Dress- and Auto- Makers in the “Free Trade” Arena

Even though there have been many studies on the impact of trade liberalisation on labour standards, most of the studies are at national level, and there is a lack of research at industry level. This paper examines the impact of free trade on labour standards in capital- and labour-intensive industries in a developing country. For empirical findings, I take the case of the garment industry, representing labour-intensive industry, and automotive industry, representing capital-intensive industry, in Indonesia in the face of ASEAN Free Trade Area (AFTA). Since the garment industry is a women-dominated industry, while the automotive industry is a men-dominated industry, this paper also employs a feminist perspective. As such, this paper also investigates whether free trade equally affects men and women workers. Besides free trade, other independent variables are also taken into account. Employing quantitative and qualitative methods, empirical evidence shows that there is an indication that free trade has a negative relationship with labour standards in the garment industry, whereas a positive relationships with labour standards in the automotive industry. This implies that free trade might result in decreasing labour standards in labour-intensive industry, while increasing standards in capital-intensive industry. It can also be inferred that free trade unequally affect men and women workers, in that women workers bear the brunt of free trade. The results also show that other internal and external independent variables are indicated to have relationships with labour standards in the garment and automotive industries. Therefore, these variables need to be considered in examining the extent of the impact of free trade on labour standards in labour- and capital-intensive industries.

An exploratory assessment of the potential impact of the free trade area of the americas on the andean community

A través de una simulación llevada a cabo con GTAP, este documento presenta una evaluación preliminar del impacto potencial que el Área de Libre Comercio de las Américas tendría sobre la Comunidad Andina de Naciones. Mantenido por la Universidad de Purdue, el GTAP es un modelo multiregional de equilibrio general, ampliamente usado para el análisis de temas de economía internacional. El experimento llevado a cabo tiene lugar en un ambiente de competencia perfecta y rendimientos constantes a escala y consiste en la completa eliminación de aranceles a las importaciones de bienes entre los países del Hemisferio Occidental. Los resultados muestran la presencia de modestas pero positivas ganancias netas de bienestar para la Comunidad Andina, generadas fundamentalmente por mejoras en la asignación de recursos. Movimientos desfavorables en los términos de intercambio y el efecto de la desviación de comercio con respecto a terceros países, reducen considerablemente las ganancias potenciales de bienestar. De la misma forma, la existencia de distorsiones económicas al interior de la Comunidad Andina tiene un efecto negativo sobre el bienestar. El patrón de comercio aumenta su grado de concentración en el comercio bilateral con los Estados Unidos y la remuneración real a los factores productivos presenta mejoras con la implementación de la zona de libre comercio.

EU-India free trade negotiations threatening access to medicines

Indian firms are major global producers of relatively affordable generic medicines. Access to such drugs makes the difference between life and death for billions of people in the Global South. The Economist noted recently that ‘America should not use trade deals to swaddle drugmakers in excessive patent protections’. Nor should the European Union (EU) impose obstacles to the supply of generic drugs by Indian firms beyond those already mandated by the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement. Free trade negotiations between the EU (reported to be close to completion) constitute a clear threat to the role of India as the ‘pharmacy of the developing world’.

Introduction: IP and the Asia-Pacific ‘spaghetti bowl’ of free trade agreements

The contributions to this book show the strategies and policies of countries in the Asia-Pacific region that have to grapple with international standard setting in what has been called the ‘spaghetti bowl’ of criss-crossing free trade agreements. The chapters show how intellectual property is just one among many political and economic factors that are used in trade off discussions. It leads to an often considerable further raising of IP standards in those countries that agree to higher protection levels, often for reasons that have little to do with the provision of incentives for technological progress. A more nuanced picture of IP protection in Asia shows the different interests of high protection countries, ‘first’ and ‘second tier’ newly industrialized and industrializing countries and the rather peculiar position of Australia and New Zealand. The chapter introduces the contributions to this volume according to these various groups of countries and of international law and the political economy of the region.

Prospects and challenges of Free Trade Agreements unlocking business opportunities in Gulf Co-Operation Council (GCC) markets

Prospects and Challenges with Free Trade Agreements presents the results of a study that assesses the effectiveness of free trade agreements (FTAs) in unlocking international business opportunities in member states of the Gulf Cooperation ...

Free Trade Agreements and US Foreign Policy

The United States has completed numerous free trade agreements (FTAs), but the pattern of these agreements defies conventional explanations. Arguments that are based on domestic interests and economic gains cannot explain the comparative under-performance of US trade agreements. The pattern of US trade agreements is also inconsistent with explanations that focus on state power, which depict FTAs as a “reward” for loyal clients. This article finds a better explanation for the pattern of the United States’ FTAs by consideringthe systemic level of analysis, and in particular the dynamics of the international economic order. It illustrates that strong competition for bilateral trade agreements has resulted in patterns of agreements that the United States cannot easily dominate. This is not to say that the United States has no capacity to finalize trade agreements: the United States remains the world’s most influential nation-state, but the constraints of the international system necessarily limit the degree to which FTAs can serve the interests of US foreign economic policy. The recent evolution of international trade politics, however, indicates that smaller states are comparatively less vulnerable to pressure from great powers, such as the United States.