Top

Published in:

2018 | OriginalPaper | Chapter

1. The Development of the US and the EU Preferential Trade Agreement Networks: A Tale of Power and Prestige

Author : Panayotis M. Protopsaltis

Published in: Netherlands Yearbook of International Law 2017

Publisher: T.M.C. Asser Press

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

Within the global economy, the European Union (EU) and the United States (US) are engaged in a form of structural competition in which each uses bilateral, regional and multilateral agreements to protect and advance its own interests. In international trade, the EU and the US have followed a similar pattern involving the selection of the most favourable regulatory venue for the achievement of greater liberalisation. Using the stick of exclusion from and the carrot of inclusion in the preferential access to their respective markets, the two commercial superpowers established their networks of asymmetric preferential trade agreements with selected, economically weaker, politically like-minded countries or groups of countries. The extension of their networks may allow them in the future to establish plurilateral rules of trade involving them and their partners while their alliance would have allowed them to increase their leverage in the future international trade negotiations or even create an EU/US-led trade organisation and marginalize the World Trade Organisation (WTO). Although now a rather distant prospect, such an alliance may not have been that desirable for it may have altered the equilibrium of power between the strongest players of the international trade inducing unsympathetic countries to institutionalise their own alliances, leading to the fragmentation of international trade and jeopardising the existence of the WTO.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

next chapter From the Tripartite to the Continental Free Trade Areas: Designs, Outcomes and Implications for African Trade and Integration

Nye and Welsh 2011, at 257–259.

Paul 2004, at 5.

Walt 1987, at 17–21.

For an analysis, see Brawley 2004, at 81.

Ibid., at 76.

On the struggle between alliances and counter alliances, see Morgenthau 2005, at 200–204.

Power refers to the economic, military and related capabilities of the State whereas prestige refers primarily to the perceptions of other States with respect to a State’s capacities and its ability and willingness to exercise power (Gilpin 1983, at 31).

Some claim that structural power, namely, the possession or control over material resources, and thereby control over knowledge and ideas influences the course of institutional bargaining, namely, the efforts of autonomous actors to reach an agreement on the terms of constitutional contracts or interlocking rights and rules that are expected to govern their subsequent interactions (Young 1991, at 282, 288). However, while some see an absolute positive correlation between structural power and institutional bargaining, on the assumption that the most powerful participants shape the outcome of the negotiation terms, others focus instead on the interplay between the possession of structural power and the achievement of bargaining leverage to conclude that the possession of structural power does not automatically translate into bargaining leverage (Young 1994, at 117–141). Others, finally, claim that the bargaining power among states and the outcomes of negotiations are defined principally by the relative prestige of the parties involved (Gilpin 1983, at 31).

Gilpin 1983, at 35.

Krasner 1991, at 340.

Gruber 2000, at 10.

Keohane and Nye 2001, at 26–27.

Nye and Welch 2011, at 258.

Sbragia 2010, at 368 (footnotes omitted).

As Weintraub explains, traditionally, US trade policy was to rely almost exclusively on the multilateral negotiations in the General Agreement on Tariffs and Trade (GATT) and avoid bilateral FTAs, ‘except with state trading countries whose import tariffs had little consequence on the direction of trade’. Nevertheless, in 1987, the US concluded the Canada-US FTA (CUSFTA), which led in turn to the adoption of NAFTA, and then to the Free Trade Areas of the Americas initiative (Weintraub 2003, at 8). Similarly, according to Gantz, although for the most part of the post-World War II period the US has exercised leadership in global efforts to achieve freer trade, focusing almost exclusively on the GATT, ‘the year 1985 marked a pivotal period in US foreign trade policy. The United States began to depart from its long-standing opposition to regional trade agreements’ (Gantz 2008, at 116).

Gantz 2016, at 302–303.

The strategy of managed globalisation involved the framing of commercial liberalisation with restrictive rules and international institutions, the promotion of multilateralism, the inclusion of the periphery in the international commercial negotiations, the export of European practices and values and the redistribution of the costs and benefits of the globalisation both in and abroad (Meunier 2007, at 514).

Elsig 2007, at 927.

Sbragia 2010, at 369.

Ibid., at 368–370, passim.

García 2013, at 524.

Sapir 2007, at 13.

The term is used here to include the EU EPAs and Association Agreements as well as the US FTAs.

For an analysis of the reasons of collapse of the Doha Round, see Schott 2004; Gantz 2013, at 36–46.

According to Sherov-Ignatiev and Sutyrin, ‘[a]symmetry refers to the dominant role of one member state and reveals itself in the agreements' elaboration process, mutual concessions, distribution of costs and benefits between the participants’ (Sherov-Ignatiev and Sutyrin 2011).

Australia (2005), Bahrain (2006), Canada (1987), Chile (2004), Colombia (2011), Israel (1985), Jordan (2001), South Korea (2011), Morocco (2006), Oman (2006), Panama (2011), Peru (2007) and Singapore (2004).

Canada and Mexico (1994).

Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic (2006).

