International Trade and Economic Development: Problematizing the Trade/Governance Interface

Globalization Studies 712 Winter Term 2007

Professor: Prof. Daniel Drache Classroom: KTH 227A Office: Robarts Centre for Canadian Studies, Suite 227 York Lanes, Office Hours: By appointment Tel: 416.736.5415 Email [email protected] Website www.yorku.ca/drache

The goal of this course is to give graduate students a better understanding of the most important legal, economic and institutional issues and challenges surrounding international trade and economic development. I focus on the international trading system as both a multilateral institution and as an increasingly busy and important corner of a fragmented system of international law. The implications for development are significant. The course materials are drawn from the trade and development literatures in political science, economics and law, with a focus on the most important ideas shaping the international system today. My expectation is that this course will prepare you to write a focused and in-depth paper analyzing some legal or institutional feature of the GATT/WTO system as it relates to the challenges and opportunities facing developing nations after the Doha ‘development’ Round of trade negotiations.

This seminar will be highly interactive and participatory. Come ready to think, debate, discuss and analyze as a group.

Readings: Readings are selected from one textbook that every student should purchase, and a number of journal articles and intergovernmental documents. These are available as e-resources in the McMaster library system or elsewhere online.

Textbook: Trebilcock, Michael J., and Robert Howse. The Regulation of International Trade. 3rd ed. London: Routledge, 2005. (Purchase price on Amazon.ca is $76.95) Articles: Access via McMaster e-resources, unless otherwise specified.

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Evaluation: Final grades will be composed of the following parts:

Participation 50% (Includes essay presentation and trade/development chronology. Students will also take turns leading discussion in class) Term Paper 50%

Academic dishonesty Academic dishonesty consists of misrepresentation by deception or by other fraudulent means and can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: ‘Grade of F assigned for academic dishonesty’), and/or suspension or expulsion from the university. It is your responsibility to understand what constitutes academic dishonesty. For information on the various kinds of academic dishonesty please refer to the Academic Integrity Policy, specifically Appendix 3, located at http://www.mcmaster.ca/senate/academic/ac_integrity.htm The following illustrates only three forms of academic dishonesty: 1. Plagiarism, e.g. the submission of work that is not one's own or for which other credit has been obtained. 2. Improper collaboration in group work. 3. Copying or using unauthorised aids in tests and examinations.

Seminar Topics

Week Date Topic

Week 1 January 9th Introduction and Course Context: The Doha Development Round of Trade Negotiations

Week 2 January 16th The Structure of International Trade: Markets, Rules and Institutions

Week 3 January 23rd Beyond Trade Theory: Debates and Controversies

Week 4 January 30th Economic Development in an Era of Global Flows

Week 5 February 6th Trade and Development: Overlapping and Competing Institutions

Week 6 February 13th Controversies in International Trade Governance: Dispute Settlement and Contingent Protection Measures

Reading Week is February 19th – 24th

Week 7 February 27th Controversies in International Trade Governance II: Market Access for Agricultural Products and Textiles

Week 8 March 6th Front Page Governance Issues: Intellectual Property Rights, Investment and Trade in Services

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Week 9 March 13th The Politics of Lower Expectations: Evaluating Doha

Week 10 March 20th Trade and Development Beyond the WTO: The Future of Public International Law

Week 11 March 27th Essay Preparation

Week 12 April 3rd Essay presentations

Week 1: Introduction and Course Context: The Doha Development Round of Trade Negotiations

Our task this week is to orient ourselves to the course and begin the discussion of global . The reading list will be distributed and a brief overview of the course will be given.

For an overview of the Doha Development Round, please read:

Daniel Drache. Trade, Development and the Doha Round: A Sure Bet or a Train Wreck? [PDF file]. Robarts Centre for Canadian Studies, York University, 2005. Available from www.yorku.ca/drache or www.cigionline.org.

Week 2: The Structure of International Trade: Markets, Rules and Institutions

Task: To gain an overview of the WTO system, the trade theory upon which it is based, and the policy environment in which it operates.

Readings: Trebilcock and Howse: Chapter 1 “The evolution of international trade theory and policy,” Chapter 2 “The basic elements of the GATT/WTO, the North American Free Trade Agreement, and the European Union”

Veijo Heiskanen. "The Regulatory Philosophy of International Trade Law." Journal of World Trade 38, no. 1 (2004): 1-38. (all journal articles should be accessed via McMaster’s e-resources on the library web site)

Week 3: Beyond Trade Theory: Debates and Controversies

Task: To move beyond a discussion of basic structure and process and begin to unpack some of the key debates and controversies in the literature. (Remember to prepare your chronology of the most important dates in the trade governance and development timeline.)

