Negotiating a Preferential Trading Agreement: Issues, Constraints and Practical Options

282 Pages·2009·1.66 MB·English

by  Sisira Jayasuriya

Negotiating a Preferential Trading Agreement

Negotiating a
Preferential Trading
Agreement
Issues, Constraints and Practical
Options
Edited by
Sisira Jayasuriya
School of Economics and Finance, La Trobe University,
Melbourne, Australia
Donald MacLaren
Department of Economics, University of Melbourne,
Melbourne, Australia
Gary Magee
School of Economics and Finance, La Trobe University,
Melbourne, Australia
Edward Elgar
Cheltenham, UK • Northampton, MA, USA
© Sisira Jayasuriya, Donald MacLaren and Gary Magee 2009
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system or transmitted in any form or by any means, electronic,
mechanical or photocopying, recording, or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
The Lypiatts
15 Lansdown Road
Cheltenham
Glos GL50 2JA
UK
Edward Elgar Publishing, Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book is available from the British Library
Library of Congress Control Number: 2009921522
ISBN 978 1 84720 481 3
Printed and bound by MPG Books Group, UK
Contents
List of fi gures vii
List of tables viii
List of contributors ix
List of abbreviations xi
Preface xiv
PART I: INTRODUCTION AND OVERVIEW
1 Introduction 3
Sisira Jayasuriya and Gary Magee
2 Review of international experience: ex post studies of other
PTAs and implications for PTA design 12
Russell Hillberry
3 Multilateralism and FTAs: a Chinese perspective on an
Australia–China FTA 35
Dashu Wang
PART II: SECTOR-SPECIFIC ISSUES
4 Manufacturing products and related issues in a free trade
agreement between China and Australia 51
Neville Norman
5 Agriculture 74
Donald MacLaren
6 Services in PTAs – donuts or holes? 97
Philippa Dee and Christopher Findlay
7 Resources sector and foreign investment 129
Yinhua Mai and Philip Adams
PART III: KEY ISSUES FACING FTA NEGOTIATORS
8 Intellectual property in a possible China–Australia free trade
agreement 155
Kimberlee Weatherall
v
vi Contents
9 Rules of origin 170
Peter Lloyd and Donald MacLaren
10 Settlement of disputes under free trade agreements 192
Jeff Waincymer
11 Safeguards, anti-dumping actions and countervailing duties 219
Martin Richardson
12 Ensuring compliance between a bilateral PTA and the WTO 235
Andrew D. Mitchell and Nicolas J.S. Lockhart
Index 255
Figures
2.1 Cumulative notifi cations of PTAs to the WTO 13
2.2 Diff erentiated commodities in exports (1962–2000) 16
2.3 USITC ex post estimates of welfare changes in fi ve trade
agreements 26
5.1 Percentage PSE and CSE, 1986–2005 80
5.2 Total support estimate as a percentage of GDP (%TSE),
1986–2005 82
5.3 %PSE for selected commodities, China and OECD 87
7.1 Estimating the eff ects of an Australia–China FTA 130
7.2 China: production and consumption of crude oil 1965–2005,
million tonnes 131
7.3 China: consumption, production and trade of crude oil 2005,
million tonnes 131
7.4 China’s high gross domestic savings 1980–2004, as
percentage of GDP 140
7.5 China: current account surplus 1982–2004, million USD 141
7.6 China: total amount of FDI actually used, billion USD 144
7.7 Simulating the eff ects of investment liberalization 146
11.1 AD initiations by China 223
11.2 China’s anti-dumping cases, 2002–4 223
vii
Tables
3.1 Merchandise export shares by selected countries 39
3.2 Merchandise import shares by selected countries 40
3.3 Top ten exports from Australia to China (2006) 42
3.4 Top ten imports from China to Australia (2006) 43
5.1 Nominal rates of assistance (NRA in percentage) for selected
agricultural commodities, Australia, 1985–9 to 2000–3 81
5.2 %PSE for China, 1993–2003 87
6.1 Template for scoring cross-border trade in services 110
6.2 Template for scoring investment 114
6.3 Template for scoring movement of natural persons 117
6.4 PTA agreements 121
6.5 Comparing PTAs and the GATS – cross-border trade and
general measures 123
6.6 Comparing PTAs and the GATS – investment 125
6.7 Comparing PTAs and the GATS – movement of people 126
7.1 China: imports from the world of resource products 132
7.2 China: imports from Australia of resource products 133
7.3 Baseline: the business-as-usual scenario 134
7.4 Levels of tariff -equivalent border protection on bilateral
merchandise trade between Australia and China 135
7.5 Removing tariff equivalents on merchandise trade (full
liberalization in 2006): eff ects on the resource sectors 136
7.6 Removing tariff equivalents on merchandise trade (full
liberalization in 2006): trade liberalization-induced
endogenous productivity improvement 139
7.7 Australia–China FTA: eff ects of investment liberalization 147
7.8 Australia–China FTA: eff ects of removing border protection
on merchandise trade and investment liberalization 148
9.1 Main features of ROO systems 177
11.1 Australian AD initiations against China, 1989–2006 224
viii
Contributors
Philip Adams, Centre of Policy Studies, Monash University, Melbourne,
Australia
Philippa Dee, Crawford School of Economics and Government, Australian
National University, Canberra, Australia
Christopher Findlay, School of Economics, University of Adelaide,
Adelaide, Australia
Russell Hillberry, School of Economics, University of Melbourne,
Melbourne, Australia
Sisira Jayasuriya, School of Economics and Finance, La Trobe University,
Melbourne, Australia
Peter Lloyd, Department of Economics, University of Melbourne,
Melbourne, Australia
Nicolas J.S. Lockhart, Sidley Austin Brown & Wood LLP, Sydney,
Australia
Donald MacLaren, Department of Economics, University of Melbourne,
Melbourne, Australia
Gary Magee, School of Economics and Finance, La Trobe University,
Melbourne, Australia
Yinhua Mai, Centre of Policy Studies, Monash University, Melbourne,
Australia
Andrew D. Mitchell, Melbourne Law, University of Melbourne, Melbourne,
Australia
Neville Norman, Department of Economics, University of Melbourne,
Melbourne, Australia
Martin Richardson, School of Economics, Australian National University,
Canberra, Australia
Jeff Waincymer, Faculty of Law, Monash University, Melbourne,
Australia
ix