A review of EIAs on trade policy in China

The purpose of this study is to review the EIA work that has been carried out on trade policy in China through four case studies, and illustrate how trade policy EIAs can be helpful in achieving better environmental outcomes in the area of trade. Through the trade policy EIA case studies we try to argue for the feasibility of conducting EIAs on economic policies in China. We also discuss the implications of the case studies from the point of view of how to proceed with EIAs on economic policy and how to promote their practice.

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Heterogeneous Effects of Preferential Trade Agreements: How does Partner Similarity Matter?

This paper examines how dissimilarity of partner country characteristics affects the change in trade flows under a preferential trade agreement (PTA). Our results show that the more similar the partner countries are, the larger the increase in intra-bloc trade is under a PTA. Particularly, there is a substantial “development neighborhood premium”: the gain for developing countries from a PTA among themselves is about two and a half times that from partnering with industrial countries. Our findings challenge the perception that by becoming more integrated with industrial countries, developing countries could automatically gain access to a much larger and lucrative export market.

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Assessing Foreign Aid’s Long Run Contribution to Growth and Development

This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of economic transformation (e.g., share of agriculture and industry in value added). Focusing on long-run cumulative effects of aid in developing countries, and taking due account of potential endogeneity, a coherent and favorable pattern of results emerges. Aid has over the past 40 years stimulated growth, promoted structural change, improved social indicators, and reduced poverty.

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Institutional Impact of Foreign Direct Investment in China

China’s success in attracting high levels of foreign direct investment (FDI) has drawn a lot of attention from around the world, and so has the fast growth of Chinese regions that have enjoyed the lion’s share of the FDI inflow. The specific mechanisms through which FDI has benefited the country’s economic development, however, are less clear than the spectacular growth in both the capital flow and the economy.

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How the world trade community operates: norms and discourse / Sungjoon Cho

Based on the new conceptualization of the world trading system as the world trade ‘community’, this article illuminates its internal operation based on legal discourse. The article first defines WTO norms as lingua franca of the world trade community that enables various forms of discourse among members of the community. It then introduces three main institutionalized forms of the WTO discourse, namely adjudication, peer review, and consultation/negotiation. These three forms of WTO discourse are mainly responsible for the diurnal operation of the world trade community. The article also explores the intermodal dynamics among these three forms of WTO discourse and demonstrates that such dynamics might generate both positive and negative consequences.

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The WTO and Regional Trade: a family business? The WTO compatibility of regional trade agreements with non-WTO-members

Numerous WTO members pursue regional economic integration with both other members and non-WTO-members. The resulting derogation from the most-favoured-nation principle needs to be justified in accordance with the relevant WTO provisions. Regional integration in the service sector is expressly allowed between WTO and non-WTO members pursuant to GATS Article V. In the absence of clear regulation, it has been questioned whether the same is true for regional trade agreements (RTAs) covering trade in goods. Providing a comprehensive interpretation, this paper argues that neither GATT Article XXIV nor the Enabling Clause require the WTO membership of all the parties to an RTA.

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Shining a light on fossil fuel subsidies at the WTO: how NGOs can contribute to WTO notification and surveillance

Fossil fuel subsidies undermine efforts to mitigate climate change, and they damage the trading system. Multilateral discussion is hampered by inconsistent definitions and incomplete data, which could increase the risks of WTO disputes. Members do not notify such subsidies as much as they should under the Agreement on Subsidies and Countervailing Measures (ASCM), which limits the usefulness of the SCM Committee. The reports of the Trade Policy Review Mechanism on individual countries and on the trading system draw on a wider range of sources, creating an opportunity for non-governmental organizations (NGOs) to provide the missing data from publicly available sources. We suggest a new template that could be used for such third-party notifications. The objective is to shine a light on all fossil fuel subsidies that cause market distortions, especially trade distortions. The result should be better, more comparable data for the Secretariat, governments, and researchers, providing the basis for better-informed discussion of the incidence of fossil fuel subsidies and rationale for their use.

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Trade Patterns and Determinants of International Specialization Structure between ASEAN and China

China and ASEAN are recognized as the most important markets in the world, hence they have emerged as global factories and parts production bases. And trade between China and ASEAN is rapidly expanding and ASEAN has taken position as one of China’s three major trading partners. Over the last 20 years, there has been a rapid increase in intra-industry trade where differentiated products are traded within the same industries between China and ASEAN countries. Empirical analysis on determinants of the international specialization structure between China and ASEAN countries shows that the deepening structure of vertical international specialization between the two regions over the past 20 years has been directly influenced by variables representing national characteristics, such as distance (trading cost), common language, the size of the national economy and income gap as well as intra-regional foreign direct investment.