Readings: Nancy Birdsall, Dani Rodrik, and Arvind Subramanian. If Rich Governements Really Cared About Development [PDF file]. International Centre for Trade and

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Sustainable Development, 2005 [cited April 23rd 2006]. Available from www.ictsd.org/dlogue/2005-07-01/Docs/RODRIK- BRIDSALL_SUBRAMANIAN_what-rich-can-do_April2005.pdf.

Dani Rodrik. "Trading in Illusions." Foreign Policy, March 2001.

Joseph E. Stiglitz and Andrew Charlton. Aid for Trade: A Report for the Commonwealth Secretariat [PDF file]. United Nations Economic Commission for Africa, 2006 [cited June 8th 2006]. Available from www.uneca.org.

Moises Naim. "Washington Consensus or Washington Confusion?" Foreign Policy, Spring 2000.

David Dollar and Aart Kraay. "Trade, Growth and Poverty." Washington: World Bank (Development Research Group), 2001. Available at http://rru.worldbank.org/Documents/PapersLinks/442.pdf.

Howard L. M. Nye, Sanjay G. Reddy, and Kevin Watkins. "Dollar and Kraay on 'Trade, Growth and Poverty': A Critique." International Development Economics Association, 2002. available at http://www.maketradefair.org/en/assets/english/finalDKcritique.pdf.

Week 4: Economic Development in an Era of Global Flows

Task: To examine our understanding of the relationship between trade flows and economic development in the context of the information revolution. (Trade and development chronology due)

Readings: Daniel Drache and Marc D. Froese. " and the Cultural Commons: Identity, Citizenship and Pluralism after Cancun." New Political Economy 11, no. 6 (2006).

Lawrence Lessig. Free Culture: How Big Media Uses Technology and the Law to Lock Down Culture and Control Creativity. New York: The Penguin Press, 2004. The entire book is available at no cost at www.free-culture.cc/.

Joyce Zemans. "Advancing Cultural Diversity Globally: The Role of Civil Society Movements." Paper presented at the Global Flows, Dissent and Diversity: The New Agenda, Toronto 2004. Available at www.robarts.yorku.ca/projects/global.

James Boyle. "Foreword: The Opposite of Property?" Law and Contemporary Problems 66, no. 1 and 2 (2003). Available at www.law.duke.edu/shell/cite.pl?66+Law+&+Contemp.+Probs.+1+(WinterSpring +2003)

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Week 5: Trade and Development: Overlapping and Competing Institutions

Task: To familiarize ourselves with developing countries’ experience with multilateral trade institutions and programs inside and outside the WTO.

Readings: Trebilcock and Howse Chapter 14 “Trade and developing countries”

Marc L. Busch. Overlapping Institutions and Global Commerce: Forum Shopping for Dispute Settlement in International Trade [PDF file]. Georgetown University, School of Foreign Service, [cited June 27th 2006]. Available from www.georgetown.edu/users/mlb66/.

Daniel Drache. "The Short but Amazingly Significant Life of the International Trade Organization (ITO)--Free Trade and Employment: Friends or Foes Forever?" Available at www.robarts.yorku.ca/projects/wto/index.html.

Mark S. LeClair, Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade World Development, Volume 30, Number 6, June 2002, pp. 949-958

Week 6: Controversies in International Trade Governance: Dispute Settlement and Contingent Protection Measures

Task: To examine to two of the most prominent challenges faced by developing countries at the WTO – Aggressive use of subsidies, countervailing measures and antidumping measures, and access to the Dispute Settlement Mechanism.

Readings: Trebilcock and Howse Chapter 3 “Dispute settlement,” Chapter 7 “Antidumping Laws,” and Chapter 8 Subsidies, countervailing duties and government procurement.”

Chad P. Bown, “Developing Countries as Plaintiffs and Defendants in GATT/WTO Trade Disputes, The World Economy 27, 1 January 2004, 59-80.

James Smith, ‘Inequality in international trade? Developing countries and institutional change in WTO dispute settlement’, Review of International Political Economy, Volume 11, Number 3, August 2004, pp. 542-573

Jeffrey M. Drope and Wendy L. Hansen. "Antidumping's Happy Birthday?" The World Economy 29, no. 4 (2006).

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Week 7: Controversies in International Trade Governance II: Market Access for Agricultural Products and Textiles

Task: To gain an understanding of the main issues surrounding market access for agricultural products and textiles – two of the most important industrial sectors for the developing south.

Readings: Trebilcock and Howse Chapter 10 “Trade in agriculture”

Kym Anderson and Will Martin, “Agricultural Trade Reform and the Doha Development Agenda” The World Economy, Volume 28, Number 9, September 2005, pp. 1301-1327(27).