Australia, Brunei Darussalam, Chile, Japan, Malaysia, New Zealand, Peru, Singapore and Vietnam (2015).

Indeed, according to Trump’s Trade Policy Agenda, ‘[t]he overarching purpose of our trade policy […] will be to expand trade in a way that is freer and fairer for all Americans. Every action we take with respect to trade will be designed to increase our economic growth, promote job creation in the United States, promote reciprocity with our trading partners, strengthen our manufacturing base and our ability to defend ourselves, and expand our agricultural and services industry exports. As a general matter, we believe that these goals can be best accomplished by focusing on bilateral negotiations rather than multilateral negotiations—and by renegotiating and revising trade agreements when our goals are not being met. Finally, we reject the notion that the United States should, for putative geopolitical advantage, turn a blind eye to unfair trade practices that disadvantage American workers, farmers, ranchers, and businesses in global markets’ (Office of the United States Trade Representative (2017) 2017 Trade Policy Agenda and 2016 Annual Report of the President of the United States on the Trade Agreements Program, March 2017, https://ustr.gov/sites/default/files/files/reports/2017/AnnualReport/AnnualReport2017.pdf, accessed 15 June 2017, at 1).

The Yaoundé Conventions (First Yaoundé Convention (1964) and Second Yaoundé Convention (1971)) were replaced by the Lomé Conventions (Lomé I (1976), Lomé II (1981), Lomé III (1985), Lomé IV (1990) and Lomé IV bis (1995)), replaced in turn by the Cotonou Agreement (2000).

See European Commission, Directorate General for Trade (2004) The European Union’s Generalised System of Preferences GSP, February 2004, http://trade.ec.europa.eu/doclib/docs/2004/march/tradoc_116448.pdf, accessed 15 June 2017.

See Patterson 2001; McCall Smith 2006, at 257–288.

On the Lomé waiver, see WTO, Fourth ACP-EEC Convention of Lomé, Decision of the Contracting Parties of 9 December 1994, L/7604, 19 December 1994; WTO, EC – The Fourth ACP-EC Convention of Lomé, Extension of Waiver, Decision of 14 October 1996, WT/L/186, 18 October 1996.

On the Cotonou waiver, see WTO, European Communities - The ACP-EC Partnership Agreement, Decision of 14 November 2001, WT/MIN(01)/15, 14 November 2001.

On the EPAs, see European Commission (2017) Economic Partnerships, updated 08 February 2017, http://ec.europa.eu/trade/policy/countries-and-regions/development/economic-partnerships/index_en.htm, accessed 15 June 2017; cf. Ziai 2016, at 116.

Papua New Guinea and Fiji (2007); Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, Saint Christopher and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname and Trinidad and Tobago (CARIFORUM States) (2008); Cameroon (2009); Madagascar, Mauritius, Seychelles and Zimbabwe (2009); Burundi, Kenya, Rwanda, Tanzania and Uganda (Eastern African Community) (2014); Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland (Southern African Development Community) (2016); Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo (Economic Community of West African States and West African Economic and Monetary Union) (2014).

Colombia and Peru (2012) as well as Ecuador (2016).

Singapore (2014) and Vietnam (2015).

EU-Iceland, Liechtenstein and Norway. See 1994 Agreement on the European Economic Area, OJ L 1, 3/1/1994, updated 1 August 2016 (‘EEA Agreement’).

On trade relations between the EU and Switzerland, see European Commission (2017) Countries and Regions: Switzerland, updated 22 February 2017, http://ec.europa.eu/trade/policy/countries-and-regions/countries/switzerland/index_en.htm, accessed 15 June 2017.

2014 Comprehensive Economic and Trade Agreement between Canada, of the one part, and the European Union and its Member States, of the other part, OJ L 11, 14/1/2017 (‘CETA’).

The Central America Association Agreements include Honduras, Nicaragua, Panama, Costa Rica, El Salvador and Guatemala (2013).

1997 Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, of the one part, and the United Mexican States, of the other part, OJ L 276, 28/10/2000 (‘EC-Mexico Global Cooperation Agreement’).

2002 Agreement Establishing an Association between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part, OJ L 352, 30/12/2002 (‘EC.-Chile Association Agreement’).

The Euro-Mediterranean Association Agreements include Palestine (1997), Tunisia (1998), Morocco (2000), Israel (2000), Jordan (2002), Egypt (2004), Lebanon (2003) and Algeria (2005).

FYROM (2001), Bosnia-Herzegovina (2008), Montenegro (2008), Albania (2009) and Serbia (2009).

Moldova (2014), Georgia (2014) and Ukraine (2016).

European Commission, Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the Customs Union, 96/142/EC, 22 December 1995.

Kolsky Lewis 2011, at 21.

Australia, Canada, Chile, Israel, Mexico and South Korea.

Bahrain, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Morocco, Nicaragua, Oman, Panama, Peru and Singapore.

Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama and Peru.

Australia, Singapore and South Korea.

Bahrain, Israel, Jordan, Morocco and Oman.

