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, York University 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. 1 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 2 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 political economy. 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 3 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. "Globalization 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) 4 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.