Trading Blocs and Multilateralism in the World Economy

Abstract

The resurgence of continental trading blocs throughout the 1980s will influence the nature and evolution of the world economy in the 1990s and beyond. In this paper, we argue that classical economic analysis of trading blocs is inconclusive, and regionalism cannot be understood in economic terms alone. We focus on an examination of the relationship that exists between trading bloc formation and more fundamental economic and social trends taking place in the industrialized economies since the Second World War. Our contention is that regionalism represents one of the most fundamental restructuring processes affecting the world economy since the principles of international trade were established at the Bretton Woods Conference. Regionalism and multilateralism represent competing, but not necessarily mutually exclusive, principles underpinning economic integration and trade in the global economy. The end products of this competition are the two potentially complementary, spatial processes of trade bloc formation and globalization. Consequently, not only globalization but also regionalism are at the center of the economic transformation of contemporary industrial society and changing international relations.

The Development of Trade Blocs in an Era of Globalisation

“…They argue in accordance with the New Trade Theory that "scale economies and large efficient markets are instrumental in shaping emerging regional configuration" (page 284). Michalak and Gibb (1997) indicate that this evidence is a strong case for "regionalism as one o f the most influential factors determining world trade flows" (page 266). Andresen (2009a) finds that, over time, trade clusters have become more regionally focused due to an increasing importance o f distance.…”

“…Economic flows do not only follow absolute space, but are also led by relative distance, formed by historical ties, shared cultures, and (changing) political systems. Countries trade with their 'natural partners' Norheim, 1993, Frankel et al, 1995;Michalak and Gibb, 1997). Poon and Pandit (1996) investigated the importance o f spatial structure in the process o f regionalisation.…”

Paradiplomacy, protodiplomacy and the foreign policy aspirations of Quebec and other Canadian provinces

“…104 -126). This development is particularly notable within the context of the reinforcement of regional organizations and associations, such as the European Union or, in the case of Canadian paradiplomatic activity, NAFTA (Michalak andGibb 1997, pp. 265 -269, Mansfield andMilner 1999, pp.…”

Art. Xxiv Del Gatt-Omc: La Relación Entre Regionalismo Y Multilateralismo

“…La visión intermedia destaca que el regionalismo y el multilateralismo constituyen instancias rivales, pero no exclusivas, ya que el resultado es la complementariedad (Michalak y Gibb, 1997). Aquí se defiende la idea de que los acr no debilitan el sistema multilateral, sino que operan como building blocks de la liberalización no discriminatoria (Herz y Waner, 2011).…”