See US Department of Commerce, Census Bureau, Economic Indicators Division (2017) Top U.S. Trade Partners Ranked by 2016 U.S. Total Export Value for Goods, http://www.trade.gov/mas/ian/build/groups/public/@tg_ian/documents/webcontent/tg_ian_003364.pdf, accessed 15 June 2017.

Koh 2004, at 8.

Gordon 2003.

Koh 2004, at 8.

Lusztig 1996, at 98.

Weintraub 2003, at 9.

Koh 2004, at 9.

Gordon 2003.

Bhagwati 2008, at 37.

Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Australia, China, India, Japan, South Korea and New Zealand.

Hamanaka 2014a, at 16.

Gantz 2013, at 270.

See Office of the United States Trade Representative (2017) 2017 Trade Policy Agenda and 2016 Annual Report of the President of the United States on the Trade Agreements Program, at 1.

Galal and Lawrence 2004, at 299.

Ibid., at 326.

Koh 2004, at 8.

Rosen 2004, at 51.

Griffith et al. 2017, at 4.

FC Bergsten (2002) A Competitive Approach to Free Trade, Financial Times, 4 December 2002, https://piie.com/commentary/op-eds/competitive-approach-free-trade, accessed 15 June 2017.

Thus, for example, defending the TPP initiative in 2015, President Obama affirmed that ‘[w]e have to make sure America writes the rules of the global economy. And we should do it today, while our economy is in the position of global strength. Because if we don’t write the rules for trade around the world -guess what- China will. And they’ll write those rules in a way that gives Chinese workers and Chinese businesses the upper hand, and locks American-made goods out’ (US President B. Obama, 8 May 2015, Beaverton, Oregon, https://obamawhitehouse.archives.gov/the-press-office/2015/05/08/remarks-president-trade, accessed 15 June 2017). Interestingly enough, Davis and Hilsenrath attributed the success of Donald Trump to the negative effects of the competition with China on US manufacturing counties’ households (B. Davis, J. Hilsenrath (2016) How the China Shock, Deep and Swift, Spurred the Rise of Trump, Wall Street Journal, 11 August 2016, http://www.wsj.com/articles/how-the-china-shock-deep-and-swift-spurred-the-rise-of-trump-1470929543, accessed 15 June 2017).

Protectionist pressures are nurtured by the numerous tensions in US-China trade relationships stemming from China’s incomplete transition to a free market economy and the ever-increasing size of the American trade deficit with China (Morrison 2015, at 2–3).

Gordon 2003.

Gruber 2001, at 703–741.

Gantz 2008, at 145.

Weintraub 2003, at 10.

Kolsky Lewis 2011, at 22.

Burrell and Weatherall 2008, at 259, 270–278.

Switzerland, Canada, Mexico and Turkey.

See European Commission, Directorate General for Trade (2016) Client and Supplier Countries of the EU28 in Merchandise Trade (2015, excluding intra-EU trade), 4 November 2016, http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_122530.pdf, accessed 15 June 2017.

Meunier and Nicolaϊdis 2006, at 911–912.

See European Commission, Directorate for Trade (2017) European Union, Trade in goods with ACP Total (African Caribbean and Pacific Countries), 3 May 2017, http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113340.pdf, accessed 15 June 2017.

On the Gramscian concept of hegemony, see Williams 1960, at 587.

Hurt 2003, at 174.

European Commission, Directorate-General VIII Development, Reflection Group Partnership 2000, Green Paper on Relations between the European Union and the ACP Countries on the Eve of the 21st Century: Challenges and Options for a new Partnership, COM(96)570 final, 20 November 1996.

Faber and Orbie 2009, at 45.

Börzel and Risse 2009, at 5.

Ibid., at 16.

Cotonou Agreement, Article 25(2).

Valladão 2015, at 121.

The European Commission identified the key economic criteria for new FTA partners: ‘market potential (economic size and growth) and the level of protection against EU export interests (tariffs and non-tariff barriers)’ (European Commission, External Trade, Global Europe Competing in the World: A Contribution to EU’s Growth and Jobs Strategy, http://trade.ec.europa.eu/doclib/docs/2006/october/tradoc_130376.pdf, accessed 15 June 2017, at 11).

Barahona de Britto 2000, at 3; García 2013, at 526.

Barahona de Britto 2000, at 3. Similarly, as a French politician put it in the late 1990s, ‘[l]e précédent de l’intégration du Mexique à l’ALENA, avec ses conséquences très négatives sur le niveau des échanges entre l'Union européenne et le Mexique, doit nous encourager à aller de l’avant dans la relation avec le MERCOSUR et à veiller au parallélisme avec l’ALCA’ (Assemblée Nationale, Rapport d'information déposé par la Délégation de l'Assemblée nationale pour l'Union européenne, sur les relations entre l'Union européenne et le MERCOSUR et présenté par M. Alain Barrau, Député, No. 1721, 17 juin 1999, http://www.assemblee-nationale.fr/europe/rap-info/i1721.pdf, accessed 15 June 2017, at 7).

Reiter 2003, at 65, 67–68.

