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World Trade Politics: Power, Principles, and Leadership

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World Trade Politics: Power, Principles, and Leadership World Trade Politics World Trade Politics is the most detailed overview available of the development of the global trading system since World War II. An ideal text for advanced undergraduates and graduates in courses on trade politics, international political economy, international organizations, US or EU foreign policy and global governance, the book: • explains the prominent leadership role of the United States and European Union negotiators in shaping global economic policy; • explores the challenges before developing state officials in trying to achieve fuller participation and benefits from international trade; • draws on extensive interviews with leading politicians and negotiators to give the inside track on why international bargaining succeeds or fails; • analyzes the international trade regime within a wider discussion of why international institutions succeed and fail; • develops and tests theory of international political leadership that can be applied more generally in international relations research. By tracing the evolution of the international trade regime through an extensive wealth of primary sources and theoretical discourses on international relations and foreign policy, David A. Deese makes an important contribution to our empirical understanding of the evolution of the multilateral trading system. David A. Deese of the Department of Political Science at Boston College is editor of The New Politics of American Foreign Policy and the book series The Library of Essays in International Relations. His research focuses on international organizations, political economy, and foreign policy. World Trade Politics Power, principles, and leadership David A. Deese First published 2008 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Simultaneously published in the USA and Canada by Routledge 270 Madison Avenue, New York, NY 10016 This edition published in the Taylor & Francis e-Library, 2007. “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” Routledge is an imprint of the Taylor & Francis Group, an informa business © 2008 David A. Deese All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data A catalog record for this book has been requested ISBN 0-203-94603-0 Master e-book ISBN ISBN 10: 0–415–77404–7 (hbk) ISBN 10: 0–415–77405–5 (pbk) ISBN 10: 0–203–94603–0 (ebk) ISBN 13: 978–0–415–77404–8 (hbk) ISBN 13: 978–0–415–77405–5 (pbk) ISBN 13: 978–0–203–94603–9 (ebk) To Pattie Contents Preface ix List of abbreviations xiii PART I Coverage, concepts, and theories 1 1 Why study international political leadership and the global trade regime? 3 2 Political leadership in international institutionalized bargaining 13 PART II The practice of political leadership in international trade negotiations 39 3 The founding: World War II to the turbulent 1970s 41 4 The General Agreement on Tariffs and Trade, 1975–1995: from endangered species to unprecedented authority 76 5 Foundations for the future: can the WTO become relevant to development and its least developed members? 126 PART III Conclusion 157 6 Why international institutions fail and succeed 159 viii Contents Notes 184 Bibliography 207 Index 218 Preface The modest claim of this book is to contribute an unusually comprehensive narrative of the international trade regime, in terms of its long evolution over time, which is framed by a theoretically informed set of arguments. If it is “original” in any sense it would be first in the integration of: a) many high quality existing cases and empirical studies from different time periods; b) interviews with many senior officials and negotiators; and c) the politics of foreign policy with trade politics at both domestic and international levels. Second, the book aims to also modestly advance the development and testing of international political leadership theory, in part to stimulate its application to the analysis of other international regimes. Future scholarship will hopefully also more fully develop and specify leadership theory in international contexts It is essential to recognize the critical contribution of many leaders in trade policy, past and present, who were gracious in their willingness to grant the author one or more research interviews. This includes each of the former US cabinet heads for international trade (US Trade Representatives, or USTRs) from Robert Strauss (for Jimmy Carter), Senator William Brock and Clayton Yeuter (Ronald Reagan), Carla Hills (George H. Bush), and Mickey Kantor and Charlene Barchefsky (William Clinton), as well as Gene Sperling, former Head of the National Economic Council, Dan Glickman, former Secretary of Agriculture, Commissioners Jennifer Hillman and Marcia Miller (International Trade Commission), and Senator Robert Packwood. In addition, Peter Allgeier, Deputy USTR to Robert Zoellick (USTR for George W. Bush) for international negotiations and the WTO, Dorothy Dwoskin, David Walters, Bruce Hirsh, Christina Sevilla, Steve Jacobs, and Thelma Askey were also generous with their insights and explanations of key decisions, meetings, and negotiations. Similarly, I truly appreciate the opportunity to interview in detail former senior US officials Warren Lavorel, Ambassador John Veroneau, Jeff Lang, Alan Wolff, Clyde Prestowitz, Gary Horlick, Brad Figel, Claude Barfield, and Edward Gresser At the World Trade Organization in Geneva (WTO) invaluable interviews were provided by senior officials Stuart Harbinson, Rufus Yerxa, Patrick Low, x Preface Keith Rockwell, Alain Frank, Roderick Abbott, Valerie Hughes, Evan Rogerson, Nacer Benjelloun-Touimi, Clem Boonekamp, Jean-Maurice Leger, Carmen Pont-Vieira, Carmen Luz-Guarda, Hiromi Yano, Gretchen Stanton, and Edwini Kessie. My meetings with former WTO and senior national trade negotiators Julio Lacarte, David Hartridge, Andy Stoler, and Ake Linden were crucial to this project. I am also grateful to Julio Lacarte for his visit to Boston College, and to Enrique Iglesias, President of the Inter American Development Bank, who took the time to meet with me in Washington, D.C. in order to discuss the Uruguay Round negotiations. I had the important opportunity to interview senior government trade officials from countries worldwide in Geneva; Cancun, Mexico; or their capital cities. These include Ambassadors Alejandro Jara (currently a WTO Deputy Director General) and Eduardo Perez Motta, Bruce Gosper, Abdel-Haimd Mamdouh (currently a senior WTO official), Peter Thompson, David Shark, Jesus Zorilla Torra, Haran Virupakshan, Didier Chambovey, Detlev Brauns, Wolfgang Hantke, Nelson Drangu, Maigari Buba, Cristian Espinosa, and Simon Farbenbloom. Former senior officials Paulo Batto, John Weekes, Paul Tran, Anthony Hill, Frieder Roessler (at the Advisory Centre for WTO Law), and Shishir Priyadarshi (at the South Centre) were most gracious in providing vital insights and corrections. I could not have conducted several research visits to Geneva from 2002–2005 without the vital support and assistance of Janet Spettel, Jany Barthel-Rosa and the library staff at the WTO in Geneva, as well as the special consideration of Patrick Low, Keith Rockwell, and Bruce Wilson. Former GATT-WTO official Richard Blackhurst also offered important suggestions and ideas. In terms of the extensive existing scholarship on the politics of trade, foreign policy and international institutions completed over past decades, this author is deeply indebted to key theorists, authors of narratives and case studies, government officials, and private individuals from numerous organizations and countries. This book’s arguments are built directly from the work of James McGregor Burns, Erwin Hargrove, Jean Blondel, and Jameson Doig on political leadership, and of Oran Young, Duncan Snidal, David Lake, and Robert Keohane, on international political leadership. The book formulates propositions concerning trade politics and foreign policy based on scholarship by Judith Goldstein, Mac Deslter, Susan Aaronson, Helen Milner, Lisa Martin, Steve Dryden and Christina Davis, among others. The main argument about international political leadership also draws heavily on the bargaining and negotiation literature of scholars such as Mark Lax, James Sebenius, John Odell, Daniel Druckman, and James Fearon, and the insights about international trade policy and law of Gilbert Winham, Patrick Low, John Jackson, Frank Garcia, Alan Oxley, Ernest Preeg, Rorden Wilkinson, and Richard Steinberg. In addition, it relies on careful empirical studies of the GATT-WTO and international trade regime in key periods of time by scholars such as John Preface xi Croome, Hugo Paeman, Jarrod Wiener and many others. The online information resources of the International Centre for Trade and Sustainable Development (ICTSD) are extremely useful. Finally, this project would not be possible without the research on international organizations and multilateralism of scholars such as Miles Kahler, Kenneth Abbott, John Ikenberry, Joseph Nye, John Ruggie, Andrew Moravcsik, and Martha Finnemore. I recognize with
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