This article argues that the inclusion of provisions for the settlement of disputes in regional trade agreements enhances, rather than disrupts, the centrality of the World Trade Organization's dispute settlement system. Using a dataset that organizes exclusion clauses and special provisions for dispute settlement in regional trade agreements, the study develops a thematic typology that is used to examine the ways that disputes may be channelled between regional and multilateral dispute settlement institutions. This comparative empirical dimension offers a more accurate picture of the global contours of regionalization as they relate to the juridical aspects of trade governance, suggesting that the decentralization of dispute settlement inferred by the rapid development of regional bodies has been overstated.
There were 288 regional trade agreements (RTAs) in force at the end of 2018, approximately one quarter (27%) of which included digital trade provisions. These e-commerce chapters have evolved from simple statements, to more comprehensive attempts to cultivate digital trade. This article tests the hypothesis that as e-commerce chapters have become more common and more detailed, their legal enforceability has also risen. Enforceability is measured using a qualitative empirical analysis of seventy-eight e-commerce chapters in RTAs notified to the World Trade Organization. The first section reviews recent initiatives to map and track e-commerce provisions in RTAs. The second section uses count data and text-as-data to develop a time-sequence, process tracing examination of the relationship between e-commerce chapters and dispute settlement. The analysis emphasizes the trajectory of development, from earliest related provisions in 2001 to next-generation agreements such as the Trans-Pacific Partnership (CPTPP) and the newNorth American agreement, the United States-Mexico-Canada Free Trade Agreement (USMCA). The conclusion provides a discussion of the consequences of this evolving relationship for the multilateral governance of trade at the WTO.
Trade governance rests upon certain economic assumptions and the ensuing political compromises made possible by the growth of an incremental legal consensus. The main economic assumptions are that trade will deliver upon the objectives of socio-economic development, stable, long-term employment opportunities and poverty reduction. These assumptions are theoretically sound, but are increasingly challenged by the complex political realities of global trade. The study of trade in the field of international political economy (IPE) has deep roots in the postwar disciplines of economics and political science. The literature on the history of trade regulation places the current system, with its emphasis on the legitimizing imprimatur of political power and the significance of binding treaty, into a more nuanced context in which present practices, while sometimes novel, are frequently older than most policy makers realize. In the two decades since the finalization of the Uruguay Round and the creation of the World Trade Organization (WTO), a host of significant issues have arisen as scholars and policy makers attempt to implement the WTO’s mandate and navigate the political waters of trade regulation as it relates to domestic law and policy. These include the set of issues raised by the broadening of trade regulation post-Uruguay Round to include trade related intellectual property rights and trade in services, the contentious issue of trade and economic development, and the issue of WTO reform.
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