The World Trade Organization in the New Global Economy

The World Trade Organization in the New Global Economy

Trade and Investment Issues in the New Millennium Round

New Horizons in International Business series

Edited by Alan M. Rugman and Gavin Boyd

Despite the disruption of the multilateral trade talks at Seattle in December 1999, the work of the World Trade Organization (WTO) continues. The trade and investment issues that have been outstanding since the Seattle events are explored in this far reaching book. The distinguished contributors combine several analytical approaches for a comprehensive assessment of the trends, problems and opportunities demanding attention in international trade negotiations.

Chapter 5: Triad policy and interdependencies in the WTO

Gavin Boyd

Subjects: business and management, international business, economics and finance, international economics


Gavin Boyd On trade and investment issues the USA, the European Union, and Japan interact at a level of global dominance in the multilateral pattern of the World Trade Organization (WTO). This is a pattern in which Atlantic relations are the most active, on the basis of cultural affinities and high levels of structural interdependence, and are for the most part managed separately from US– Japan relations: the European Union and Japan interact distantly, thus in effect allowing the USA much scope for initiative. In this regard the USA has strong incentives to assert its interests as it has to cope with very large current account deficits. Associated with the overall configuration of Triad interactions are diverse asymmetries of policy interdependence, attributable to nationally very distinctive problems of advanced political development, diverging structural profiles, and differing orientations toward, as well as capacities for, competitive or cooperative management of foreign economic policies. The interactions are not becoming sufficiently productive to sustain a system of collective management, primarily because of the problems of advanced political development, which for diverse reasons are tending to become more intractable as the largely ungoverned processes of globalization pose structural and distributional issues. The structural and policy interdependencies in the global political economy set requirements for building comprehensive systems of collective management, but the highly constructive political entrepreneurship that is clearly needed is not being provided. The problems of advanced political development cause macromanagement deficiencies, which tend to become more serious...

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