100

Barahona de Britto 2000, at 3. See also Council of the European Union (1994) Europe and Latin America: A Partnership for Action: Basic Document on the Relations of the European Union with Latin America and the Caribbean, European Commission, 31 October 1994, http://aei.pitt.edu/41670/1/A5819.pdf, accessed 15 June 2017, at 13–14.

101

García 2013, at 531.

102

Faber and Orbie 2009, at 41.

103

Kolsky Lewis 2011, at 31.

104

Cotonou Agreement, Article 36(1).

105

Faber 2005, at 86.

106

Kolsky Lewis 2011, at 32.

107

European Parliament, Committee on International Trade, Working Document on Proposal for a Regulation of the European Parliament and of the Council Applying a Scheme of Generalised Tariff Preferences, C Fjellner (Rapporteur), DT\876720EN.doc, 28 September 2011, at 3.

108

Schade 2016, at 73. On 18 December 2014, just before its graduation, Ecuador was given a two-year standstill on customs duties, amongst others, in return for the signature and ratification of the Protocol of Accession the Trade Agreement between the European Union and its Member States and Colombia and Peru (Regulation (EU) No 1384/2014 of the European Parliament and of the Council of 18 December 2014 on the tariff treatment for goods originating in Ecuador, OJEU L 372/5, Article 3(e)). Ecuador finally signed the Protocol of Accession on 11 November 2016 and joined the EU - Colombia/Peru Free Trade Agreement (See European Commission, Ecuador joins EU-Colombia/Peru trade agreement, Press Release, 11 November 2016, http://europa.eu/rapid/press-release_IP-16-3615_en.htm, accessed 15 June 2017).

109

Discussing the effects of customs unions, Viner distinguishes between ‘commodities […] which one of the members of the customs union will now newly import from the other but which it formerly did not import at all because the price of the protected domestic product was lower than the price of any foreign source plus the duty’ and ‘commodities which one of the members of the customs union will now newly import from the other whereas before the customs union it imported from a third country because it was the cheapest possible source of supply even after payment of duty’. He further explains that ‘[t]he primary purpose of a customs union, and its major consequence for good or bad, is to shift resources of supply, and the shift can be either to lower- or to higher-cost resources, depending on circumstances’ (Viner 2014, at 53–54). Bhagwati explains that the traditional objection to PTAs was simply that ‘they could divert trade from cost-efficient non-member countries to the relatively inefficient member countries’, since non-member countries continue to pay pre-PTA tariffs whereas higher cost member countries benefit from lower tariffs (Bhagwati 2008, at 49).

110

Viner 2014, at 175.

111

Sherov-Ignatiev and Sutyrin 2011.

112

Ibid.

113

Gantz 2008, at 122.

114

In that sense, García 2011, at 502.

115

Horn et al. 2011, at 151–152.

116

Ibid., at 166.

117

Ibid., at 153, 160.

118

The trade negotiating objectives include overall trade negotiating objectives and principal trade negotiating objectives. The latter refer to trade barriers and distortions as well as to trade in services (19 US Code, Chapter 24, para 3802 (Trade negotiating objectives)).

119

Weintraub 2003, at 9.

120

Articles XXIV of GATT 1994 and V of the GATS authorise regional trade agreements, namely free trade areas and customs unions provided that duties and other restrictive regulations of commerce are eliminated on substantially all the trade between the constituent territories in products originating in such territories. In addition, the WTO authorises preferential trade arrangements, namely unilateral, non-reciprocal trade preferences in favour of developing countries (See WTO Decision of 28 November 1979, L/4903. On the EU interpretation of the terms ‘substantially all trade’, see Hamanaka 2014b, at 59).

121

Horn et al. 2011, at 152–153, 161–163, passim.

122

Fontanelli and Bianco 2014, at 220.

123

Horn et al. 2011, at 152.

124

Ibid., at 169.

125

Sapir 2007, at 12.

126

Kampf 2007, at 106; cf. Weintraub 2003, at 10.

127

Roffe and Vivas-Eugui explains that ‘the US recently relaxed several patent-related IP rules in revised versions of its FTAs with Colombia, Panama and Peru’ (Roffe and Vivas-Eugui 2007, at 15).

128

The EU-Chile and the EU-South Africa FTAs, for example, contain provisions on the protection of geographical indications for wines and spirits (Kampf 2007, at 114–115).

129

Indeed, according to Sell, ‘[d]espite the fact that a TRIPS advocate triumphantly exclaimed, “we got 95% of what we wanted,” that 5% has always mattered, and 95% was never enough’ (Sell 2013, at 448).

130

Mercurio 2006, at 219.

131

Ibid., at 221.

132

Weintraub 2003, at 10.

133

See 19 US Code, Chapter 24, para 3802 (Trade negotiating objectives).

134

The North American Agreement on Labor Cooperation and the North American Agreement on Environmental Cooperation.

135

As Gantz rightly concludes, ‘virtually all of the U.S. FTAs, beginning with NAFTA, call for providing citizens of the Parties with opportunities for access to some kind of mechanism for addressing violations of the labor and environmental (and many other) obligations agreed to by the Parties’ (Gantz 2011, at 304).