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WTO: European Communities – Measures Prohibiting the Importation and Marketing of Seal Products

The case of European Communities – Measures Prohibiting the Importation and Marketing of Seal Products (EC – Seal Products)2 raised the issue of whether the EU Seal Regime3, which prohibits the importation and marketing of seal products, was justified under the right to protect public morals. Besides this issue, the complainants – Canada and Norway – challenged the discriminatory nature of the ban, and the exceptions thereof, which allegedly discriminated against their industries. In May 2014, the Appellate Body (AB) issued its decision in a very complex and controversial case. Although on different grounds, the AB upheld the Panel’s finding that the EU Seal Regime was in some respects discriminatory under Articles I:1 (Most-Favoured Nation) and III:4 (National Treatment) of the General Agreement on Tariffs and Trade 1994 (GATT). But, the AB confirmed the Panel’s finding that the EU Seal Regime was justified under Article XX (a) of the GATT public morals exception. The AB, however, found that the EU Seal Regime was not applied in a manner that met the requirements of the Chapeau Article XX of the GATT. The AB asserted that the design of the EU Seal Regime could lead to the arbitrary and unjustifiable discrimination between countries where the same conditions for seal welfare prevailed. In addition to this, the AB decision provides an interpretation of de facto discrimination under Articles 1:1 and III:4 of the GATT, as well as shedding some light on the constitution of ‘technical regulations’ according to the WTO Agreement on Technical Barriers to Trade (TBT).

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Bilateral Treaty Relations between Korea, China and Japan

Recognizing the importance of emerging Northeast Asian economies, this paper attempts to define strategies for trilateral economic integration of Korea, China and Japan in regard to their international treaty practices. An overview of the bilateral treaties between aforementioned states evinces that such treaties, economic or non-economic, have contributed to the progress of the regional integration both directly and indirectly.

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International Cases referring to the Vienna Convention Rules on Treaty Interpretation and Interpretative Mechanisms in Regional Trade Agreements

Treaty interpretation is an important process through which meaning is given to what have allegedly been agreed between states. In interpreting international agreements, international tribunals often refer to general or customary rules of treaty interpretation codified in Articles 31 to 33 of the Vienna Convention on the Law of Treaties. In the event states provide specific rules of interpretation in a particular treaty, such rules are applied.

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Modes of Reasoning in WTO Law

How the law reasons is central to its legitimacy. This article examines how legal reasoning is characterized by two types of logic, deductive and inductive, which are apparent in the legal system of the World Trade Organization (WTO). The article goes on to suggest that the interaction of deductive reasoning in the form of presumptions and inductive reasoning in the form of proof give rise to a third type of logic, abductive logic, defined as the ‘best’ estimate on current knowledge. It then examines how this three-fold combination of ideas is displayed in WTO law and explores what implications this has for understanding of the WTO legal system.

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Communication Flows in International Economic Law

The recent WTO Appellate Body’s decision on European Communities – Measures Prohibiting the Importation and Marketing of Seal Products (Seal Products case) highlights the sensitivity surrounding the invocation of public morals to restrict imports based on the welfare concerns for animals with respect to imports of animal products. The ‘public moral’ exception has been in the books of the multilateral trading system for some time and slowly but surely the WTO dispute settlement is being engaged in clarifying the parameters of the ‘public morals’ exception in international trade.

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Is India Skating on Thin Ice?

The problem of poverty is an acute one in India. Approximately thirty-three percent of the Indian population live in dire poverty. However, India’s food security and public distribution schemes have been creating an imbalance as far as its international obligations are concerned primarily due to India’s commitment to secure on the one hand, the rights of the poor with respect to food; and on the other hand the rights of the farmers who are highly dependent on the erratic weather conditions of the nation. This thereby makes it incumbent for the nation to guarantee this basic human right to food. However, the relevant provisions of the WTO’s Agreement on Agriculture states that such governmental support for the purpose of food security and public stockholding programs shall be no more than the ceiling limit of ten percent has caused some concern for Indian policy-makers. Consequently, it was agreed at the recent Bali Ministerial Conference that by virtue of the peace clause, member-nations of the WTO would not invoke dispute settlement proceedings against a developing nation crossing the 10% mark, until a permanent solution is agreed upon. This paper delves to understand implications of India’s food security and public distribution schemes in the international realm; and thus suggest solutions as far as imbalances are concerned.

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The growth-employment relationship since 2000 – India

This discussion paper is a brief assessment of the employment challenge that became manifest in the Indian economy during the past decade. It analyses various available economic indicators and presents estimates that highlight the structural transformations that have taken place. The key issue that the paper examines is whether high rates of growth registered by the Indian economy in the past decade were accompanied by substantive growth in employment. It brings out how the Indian economy over the last decade seems to have experienced all the classic features earmarked in literature while discussing the crisis of employment in case of large developing countries.

