroaderpublicontheroleofregionsinworldgovernance.
Multilateralism,
Regionalism and
Bilateralism in Trade
and Investment
2006 World Report on Regional Integration
PhilippeDeLombaerde(editor)
InCollaborationwith:
UNCTAD,ECA,ECLAC,ESCAP,ESCWA,UNECE,UNU-WIDER
AC.I.P.CataloguerecordforthisbookisavailablefromtheLibraryofCongress.
ISBN978-1-4020-5950-6(HB)
ISBN978-1-4020-5951-3(e-book)
PublishedbySpringer,
P.O.Box17,3300AADordrecht,TheNetherlands.
www.springer.com
Printedonacid-freepaper
AllRightsReserved
©2007Springer
Nopartofthisworkmaybereproduced,storedinaretrievalsystem,ortransmittedinanyformorby
anymeans,electronic,mechanical,photocopying,microfilming,recordingorotherwise,withoutwritten
permissionfromthePublisher,withtheexceptionofanymaterialsuppliedspecificallyforthepurpose
ofbeingenteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.
ENDORSEMENTS
The EU Framework VI GARNETNetwork of Excellence was created to bundle the
capacityofmorethan40universitiesinordertojointlyundertakeinnovativeresearch
onglobalisation, regionalisationandtheroleoftheEU,andregionsingeneral, in
worldgovernance.Inthiscontext,GARNETactivelysupportedthelaunchingofthis
newWorldReportonRegionalIntegration.Theseriesislikelytoestablishitselfas
an obligatory reference for policy-makers and academics involved in thinking and
mouldingtheglobalgovernancearchitectureofthefuture.Itfillsagapintheexisting
supplyofworldreports.
ProfessorRichardHiggott,DirectoroftheCentrefortheStudyofGlobalisationand
Regionalisation at the University ofWarwick, and Senior Scientist and Director of
theGARNETNetworkofExcellence
The African, Caribbean and Pacific Group of States (ACP Group) welcomes the
World Report on Regional Integration, which provides a holistic and pragmatic
perspective on the role of regions in world governance and international affairs.
Themostsignificantanduniquevalueofthisvolumeisthatitpresentsanenhanced
understandingoftheprocessesofregionalintegrationinpolitical,economic,social
andculturalspheres.ItisaninvaluablereferencefortheACPGroupinitsendeavour
tofurtherenhancesolidarityandunityamongstitsmemberstates,whilstaddressing
thechallengesofpovertyeradication,sustainabledevelopmentandglobalization.
SirJohnR.Kaputin,KBE,CMG,Secretary-GeneraloftheACPGroup
Globalgovernanceisaconcernofnotonlyglobalorganisationsbutalsoofallindivid-
ualstatesandofregionalco-operationagreementsamongsovereignstates.In2001,
theUnitedNationsUniversityhaslaunchedUNU-CRIS,aresearchandtrainingpro-
grammeoncomparativeregionalintegrationtostudytheroleofregionalintegration
in global governance. The present first volume of the World Report on Regional
IntegrationisatimelyproductoftheresearchundertakenatUNU-CRIS.Thisnew
seriesofWorldReportswillcertainlycontributetothediscussionontheinteraction
between regional and global governance. And by bringing together insights from
differentpartsoftheUNsystem, inparticularthefiveUNregionaleconomiccom-
missionsandUNCTAD,thisreportwillalsocontributetoabetterunderstandingof
theroleofregionsintheUN.
Hans van Ginkel, Under-Secretary-General of the United Nations and Rector
ofUNU
v
vi ENDORSEMENTS
TheWorldReportonRegionalIntegrationbringstogetherawell-balancedmixof
economicanalysis,factsandpoliticalperspectivesonthetopicofregionalintegra-
tion.Themostvaluableanduniquecontributionofthisvolumeistheenhancedclarity
itbringstothecomplexpictureoftradeandinvestmentintegration,theentanglement
ofwhichpointstotheneedformoreeffectiveregionalgovernanceasabuildingblock
ofmultilateralgovernanceinthisarea.Astheworld’smostdynamictradingregion,
AsiaandthePacificisakeyplayerinthisprocess,andtheUNESCAPsecretariat,in
itsservicetotheregion,willcontinuetoaccordhighprioritytothispolicyobjective.