136

Kenner 2011, at 180.

137

Erickson and Mitchel 1999, at 85.

138

Cai 2016, at 511.

139

For an overview of the problem in question, see Fung 2014.

140

CETA, Article 21.1.

141

As Gantz explains, even though the US remains one of the most open markets in the world, ‘long-standing U.S. policy continues to provide extensive protection to agriculture commodities, steel, textiles and clothing, among others’ (Gantz 2008, at 118).

142

By way of illustration, the Association Agreements adopted in the context of the Euro-Mediterranean partnership exclude agriculture (Tovias 2010, at 174). Similarly, the Cotonou agreement excludes products competitive with those falling under the Community’s Common Agricultural Policy while the EU may take appropriate measures when imported products cause or threaten to cause serious injury to its domestic producers of like or directly competitive products or serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region (Bartels 2007, at 734).

143

Tully claims that by concluding bilateral and regional agreements, the United States ‘is gaining greater influence over the domestic health care and drug coverage programs of its trading partners’ (Tully 2016, at 408). See also Lopert and Gleeson 2013, at 199; Baird 2013, at 125. I am indebted to Dr Mark Eccleston-Turner for pointing out this problem of the US FTAs to me.

144

Erickson and Mitchel 1999, at 42.

145

See Office of the United States Trade Representative (2017) 2017 Trade Policy Agenda and 2016 Annual Report of the President of the United States on the Trade Agreements Program, at 1.

146

Weintraub 2003, at 8.

147

The EU policy on selection of the regulatory venue for the achievement of greater liberalisation was repeatedly mentioned by EU officials and academics during the 16th Annual Conference on WTO Law organised by the British Institute of International and Comparative Law in Geneva (June 10–11, 2016).

148

On the vertical forum shifting, see Sell 2013, at 451.

149

Baldwin 2006, at 939; cf. Sapir 2007, at 7.

150

Mattoo and Wunsch 2004, at 20.

151

Baldwin 2006, at 139.

152

Sapir 2007, at 7.

153

Kolsky Lewis 2011, at 19.

154

Quiliconi and Wise 2009, at 104.

155

Ruiz-Fabri 2012, at 357.

156

Bhagwati 2008, at 61–70, passim.

157

Ruiz-Fabri 2012, at 357.

158

Horn et al. 2011, at 151.

159

Kolsky Lewis 2011, at 21.

Ibid., at 21–22.

Ibid., at 22.

Ibid., at 24.

Ibid., at 30.

Ibid.

Sapir 2007, at 12.

Limão 2011, at 178.

From the legal point of view, BITs cannot give rise to a new custom because they lack the two elements of customary international law: State practice and opinio juris. And even if the repetition of BITs’ provisions was evidence of practice, these provisions cannot give birth to a new custom because their adoption is not considered obligatory by the States. And even if we admitted the existence of an opinio juris and the establishment of an opinio juris sive necessitatis, the birth of a new custom is obstructed by the divergence of BITs’ main provisions which does not allow us to discern the new custom’s content with certainty (Juillard 1994, at 129; Sornarajah 1994, at 227–228, 276; Guzman 1997, at 686).

168

Kline and Ludema 1997, at 8.

169

Sapir observed in 2007 that ‘the European Union and the United States are clearly the two “regulators of the world”. Although together they only account for about 40 percent of world GDP (at PPP) and world trade, they probably produce around 80 percent of the international norms and standards that regulate global markets, including the dollar and the euro’ (Sapir 2007, at 12).

170

Schill and Bray 2016, at 412.

171

Monardes 2016, at 392–394.

172

Voon and Sheargold 2016, at 370.

173

Sapir 2007, at 13.

174

Sell 2013, at 452.

175

Griffith et al. 2017, at 4–5, 9–10, passim.

176

Ibid., at 13.

177

See Office of the United States Trade Representative (2017) 2017 Trade Policy Agenda and 2016 Annual Report of the President of the United States on the Trade Agreements Program, at 1.

178

Cf. Dolle and Simões 2016, at 620–621.

179

Griffith et al. 2017, at 17.

180

Mansfield 1998, at 527.

181

See New Development Bank (2014) Agreement on the New Development Bank, 15 July 2014, http://ndbbrics.org/agreement.html, accessed 15 June 2017.

182

Griffith et al. 2017, at 11.

