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The Rise of Bilateralism United Nations University Press is the publishing arm of the United Nations University. UNU Press publishes scholarly and policy-oriented books and periodicals on the issues facing the United Nations and its peoples and member states, with particular emphasis upon international, regional and transboundary policies. The United Nations University was established as a subsidiary organ of the United Nations by General Assembly resolution 2951 (XXVII) of 11 December 1972. It functions as an international community of scholars engaged in research, postgraduate training and the dissemination of knowledge to address the pressing global problems of human survival, development and welfare that are the concern of the United Nations and its agencies. Its activities are devoted to advancing knowledge for human security and development and are focused on issues of peace and governance and environment and sustainable development. The Univer- sity operates through a worldwide network of research and training centres and programmes, and its planning and coordinating centre in Tokyo. The rise of bilateralism The United Nations University Programme on Comparative Regional Integration Studies, UNU-CRIS, is a research and training programme of the UNU located in Bruges (Belgium) that focuses on the role of re- gions and regional integration in global governance. The aim of UNU- CRIS is to build policy-relevant knowledge about new forms of gover- nance and cooperation, and to contribute to capacity-building on issues of integration and cooperation, particularly in developing countries. Among the areas studied at UNU-CRIS are the global/regional gover- nance of peace and security, the socio-economic dimensions of regional integration and the development of indicators for monitoring integration processes. www.cris.unu.edu The rise of bilateralism: Comparing American, European and Asian approaches to preferential trade agreements Kenneth Heydon and Stephen Woolcock United Nations a University Press TOKYO u NEW YORK u PARIS 6 United Nations University, 2009 The views expressed in this publication are those of the authors and do not nec- essarily reflect the views of the United Nations University. United Nations University Press United Nations University, 53-70, Jingumae 5-chome, Shibuya-ku, Tokyo 150-8925, Japan Tel: þ81-3-5467-1212 Fax: þ81-3-3406-7345 E-mail: [email protected] general enquiries: [email protected] http://www.unu.edu United Nations University Office at the United Nations, New York 2 United Nations Plaza, Room DC2-2062, New York, NY 10017, USA Tel: þ1-212-963-6387 Fax: þ1-212-371-9454 E-mail: [email protected] United Nations University Press is the publishing division of the United Nations University. Cover design by Joyce C. Weston Printed in Hong Kong ISBN 978-92-808-1162-9 Library of Congress Cataloging-in-Publication Data Heydon, Kenneth. The rise of bilateralism : comparing American, European, and Asian approaches to preferential trade agreements / Kenneth Heydon and Stephen Woolcock. p. cm. Includes bibliographical references and index. ISBN 978-9280811629 (pbk.) 1. Tariff preferences—United States. 2. Tariff preferences—Europe. 3. Tariff preferences—Asia. I. Woolcock, Stephen. II. Title. HF1731.H49 2009 3820.753—dc22 2009000015 Contents Figures................................................................. vii Tables.................................................................. viii Boxes .................................................................. ix Abbreviations ......................................................... x Acknowledgements . ............................. xiii Part I: Introduction ................................................... 1 1 Overview........................................................... 3 Part II: The issues: The nature and scope of PTA policy provisions .......................................................... 15 2 Tariffsandrulesoforigin ......................................... 17 3 Non-tariff barriers: Commercial instruments, TBT/SPS and public procurement . ............................. 46 4 Servicesandinvestment........................................... 88 vi CONTENTS 5 Intellectual property rights, the environment and core labour standards .......................................................... 123 Part III: Goals and outcomes: US, European and Asian approaches compared ............................................. 143 6 TheUnitedStates................................................. 145 7 TheEuropeanUnion ............................................. 161 8 TheEuropeanFreeTradeAssociation .......................... 172 9 Japan .............................................................. 187 10 Singapore.......................................................... 