Table Of ContentThe World Trade System
The World Trade System
Trends and Challenges
Jagdish N. Bhagwati, Pravin Krishna, and
Arvind Panagariya, editors
The MIT Press
Cambridge, Massachusetts
London, England
© 2016 Massachusetts Institute of Technology
All rights reserved. No part of this book may be reproduced in any form by any electronic
or mechanical means (including photocopying, recording, or information storage and
retrieval) without permission in writing from the publisher.
This book was set in Sabon LT by Toppan Best-set Premedia Limited. Printed and bound
in the United States of America.
Library of Congress Cataloging-in-Publication Data
Names: Bhagwati, Jagdish N., 1934– editor. | Krishna, Pravin, editor. |
Panagariya, Arvind, editor.
Title: The world trade system : trends and challenges / edited by Jagdish N.
Bhagwati, Pravin Krishna, and Arvind Panagariya.
Description: Cambridge, MA : MIT Press, 2016. | Includes bibliographical
references and index.
Identifiers: LCCN 2016016599 | ISBN 9780262035231 (hardcover : alk. paper)
Subjects: LCSH: International trade. | International economic relations.
Classification: LCC HF1379 .W676 2016 | DDC 382/.9--dc23 LC record available at
https://lccn.loc.gov/2016016599
10 9 8 7 6 5 4 3 2 1
Contents
Preface vii
Acknowledgments ix
1 The World Trade System Today 1
Jagdish N. Bhagwati, Pravin Krishna, and Arvind Panagariya
I Issues in Trade Policy 23
2 Border Tax Equalization 25
Steve Charnovitz
3 Trade, Poverty, and Inequality 55
Devashish Mitra
4 Dial PTAs for Peace: The Influence of Preferential Trade Agreements
on Litigation between Trading Partners 91
Petros C. Mavroidis and André Sapir
5 Antidumping Provisions in Preferential Trade Agreements 117
Thomas J. Prusa
6 The Bali Trade Facilitation Agreement and Rulemaking in the
WTO: Milestone, Mistake, or Mirage? 149
Bernard Hoekman
7 Agriculture: Food Security and Trade Liberalization 193
Stefan Tangermann
vi Contents
II Regional Perspectives 229
8 The Trans-Pacific Partnership: Perspectives from China 231
Dimitar D. Gueorguiev and Mary E. Lovely
9 Transatlantic Free Trade: The Viewpoint of Germany 267
Gabriel Felbermayr and Rahel Aichele
10 The Abolition of Antidumping Measures in the EU: An Example
and Inspiration for the TTIP 317
Jonas Kasteng
List of Contributors 383
Index 385
Preface
This volume, edited by Professors Jagdish Bhagwati and Arvind Pana-
gariya of the School of International and Public Affairs (SIPA) at Colum-
bia University and Professor Pravin Krishna of the School of Advanced
International Studies (SAIS) at Johns Hopkins University, is the product
of a deep collaboration between the two institutions and represents a
state-of-the-art analysis of the important trends in the world trading
system today. It should prove to be an important contribution to the
ongoing debate in the United States about the international trading sys-
tem, the merits of mega-regional initiatives such as the Trans-Pacific
Partnership (TPP) Agreement and the Trans-Atlantic Trade and Invest-
ment Partnership (TTIP), and the future role of the World Trade Organi-
zation (WTO).
The contributors to this volume include some of the world’s leading
trade economists and lawyers. The essays focus on a cluster of the most
pressing issues facing the global trading system today, some widely
discussed and others understudied and deserving of more scrutiny. The
negotiation of multilateral rules and the Doha “development round”
negotiations that started in 2001 have experienced a virtual demise,
and international trade agreements are increasingly controversial, both
within countries and in relations between them. This volume clarifies
where progress has been achieved at the multilateral level, the emergence
and spillover consequences of regional trade agreements and their effect
on the multilateral system both economically and politically, and the
nature and consequences for both developed and developing economies.
Analytical and empirical, these illuminating essays advance our under-
standing of the evolving nature of the international trading system and
should be read by anyone with an interest in understanding what is at
stake.
viii Preface
Merit E. Janow
Dean and Professor of Practice, International Economic Law & Interna-
tional Affairs
School of International and Public Affairs (SIPA), Columbia University
Vali Nasr
Dean
School of Advanced International Studies (SAIS), Johns Hopkins
University
Acknowledgments
The landscape of the international trade system has undergone substan-
tial change in recent decades. While many multilateral successes were
achieved under the GATT, the failure of the WTO member countries
to successfully close the Doha Round of trade negotiations has now
engendered a mood of pessimism regarding the future of the multilat-
eral system. Countries have turned to preferential (and thus discrimina-
tory, albeit GATT-legal) trade agreements and many new deals are
now under negotiation, including the “mega-regional” agreements—the
Trans-Pacific Partnership (TPP) between the United States and Pacific
Rim countries and the Transatlantic Trade and Investment Partnership
(TTIP) between the United States and the European Union. At the same
time, developing countries having expanded their participation in inter-
national trade, challenging the international system to accommodate
their interests and aspirations. Finally, worsening global economic con-
ditions and a populist focus on the alleged links between the inequality
of incomes within countries and globalization have generated a protec-
tionist backlash. This has been, for instance, a dominant theme in the
ongoing presidential campaign in the United States.
In an effort to assess these important trends, the School of Interna-
tional and Public Affairs (SIPA) at Columbia University and the School
of Advanced International Studies (SAIS) at Johns Hopkins University
organized two back-to-back conferences in the fall of 2014 titled “Chal-
lenges Facing the World Trade System,” with panels and research presen-
tations at both locations involving complementary contributions by
leading scholars and policy makers. This volume gathers together the
papers from these conferences, which provide theoretical and empiri-
cally based discussions of recent trends in world trade as well as institu-
tional and regional perspectives. In addition to the authors of the various
chapters, we are grateful to the paper discussants Chad Brown, Anu
x Acknowledgments
Bradford, Lucian Cernat, Alan Deardorff, Caroline Freund, Amit Khan-
delwal, Michael Levi, Matthias Matthijs, and Heiwai Tang and to par-
ticipants in panel discussions, Swedish Trade Minister Ewa Bjorling,
Koichi Hamada, Merit Janow, Anne Krueger, Hugh Patrick, Indian
Ambassador Manjeev Puri, James Riedel, and Jan Svejnar for their many
insightful contributions.
We also recognize, with gratitude, the co-sponsorship of this event by
Dean Merit Janow at Columbia SIPA and by Dean Vali Nasr at the School
of Advanced International Studies (SAIS) at Johns Hopkins University
and by Professor Jan Svejnar at the Center on Global Economic Gover-
nance at Columbia SIPA. We are grateful as well to May Yang and
Michael Falco at Columbia and to Kelley Kornell at Johns Hopkins, who
worked tirelessly to ensure the success of the two conferences and to
Jane MacDonald and Kathleen Caruso at the MIT Press, whose editorial
support at the MIT Press has been crucial in developing this volume and
expediting it through the publication process.