Baird S (2013) Magic and Hope: Relaxing TRIPS-Plus Provisions to Promote Access to Affordable Pharmaceuticals. Boston College Journal of Law & Social Justice 33:107–145

Baldwin M (2006) EU Trade Politics - Heaven or Hell? Journal of European Public Policy 13:926–942

Barahona de Britto A (2000) Introduction. Journal of Interamerican Studies and World Affairs 42:1–7

Bartels L (2007) The Trade and Development Policy of the European Union. European Journal of International Law 18:715–756

Bhagwati JN (2008) Termites in the Trading System: How Preferential Agreements Undermine Free Trade. Oxford University Press, Oxford

Börzel TA, Risse T (2009) Diffusing (Inter-) Regionalism: The EU as a Model of Regional Integration. KFG Working Paper No. 7. http://userpage.fu-berlin.de/kfgeu/kfgwp/wpseries/WorkingPaperKFG_7.pdf. Accessed 15 June 2017

Brawley MR (2004) The Political Economy of Balance of Power Theory. In: Paul TV, Wirtz JJ, Fortmann M (eds) Balance of Power: Theory and Practice in the 21^st Century. Stanford University Press, Stanford, 76–99

Burrell R, Weatherall, K (2008) Exporting Controversy? Reactions to the Copyright Provisions of the U.S. - Australia Free Trade Agreement: Lessons for U.S. Trade Policy. University of Illinois Journal of Law, Technology and Policy 2008:259–319

Cai PXF (2016) Regulatory Coherence and Standardization Mechanisms in the Trans-Pacific Partnership. British Journal of American Legal Studies 6:505–538

Dolle T, Simões B (2016). Mixed Feelings about “Mixed Agreements” and CETA’s Provisional Application. European Journal of Risk Regulation 7:617–622

Elsig M (2007) The EU’s Choice of Regulatory Venues for Trade Negotiations: A Tale of Agency Power? Journal of Common Market Studies 45:927–948

Erickson CL, Mitchel DJB (1999) The American Experience with Labor Standards and Trade Agreements. Journal of Small and Emerging Business Law 3:41–92

Faber G (2005) Economic Partnership Agreements and Regional Integration among ACP Countries. In: Babarinde O, Faber G (eds) The European Union and Developing Countries: The Cotonou Agreement. Martinus Nijhoff Publishers, Leiden, 85–109

Faber G, Orbie J (2009) The EU’s insistence on reciprocal trade with the ACP Group Economic interests in the driving seat? In: Faber G, Orbie J (eds) Beyond Market Access for Economic Development: EU-Africa Relations in Transition. Routledge, London, 38–64

Fontanelli F, Bianco G (2014) Converging towards NAFTA: An Analysis of FTA Investment Chapters in the European Union and in the United States. Stanford Journal of International Law 50:211–245

Fung ST (2014) Negotiating Regulatory Coherence: The Costs and Consequences of Disparate Regulatory Principles in the Transatlantic Trade and Investment Partnership Agreement Between the United States and the European Union. Cornell International Law Journal 47:445–471

Galal A, Lawrence RZ (2004) Egypt, Morocco, and the United States. In: Schott JJ (ed) Free Trade Agreements: US Strategies and Priorities. Institute for International Economics, Washington D.C., 299–330

Gantz DA (2008) The ‘Bipartisan Trade Deal,’ Trade Promotion Authority and the Future of U.S. Free Trade Agreements. Saint Louis University Law Review 28:115–153

Gantz DA (2011) Labor Rights and Environmental Protection under NAFTA and Other U.S. Free Trade Agreements. University of Miami Inter-American Law Review 42:297–366

Gantz DA (2013) Liberalizing International Trade after Doha: Multilateral, Plurilateral, Regional and Unilateral Initiatives. Cambridge University Press, New York

Gantz DA (2016) Introduction to U.S. Free Trade Agreements. British Journal of American Legal Studies 6:299–313

García M (2011) Incidents along the path: Understanding the rationale behind the EU-Chile Association Agreement. Journal of Common Market Studies 49:501–524

García M (2013) From Idealism to Realism? EU Preferential Trade Agreement Policy. Journal of Contemporary European Research 9:521–541

Gilpin G (1983) War and Change in World Politics. Cambridge University Press, Cambridge

Gordon BK (2003) By Invitation Only: Cozy Free Trade Deals Subvert Global Integration. YaleGlobal Online. http://yaleglobal.yale.edu/content/invitation-only-cozy-free-trade-deals-subvert-global-integration. Accessed 15 June 2017

Griffith MK, Steinberg RH, Zysman J (2017) From Great Power Politics to a Strategic Vacuum: Origins and Consequences of the TPP and TTIP. Business and Politics 1–20. https://doi.org/10.1017/bap.2017.16 Accessed 31 July 2017

Gruber L (2000) Ruling the World: Power Politics and the Rise of Supranational Institutions. Princeton University Press. Princeton

Gruber L (2001) Power Politics and the Free Trade Bandwagon. Comparative Political Studies 34:703–741

Guzman AT (1997) Why LDCs Sign Treaties That Hurt Them: Explaining the Popularity of Bilateral Investment Treaties. Virginia Journal of International Law 38:639–688

Hamanaka S (2014a) Trans-Pacific Partnership versus Regional Comprehensive Economic Partnership: Control of Membership and Agenda Setting. ADB Working Paper Series on Regional Economic Integration, No. 146. https://www.adb.org/sites/default/files/publication/152753/reiwp-146.pdf. Accessed 15 June 2017

Hamanaka S (2014b) Asian Free Trade Agreements and WTO Compatibility: Goods, Services, Trade Facilitation and Economic Cooperation. World Scientific, Singapore