196 Part IV: The effects ................................................... 205 11 AssessingtheeconomicimpactofPTAs......................... 207 Part V: Conclusion ................................................... 229 12 Key findings and looking ahead .................................. 231 Annexes ............................................................... 267 1 The United States of America’s preferential trade agreements 269 2 TheEuropeanUnion’spreferentialtradeagreements.......... 273 3 EFTA’s preferential trade agreements and Joint Declarations onCo-operation................................................... 278 4 Japan’spreferentialtradeagreements ........................... 284 5 Singapore’spreferentialtradeagreements....................... 287 References ............................................................ 292 Index .................................................................. 301 Figures 2.1 Existing MFN tariff rates for five PTA core entities for agricultural and industrial products . ......................... 21 10.1 Singapore’sPTAtimetable .................................... 199 11.1 Trade in goods between the United States and Chile . 208 11.2 US–Mexicoinvestmentflows.................................. 209 vii Tables 2.1 The coverage of HS 8 tariff lines for imports into the UnitedStatesfromvariousPTApartners .................... 22 2.2 The coverage of HS 8 tariff lines for imports into the EuropeanUnionfromvariousPTApartners ................ 25 2.3 The coverage of HS 8 tariff lines for imports into EFTA . 27 2.4 The coverage of HS 8 tariff lines for imports into Japan fromselectedPTApartners................................... 29 2.5 The coverage of HS 8 tariff lines for imports into Singapore....................................................... 32 2.6 Typologyofrulesoforigin(KyotoConvention)............. 35 2.7 Comprehensive comparison of rules of origin frameworks . 38 3.1 ComparisonofTBTprovisions ............................... 55 3.2 ProvisionsconcerningSPSmeasureswithinPTAs........... 65 3.3 SPSprovisionsinexistingEUPTAs.......................... 67 3.4 Comparison of procurement provisions in various agreements ..................................................... 78 4.1 Trade in services of the core entities with the rest of the world,2005..................................................... 92 4.2 WTOprovisionsoninvestment ............................... 108 4.3 TheNAFTAmodelsofinvestmentagreements.............. 110 4.4 The progressive liberalization model of investment agreements:Anillustrativelist................................ 114 5.1 TRIPS-plusprovisionsinpreferentialtradeagreements..... 126 12.1 Buildingblockorstumblingblock?........................... 253 viii Boxes 1.1 BilateralismandASEAN...................................... 12 3.1 ElementsofTBTprovisionsexplained ....................... 56 3.2 Typical elements of provisions on public procurement . 74 12.1 Another setback for the Doha Development Agenda: The July 2008 Ministerial . ....................................... 258 ix Abbreviations ACP African, Caribbean and Pacific Group of States AFL-CIO American Federation of Labor and Congress of Industrial Organizations AFTA ASEAN Free Trade Area ANSZCEP Agreement between New Zealand and Singapore on a Closer Economic Partnership APEC Asia-Pacific Economic Cooperation ASEAN Association of Southeast Asian Nations ASEANþ3 Association of Southeast Asian Nations, plus China, Japan and Korea ASEANþ6 Association of Southeast Asian Nations, plus Australia, China, India, Japan, Korea and New Zealand BIT bilateral investment treaty BSE bovine spongiform encephalopathy CA conformance assessment CAFTA Central American Free Trade Agreement [with the United States] CAN Andean Community CARICOM Caribbean Community CARIFORUM Caribbean Forum of ACP States CEECs Central and Eastern European countries CEPT Common Effective Preferential Tariff CGE computable general equilibrium model cif cost, insurance, freight valuation CRTA Committee on Regional Trade Agreements [WTO] CT change of tariff classification x ABBREVIATIONS xi CTC changeoftariffchapteratHS2level CTH change of tariff heading at HS 4 level CTI changeoftariffitematHS6level CTS change of tariff sub-heading at HS 8 level DDA Doha Development Agenda ECJ European Court of Justice ECT exception attached to a particular change of tariff heading EEA European Economic Area EEC European Economic Community EFTA European Free Trade Association ENP European Neighbourhood Policy EPA Economic Partnership Agreement ESFTA Europe-Singapore Free Trade Agreement EU European Union Euro-Med Euro-Mediterranean Partnership FAO Food and Agriculture Organization FDI foreign direct investment fob free on board valuation FTA free trade agreement/area
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