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Trade finance in East Asia : Potential responses to the shrtofall

The crisis of 2008 saw many European banks reduce their provision of trade finance in East Asia. Notwithstanding the actions of the Group of Twenty and other bodies to redress this, a substantial shortfall in trade finance facilities in the region remains. This article explores the development of this shortfall and analyses potential responses to it. These responses range from some much needed further revisions to the Basel III rules, to the deepening of cross-border cooperation, creating a ring-fenced liquidity pool for trade finance, encouraging co-financing among the various providers of trade finance both private and public and establishing a regional trade finance database. In addition, the article ponders the likelihood of China’s banks beginning to take a substantial role in providing trade finance to the region. Trade finance offers China’s banks a low risk means of expanding into international business and offers China a way to provide the sort of important service to its region that regional leaders typically seek to provide.

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Aid Policy and the Macroeconomic Management of Aid

This is an introduction to the UNU-WIDER special issue of World Development on aid policy and the macroeconomic management of aid. We provide an overview of the 10 studies, grouping them under three sub-themes: the aid–growth relationship; the supply-side of aid (including its level, volatility, and coordination of donors); and the macroeconomic framework around aid.

Full-text available in .dpf

Non-Farm Activity, Household Expenditure, and Poverty Reduction in Rural Vietnam: 2002–2008

Diversifying into non-farm activities has been suggested as an effective way out of poverty for rural households in developing countries. Using the Vietnamese Household Living Standards Surveys of 2002, 2004, 2006, and 2008, we test this claim, and investigate the effect of non-farm sector involvement on poverty and expenditure growth. Our endogeneity-corrected estimates show that an additional household member involved with non-farm activity reduces the probability of poverty by 7–12% and increases the household expenditure by 14% over a two-year period. Our findings also indicate that non-farm involvement reduces the hours worked on farm but not the household agricultural income.

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Library acquisitions — August 2014

Dear all,

We are pleased to send you our list of selected new acquisitions for August 2014. You can send your requests to Web.Librarian

The list is also available on Library’s website: http://intranet/__resources/library/new_for_you_new_books.html

For continuous updates on the latest trade news, don’t forget to check out the "Latest in trade" http://intranet/en/resources/library/library.htm

Kind regards,

Your WTO Library Team

Covers Title, Authors/Editor details, WTO catalogue records email request links Previews

Boosting pharmaceutical innovation in the post-TRIPS era: real-life lesson for the developing world / Burcu Kilic.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1924789

Request: web.librarian@wto.org

Preview: http://goo.gl/o6y0mU

Constructing European Union trade policy: a global idea of Europe / Gabriel Siles-Brügge.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925265

Request: web.librarian@wto.org

Review: http://goo.gl/4WPFqO

Le contentieux de la mise en conformité dans le règlement des différends de l’O.M.C. = Adjudicating compliance in the WTO dispute settlement system / par Andrea Hamann.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925319

Request: web.librarian@wto.org

Preview: http://goo.gl/WL1c3G

The Elgar companion to the International Court of Justice / Robert Kolb.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925203

Request: web.librarian@wto.org

Preview: http://goo.gl/3ezrAH

Food politics: what everyone needs to know / Robert Paarlberg.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925303

Request: web.librarian@wto.org

Preview: http://goo.gl/hMFeU7

Food security in India: policies and challenges / edited by Shyam Kartik Mishra and Babita Agrawal.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925410

Request: web.librarian@wto.org

Review: http://goo.gl/isGv0P

Foreign direct investment and human development: the law and economics of international investment agreements / edited by Olivier De Schutter, Johan Swinnen and Jan Wouters.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925375

Request: web.librarian@wto.org

Preview: http://goo.gl/0TT8gI

Handbook on food: demand, supply, sustainability and security / edited by Raghbendra Jha, Raghav Gaiha, Anil B. Deolalikar.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925267

Request: web.librarian@wto.org

Review: http://goo.gl/Bh6GJn

Intellectual property, indigenous people and their knowledge / Peter Drahos.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925318

Request: web.librarian@wto.org

Review: http://goo.gl/12brfR

International capital markets: law and institutions / Cally Jordan

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925269

Request: web.librarian@wto.org

Review: http://goo.gl/VAeG3W

The protection of geographical indications: law and practice / Michael Blakeney.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1924803

Request: web.librarian@wto.org

Preview: http://goo.gl/6VxF0n

Supply chain perspectives and issues: a literature review / Albert Park, Gaurav Nayyar, Patrick Low.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925212

Request: web.librarian@wto.org

Download: http://goo.gl/c8WCk6

The trade policy of emerging powers: strategic choices of Brazil and India / Laura Carsten Mahrenbach.

WTO catalogue :

http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925311

Request: web.librarian@wto.org

Preview: http://goo.gl/T889Ck

Trade, the WTO and energy security: mapping the linkages for India / edited by Sajal Mathur.

WTO catalogue : http://wto.aquabrowser.com/?itemid=|WTO-Marc|1925423

Request: web.librarian@wto.org

Preview: http://goo.gl/QzT13B