Horn H, Mavroidis PC, Sapir A (2011) EU and U.S. Preferential Trade Agreements: Deepening or Widening of WTO Commitments. In: Bagwell KW, Mavroidis PC (eds) Preferential Trade Agreements: A Law and Economics Analysis. Cambridge University Press, Cambridge, 150–172

Hurt SR (2003) Co-operation and Coercion? The Cotonou Agreement between the European Union and ACP States and the End of the Lomé Convention. Third World Quarterly 24:161–176

Juillard P (1994) L’évolution des sources du droit des investissements. Collected Courses of The Hague Academy of International Law 250:9–216

Kampf R (2007) TRIPS and FTAs: A World of Preferential or Detrimental Relations? In: Heath C, Kamperman Sanders A (eds) Intellectual Property and Free Trade Agreements. Hart Publishing, Oxford, 87–126

Kenner J (2011) Labor Clauses in EU Preferential Trade Agreements – An Analysis of the Cotonou Partnership Agreement. In: Bagwell KW, Mavroidis PC (eds) Preferential Trade Agreements: A Law and Economics Analysis. Cambridge University Press, Cambridge, 180–209

Keohane RO, Nye, JS (2001) Power and Interdependence, 3^rd edn. Longman, New York

Kline JM, Ludema RD (1997) Building a Multilateral Framework for Investment: Comparing the Development of Trade and Investment Accords. Transnational Corporations 6:1–22

Koh TTB (2004) The USSFTA: A Personal Perspective. In: Koh T, Chang LL (eds) The United States – Singapore Free Trade Agreement: Highlights and Insights. Institute of Policy Studies, Singapore, 3–22

Kolsky Lewis M (2011) The Politics and Indirect Effects of Asymmetrical Bargaining Power in Free Trade Agreements. In: Broude T, Busch ML, Porges A (eds) The Politics of International Economic Law. Cambridge University Press, Cambridge, 19–39

Krasner SK (1991) Global Communications and National Power: Life on the Pareto Frontier. World Politics 43:336–366

Limão N (2011) Comments on ‘Beyond the WTO? Coverage and Legal Inflation in EU and U.S. Preferential Trade Agreements’. In: Bagwell KW, Mavroidis PC (eds) Preferential Trade Agreements: A Law and Economics Analysis. Cambridge University Press, Cambridge, 175–179

Lopert R, Gleeson D (2013) The High Price of ‘Free’ Trade: U.S. Trade Agreements and Access to Medicines. Journal of Law, Medicine & Ethics 41:199–223.

Lusztig M (1996) Risking Free Trade: The Politics of Trade in Britain, Canada, Mexico, and the United States. University of Pittsburgh Press 1996, Pittsburgh

Mansfield ED (1998) The Proliferation of Preferential Trade Arrangements. Journal of Conflict Resolution 42:523–543

Mattoo A, Wunsch S (2004) Pre-empting Protectionism in Services: The WTO and Outsourcing. World Bank Policy Research Working Paper 3237. http://documents.worldbank.org/curated/en/742751468761428347/pdf/WPS3237.pdf. Accessed 15 June 2017

McCall Smith J (2006) Compliance Bargaining in the WTO: Ecuador and the Bananas Dispute. In: Odell JS (ed) Negotiating Trade Developing Countries in the WTO and NAFTA. Cambridge University Press, Cambridge, 257–288.

Mercurio B (2006) TRIPS-Plus Provisions in FTAs: Recent Trends. In: Bartels L, Ortino F (eds) Regional Trade Agreements and the WTO Legal System. Oxford University Press, New York, 215–237

Meunier S (2007) L’Union européenne, la ‘mondialisation maîtrisée’ et l’épreuve du cycle de Doha. Annuaire français de relations internationals 8:513–525

Meunier S, Nicolaϊdis K (2006) The European Union as a conflicted trade power. Journal of European Public Policy 13:906–925

Monardes RV (2016) Challenges for Countries in Trade in Services’ Negotiations with the NAFTA Approach: The Experience of Chile in the Free Trade Agreement with the United States. British Journal of American Legal Studies 6:371–394

Morgenthau HJ (2005) Politics among Nations: The Struggle for Power and Peace, 7^th edn. McGraw-Hill Higher Education, Boston

Morrison WM (2015), China-U.S. Trade Issues. Congressional Research Service Report RL33536. https://fas.org/sgp/crs/row/RL33536.pdf. Accessed 15 June 2017

Nye JS, Welsh DA (2011) Understanding Global Conflict and Cooperation: An Introduction to Theory and History, 8^th edn. Longman, Boston

Patterson E (2001) The US-EU Banana Dispute. ASIL Insights 6. https://www.asil.org/insights/volume/6/issue/4/us-eu-banana-dispute. Accessed 15 June 2017

Paul TV (2004) Introduction: The Enduring Axioms of Balance of Power Theory and Their Contemporary Relevance. In: Paul TV, Wirtz JJ, Fortmann M (eds) Balance of Power: Theory and Practice in the 21^st Century. Stanford University Press, Stanford, 1–25

