Bargaining Over Policy Space in Trade Negotiations
Chapter IN: Globalization Reimagined: A Progressive Agenda for World Trade and Investment Law, eds. David Trubek, David Kennedy, Alvaro Santos, and Chantal Thomas. Forthcoming 2019
9 Pages Posted: 6 Jul 2018 Last revised: 6 Oct 2018
Date Written: July 5, 2018
Abstract
Much is written about the problem of trade and social inclusion, but little in terms of concrete proposals. This essay proposes two reforms in trade law to address two issues from the perspective of government intervention for social protection and development. It contends that the World Trade Organization faces two significant issues from this perspective: (a) a failure to deal with imports produced under conditions that violate international labor norms and (b) restrictions it imposes on development strategies that deter legitimate experimentation. The essay proposes the following two reforms: (1) a hybrid antidumping/safeguard regime that would authorize increased tariffs when imported goods are produced under substandard labor conditions; and (2) exceptions to the law on subsidies for legitimate industrial policy for development purposes. While there will be opposition to these measures since the “North” has an interest in the first and the “South” in the second, it may be possible to negotiate a reform package with appropriate safeguards against abuse if political will can be mustered. Otherwise, countries inevitably will push the interpretation of existing WTO law to accommodate these policies, placing greater pressure on the WTO’s judicial bodies. Concrete proposals are needed to address the externalities involved on all sides.
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