Multilateralism and the Multinational Enterprise

How do multilateral institutions influence the strategic choices and actions of international managers? This paper addresses the question by exploring the impact of the World Trade Organization's (WTO) decision-making process on multinational enterprises (MNEs). We discuss the three phases of the WTO decision-making lifecycle - the formulation of trade rules, the implementation of those rules, and the enforcement of the rules – and propose a strategic adjustment framework for understanding how companies alter their strategies and structures in response to the WTO's rules and operations. We argue that the increased relevance of multilateral rules and enforcement mechanisms – embodied in the WTO - is an important influence on MNE strategies and structures because of the increasing embeddedness of the WTO in national levels of regulation. We illustrate this through examples taken from the pharmaceutical, textiles and sugar industries sectors that have witnessed substantial multilateral regulation.

Air traffic rights : the path to multilateralism

Types of Air ABSTRACT: Transport Trading Agreements - Bilateral - “Open Skies” - Plurilateral - Multilateral

Feasible multilateralism and the effects of regionalism

Recent research has underlined the efficiency of the GATT/WTO rules from the standpoint of politically motivated governments, emphasizing that the current multilateral rules are capable of delivering a politically efficient equilibrium. Such an equilibrium is, however, economically inef- ficient. Global free trade, in particular, is generally unattainable even in a fully cooperative world, provided that governments have distributive motivations. In such a context, we show that regional trade agreements can help move the world towards a welfare superior equilibrium. The reason is that, as members of regional trade agreements lower trade barriers against one another, they are induced to reduce their multilateral tariffs as well. Once we account for these endogenous changes–and only then–we find that regionalism can raise world welfare even in a fully cooperative (but political) world. We also find, however, that members are likely to gain "too much" from regional integration, thereby harming outsiders.

Citizens and the future of multilateralism in a polycentric world at 2030: the perspectives of emerging countries for the trading system: the impasse of WTO, the trends of mega agreements, the logic of value chains and the advent of consumers concerns on international trade

A new paradigm is modeling the World: evolutionary innovations in all fronts, new information technologies, huge mobility of capital, use of risky financial tools, globalization of production, new emerging powers and the impact of consumer concerns on governmental policies. These phenomena are shaping the World and forcing the advent of a new World Order in the Multilateral Monetary, Financial, and Trading System. The effects of this new paradigm are also transforming global governance. The political and economic orders established after the World War and centered on the multilateral model of UN, IMF, World Bank, and the GATT, leaded by the developed countries, are facing significant challenges. The rise of China and emerging countries shifted the old model to a polycentric World, where the governance of these organizations are threatened by emerging countries demanding a bigger participation in the role and decision boards of these international bodies. As a consequence, multilateralism is being confronted by polycentrism. Negotiations for a more representative voting process and the pressure for new rules to cope with the new demands are paralyzing important decisions. This scenario is affecting seriously not only the Monetary and Financial Systems but also the Multilateral Trading System. International trade is facing some significant challenges: a serious deadlock to conclude the last round of the multilateral negotiation at the WTO, the fragmentation of trade rules by the multiplication of preferential and mega agreements, the arrival of a new model of global production and trade leaded by global value chains that is threatening the old trade order, and the imposition of new sets of regulations by private bodies commanded by transnationals to support global value chains and non-governmental organizations to reflect the concerns of consumers in the North based on their precautionary attitude about sustainability of products made in the World. The lack of any multilateral order in this new regulation is creating a big cacophony of rules and developing a new regulatory war of the Global North against the Global South. The objective of this paper is to explore how these challenges are affecting the Tradinge System and how it can evolve to manage these new trends.

Bilateralism and regionalism: re-establishing the primacy of multilateralism a Latin American and Caribbean perspective

Includes bibliography

The Changing Nature of Multilateralism and Brazilian Foreign Policy

An important characteristic of the current international setting is the crisis of the structure in existence, rather than the emergence of a new order. The rise of new interests and demands, as well as the speed of the transformation make the current understanding of global governance more complex. Brazil, like other medium powers, has an interest in institutionalised multilateralism as a means of increasing its bargaining capacity and hindering the unilateralism of major powers, without being antagonistic to them. It is attempting to increase its weight in traditional international bodies, which provide the grounding for international legitimacy, as well as in new informal arrangements. While this strategy could lead to the establishment of a new hierarchy that brings in countries of growing relative importance, it has put the weight of regional integration into another perspective in Brazilian foreign policy.

Who Is in Love with Multilateralism? Treaty Commitment in the Post-Cold War Era

Since the end of the Cold War, multilateral treaties have again become a central vehicle for international cooperation. In this article, we study states’ commitment to 76 multilateral treaties concluded between 1990 and 2005. The article offers a systematic account of present-day multilateral treaty-making efforts and asks what explains variation in states’ participation as witnessed in the act of treaty ratification.We test existing explanations and provide a novel argument that accounts for the strong participation of new European democracies in multilateral treaties. We find that regime type and being part of the European Union (EU) strongly affect treaty ratification. New EU democracies, in particular, are much more likely to ratify multilateral treaties than are other new democracies.

The Hidden World of Multilateralism? Treaty Commitments of Newly Democratized States in Europe

Why do new EU democracies engage in multilateralism? The dominant explanation proposes that new democracies use international treaties to lock in domestic reforms. This article offers a novel explanation as to why new EU democracies participate in multilateral treaties. We argue that ratifying a treaty serves three external signaling purposes (addressing recognition concerns; increasing strategic autonomy, and pleasing the EU). We test our argument through a mix of quantitative and qualitative methods. First, we apply event history analysis. Drawing on a new ratification data set comprising 76 multilateral treaties, we illustrate the prominent role of new EU democracies in multilateralism as compared to other new democracies. Second, to assess the importance of external signaling in the decision to ratify multilateral treaties, we examine parliamentary ratification debates in selected Central and Eastern European countries. Third, we compare parliamentary discussions across European and non-European new democracies to demonstrate the different motives driving their approaches toward multilateralism.

The Transatlantic Trade and Investment Partnership: A long hard road to multilateralism? EPC Commentary, 26 September 2014

The seventh round of the Transatlantic Trade and Investment Partnership (TTIP) negotiations between the European Union and the United States will take place in Washington on 29 September. If concluded successfully, the TTIP would become the world’s largest free trade pact. The EU and the US account for nearly half of the world’s GDP and 30% of world trade with exchanges of goods and services worth around €723 billion a year and €1.8 billion a day. The Partnership, unprecedented in its scope and ambition, has generated great expectations which will be hard to meet in reality. It could however have a beneficial effect on trade multilateralism, provided that it is the result of an open negotiating process.