Quiliconi C, Wise C (2009) The US as a Bilateral Player: The Impetus for Asymmetric Free Trade Agreements. In: Solís M, Stallings B, Katada S (eds), Competitive Regionalism: FTA Diffusion in the Pacific Rim. Palgrave Macmillan, Basingstoke, 97–117

Reiter J (2003) The EU-Mexico Free Trade Agreement: Assessing the EU Approach to Regulatory Issues. In Sampson GP, Woolcock S (eds) Regionalism, Multilateralism and Economic Integration: the Recent Experience. Tokyo, United Nations University Press, 62–99

Roffe P, Vivas-Eugui D (2007) A Shift in Intellectual Property Policy in US FTAs? Bridges 11:15–16

Rosen H (2004) Free Trade Agreements as Foreign Policy Tools: The US-Israel and the US-Jordan FTAs. In: Schott JJ (ed) Free Trade Agreements: US Strategies and Priorities. Institute for International Economics, Washington D.C., 51–77

Ruiz-Fabri H (2012) Regulating Trade, Investment and Money. In: Crawford J, Koskenniemi M (eds) The Cambridge Companion to International Law. Cambridge University Press, Cambridge, 352–372

Sapir A (2007) Europe and the Global Economy. In: Sapir A (ed) Fragmented Power: Europe and the Global Economy. Bruegel, Brussels, 1–20.

Sbragia A (2010) The EU, the US, and Trade Policy: Competitive Interdependence in the Management of Globalization. Journal of European Public Policy 17:368–382

Schade D (2016) Coercion through Graduation: Explaining the EU-Ecuador Free Trade Agreement. Journal für Entwicklungspolitik 32:71–90

Schill SW, Bray HL (2016) The Brave New (American) World of International Investment Law: Substantive Investment Protection Standards in Mega-Regionals. British Journal of American Legal Studies 6:419–448

Schott JJ (2004) Reviving the Doha Round. Peterson Institute for International Economics. http://www.iie.com/publications/papers/paper.cfm?ResearchID=207. Accessed 15 June 2017

Sell SS (2013) TRIPS was Never Enough: Vertical Forum Shifting, FTAS, ACTA and TPP. Journal of Intellectual Property Law 18:447–478

Sherov-Ignatiev VG, Sutyrin SF (2011) Peculiarities and rationale of asymmetric regional trade agreements. Discussion forum: World Trade Report 2011 The WTO and preferential trade agreements: From co-existence to coherence. https://www.wto.org/english/res_e/publications_e/wtr11_forum_e/wtr11_2aug11_a_e.htm. Accessed 15 June 2017

Sornarajah M (1994) The International Law on Foreign Investment. Cambridge University Press, Cambridge

Tovias A (2010) The EU and the Mediterranean Nonmember States. In: Bindi F (ed) The Foreign Policy of the European Union: Assessing Europe’s Role in the World. The Brookings Institution, Washington D.C., 169–182

Tully SR (2016) Free Trade Agreements with the United States: 8 Lessons for Prospective Parties from Australia’s Experience. British Journal of American Legal Studies 6:395–418

Valladão AGA (2015) Europe and Latin America: Differing Routes for Regional Integration. In: Teló M, Fawcett L, Ponjaert F (eds) Interregionalism and the European Union: A Post-Revisionist Approach to Europe’s Place in a Changing World. Ashgate Publishing Limited, Surrey, 109–126

Viner J (2014) The Customs Union Issue. Edited with an Introduction by Oslington P. Oxford University Press, Oxford

Voon T, Sheargold E (2016) The Trans-Pacific Partnership. British Journal of American Legal Studies 6:341–370

Walt SM (1987) The Origins of Alliances. Cornell University Press, Ithaca

Weintraub S (2003) Some Implications of U.S. Trade Agreements with Chile and Singapore. LAEBA, Working Paper No. 14. http://www20.iadb.org/intal/catalogo/PE/2010/06219.pdf. Accessed 15 June 2017

Williams GA (1960) The Concept of ‘Egemonia’ in the Thought of Antonio Gramsci: Some Notes on Interpretation. Journal of the History of Ideas 21:586–599

Young OR (1991) Political Leadership and Regime Formation: On the Development of Institutions in International Society. International Organization 45:281–308

Young OR (1994) International Governance: Protecting the Environment in a Stateless Society. Cornell University Press, Ithaca

Ziai A (2016) Development Discourse and Global History: From Colonialism to the Sustainable Development Goals. Routledge, London

Title: The Development of the US and the EU Preferential Trade Agreement Networks: A Tale of Power and Prestige
Author: Panayotis M. Protopsaltis
Publisher: T.M.C. Asser Press
Book: Netherlands Yearbook of International Law 2017
Print ISBN: 978-94-6265-242-2

Electronic ISBN: 978-94-6265-243-9

Copyright Year: 2018
DOI: https://doi.org/10.1007/978-94-6265-243-9_1

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"