Amrita Narlikar and Diana Tussie ‘The G20 at the Cancun Ministerial: Developing Countries and Their Evolving Coalitions in the WTO’ The World Economy, Volume 27, Number 7, July 2004, pp. 947-966

Kumar Hurreeram Dinesh and David Little, ‘International apparel trade and developing economies in Africa’ International Journal of Social Economics, Volume 31, Numbers 1-2, January 2004, pp. 131-142.

EU Textile Imports from China: Some Important Points [HTML file]. European Union Trade Commission, 2005 [cited May 25th 2006]. Available from http://ec.europa.eu/comm/trade/issues/sectoral/industry/textile/memo120905_en.h tm.

Eric Helleiner. "When Finance Was the Servant: International Capital Movements in the Bretton Woods Order." In Political Economy and the Changing Global Order, edited by Richard Stubbs and G. Underhill, 163-75. Toronto: McLelland and Stewart, 1993.

Week 8: Front Page Governance Issues: Intellectual Property Rights, Investment and Trade in Services

Task: To provide a framework of analysis for the most prominent governance issues facing the WTO today.

Readings: Trebilcock and Howse Chapter 11 “Trade in Services, Chapter 12 “Trade-related Intellectual Property (TRIPS),” and Chapter 13 “Trade and investment.”

Laurence Helfer. "Regime Shifting: The TRIPS Agreement and New Dynamics of International Intellectual Property Lawmaking." Yale Journal of International Law 29, no. 1 (2004).

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J. Crystal, ‘Bargaining in the negotiations over liberalizing trade in services: power, reciprocity and learning’ Review of International Political Economy Volume 10, Number 3, August 2003, pp. 552-578.

David Woodward, ‘The GATS and trade in health services: implications for health care in developing countries” Review of International Political Economy, Volume 12, Number 3, August 2005, pp. 511-534(24).

Patents Vs. Patients: Five Years after the Doha Declaration [PDF file]. Oxfam International, 2006. Available from www.oxfam.org.uk/what_we_do/issues/health/bp95_patents.htm.

Background Reading: Susan K. Sell. Private Power, Public Law: The Globalization of Intellectual Property Rights. Cambridge: Cambridge University Press, 2003. (See especially Chapter 4: “The domestic origins of a trade-based approach to intellectual property”)

Michael P. Ryan. Knowledge Diplomacy: Global Competition and the Politics of Intellectual Property. Washington, D.C.: The Brookings Institution Press, 1998. (See especially Chapter 2: “Patents for technological innovation”)

Week 9: The Politics of Lower Expectations: Evaluating Doha

Task: To evaluate the expected outcomes of the Doha Round of trade negotiations with respect to poverty reduction and developing country membership.

Readings: Daniel Drache and Marc D. Froese. An Empirical Analysis of Why the WTO Is Broken and Cannot Be Fixed - Yet [PDF file]. Robarts Centre for Canadian Studies, York University, 2006. Available from www.yorku.ca/drache.

Robert Wolfe. "Crossing the River by Feeling the Stones: Where the WTO Is Going after Seattle, Doha and Cancun." Review of International Political Economy 11, no. 3 (2004).

Jagdish Bhagwati. "From Seattle to Hong Kong." Foreign Affairs December (2005).

Joseph E. Stiglitz. "Social Justice and Global Trade." Far Eastern Economic Review 169, no. 2 (2006). Available at www.globalpolicy.org/socecon/trade/2006/0306stiglitzjustice.pdf.

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Week 10: Trade and Development Beyond the Doha Round: The Future of Public International Law

Task: To summarize our examination of the relationship between trade governance and economic development, and to speculate about the future of the trading system in an increasingly complex system of public international law

Readings: Trebilcock and Howse Chapter 19 “Conclusion: the future of the global trading system”

Sylvia Ostry. "Who Rules the Future? The Crisis of Governance and Prospects for Global Civil Society." Paper presented at the New Geographies of Dissent: Global Counter-Publics and Spheres of Power, Robarts Centre for Canadian Studies, York University, January 27-28 2006. Available at www.yorku.ca/robarts/projects/global/confereneces.html.

Martti Koskenniemmi. "Fragmentation of International Law: Difficulties Arising from the Diversification and Expansion of International Law." Report of the Study Group of the International Law Commission. Geneva: United Nations International Law Commission, 2006. Available at http://untreaty.un.org/ilc/texts/1_9.htm.

Peter Drahos. An Alternative Framework for the Global Regulation of Intellectual Property Rights [PDF file]. Centre for Governance of Knowledge and Development, 2005 [cited June 3rd 2006]. Available from http://cgkd.anu.edu.au/menus/workingpapers.php.

Week 11: Essay Preparation

Week 12: Essay Presentations

Each student will give a 15 minute presentation of their essay topic. This should include the key institutional and/or legal features examined, the research question being posed, and preliminary ideas and findings.

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