Review of International Political Economy · 2004 · 55 citations · 23 references
Social SciencesEconomicsInternational RelationsInternational Political EconomyInternational TradeInternational Trade PolicyGlobal Political EconomyGlobal TradeNon-tariff BarriersTrade PolicyTrade RegulationTransnational Political EconomyGlobal Trade PolicyInternational Trade EconomicsInternational Trade GovernanceInternational Trade RegimesNon-tariff Trade BarriersState-society CollaborationTariff ReductionTrade Policy Harmonization
The WTO faces challenges because the trade agenda has shifted from tariff cuts to harmonising domestic regulations, a lack of which hampers its mission and reflects a continuity between external trade dynamics and broader socio‑economic organization. The article contends that contemporary trade problems stem not from harmonisation deficits but from a lack of differentiation in the WTO’s regulatory framework. The authors develop a transnational mercantilism concept based on modern reinterpretations of classical mercantilism and apply it to evaluate four trade‑policy structures: market mechanisms, state‑society embeddedness, environmental linkages, and special/differential treatment for developing countries.
It is often argued that the problems currently facing the World Trade Organization stem from an important shift in the trade agenda from tariff reduction to the harmonisation of domestic regulations considered as non tariff barriers. From this perspective, the lack of harmonisation of domestic regulations severely impairs the capacity of the WTO to fulfil its mission. This article argues, in contrast, that the underlying problems facing the contemporary trade agenda are different, and are caused by a lack of differentiation in the regulatory framework of the WTO. To substantiate this claim, a conception of transnational mercantilism is derived from recent scholarly revisions of classical mercantilism. This clarifies a continuity between the external dimension and the comprehensive pattern of social organisation involved in the political economy of international trade. This framework is used to appraise four structures upon which trade policy is predicated: the implementation of market mechanisms, the embeddedness of trade in state-society relations, the link between trade and the natural environment, and special and differential treatment for developing countries.
23