Kim Hak-Su, Under-Secretary-General of the United Nations and Executive
SecretaryofUNESCAP
TABLE OF CONTENTS
Endorsements v
Acknowledgements ix
Introduction 1
PhilippeDeLombaerdeandLukVanLangenhove,
UNU-CRISandGARNET
SectionI Multilateralism,Regionalism
andBilateralisminTradeandInvestment 5
Chapter1 DevelopingCountries’ParticipationinRegional
Integration:Trends,ProspectsandPolicyImplications 7
UNCTAD
Chapter2 PreferentialTradingArrangementsforDeveloping
Countries 25
BasudebGuha-Khasnobis,UNU-WIDER
Chapter3 MakingMulti-LevelRulesWork:TradeandInvestment
RulesinRegionalandBilateralAgreements 37
StephenWoolcock,UNU-CRIS,andLSE
Chapter4 ReconcilingRegionalismandMultilateralism:Towards
MultilevelTradeGovernance 59
BrigidGavin,UNU-CRIS
SectionII RegionalReports 73
Chapter5 Asia-PacificRegionalismQuoVadis?Chartingthe
TerritoryforNewIntegrationRoutes 75
TizianaBonapace,MiaMikic,TradeandInvestmentDivision,
ESCAP
Chapter6 RegionalIntegrationintheWesternHemisphere:
AnOverview 99
InternationalTradeandIntegrationDivision,ECLAC
Chapter7 RegionalEconomicIntegrationinAfrica 127
ECA
vii
viii TABLE OF CONTENTS
Chapter8 DevelopmentsinRegionalIntegrationinWestern
AsiaandArabRegion 159
ESCWA
Chapter9 TradeandIntegrationin(South)EastEurope,
Caucasus,andCentralAsia 197
UNECE
Chapter10 RegionalIntegrationintheEuropeanUnion:
EnlargementWithoutConstitution 229
UNU-CRIS
Annex UNU-CRIS/GARNET 255
ACKNOWLEDGEMENTS
This Report is the result of a collaborative effort involving several institutions and
individuals.
Wewouldliketothankanumberofpeopleinparticular.Firstofall,wewouldlike
tothankRichardHiggott,leadscientistoftheGARNETNetworkofExcellenceand
directoroftheCentrefortheStudyofGlobalisationandRegionalisation(CSGR)and
professor atWarwick University, for his support to this initiative and his readiness
tomergetheeffortsofGARNETandtheUNorganisations.Second,wewouldlike
tothankThoukaAl-Khalidi,formerdirectoroftheGlobalizationandRegionalInte-
grationDivision(GRID)atESCWAforhercrucialroleinforgingthecollaborative
relationshipbetweenUNUandtheUNRegionalCommissions.
We also want to mention the following people without whom this Report would
nothavebeenpossible:
From the UN Commissions: Hakim Ben Hammouda and Joseph Atta-Mensah
(ECA),OsvaldoRosalesandMikioKuwayama(ECLAC);RaviRatnayake,Tiziana
Bonapace and Mia Mikic (ESCAP); Nazem Abdalla and Abulgasim Abdullah
(ESCWA);andVirginiaCram-MartosandLorenzaJachia(UNECE).
AtUNCTAD:LakshmiPuri,BonapasOngugloandLucianCernat.
AtUNU-WIDER:BasudebGuha-Khasnobis.
From the GARNET Network of Excellence: Michael Schulz of Göteborg
University.
AtSpringerScience+BusinessMedia:MyriamPoortandEstherOtten.
At UNU-CRIS: Aurora Mordonu, Ana-Cristina Costea, Isabella Torta, Giulia
Pietrangeli, SteveWoolcock, BirgerFühne, BrigidGavin, MalgorzataWesolovska,
ElkeHoubaert,and,lastbutnotleast–EvelineSnauwaert.
PhilippeDeLombaerde
LukVanLangenhove,
Bruges
ix