Preferential Trade Agreement and Third World Economies - Research Proposal Example

School: PREFERENTIAL TRADE AGREEMENT AND THIRD WORLD ECONOMIES Lecturer: Using preferential trade agreements (PTA) to maximize the benefits of regional integration efforts of third world economies Background to the Study The World Trade Organisation (WTO) has always remained an important body bringing about trade liberalisation and the freedom of movement of goods and services across international borders (Moonhawk, 2010). As a way of creating level playing field, the WTO has used various principles of fair trade that ensured that member countries deal with each other fairly. This notwithstanding, Hans-Dieter et al (2006) noted that because various members countries are entitled to their sovereignty rights, the WTO has not had a total mandate to forcing members to enter into trade agreement that they find unbeneficial to their economic growth. One of the major departures from what may be called a normal trade relations principle by the WTO where members are expected to apply equal tariffs to import from other members is the use preferential trade agreements (National Council for Science and Environment, 2005). Jacint, Levi-Faur and Fernandez (2011) has explained preferential trade agreement (PTA) to be a trading bloc that is used to offer preferential rather than generalised access to international trade for participating countries. The preferences come in various forms including reduction in tariffs. Since the popularisation of PTA, the WTO has come to accept the principle and has a database of over 1000 negotiated trade agreements since 1945. Basing on WTO database on PTAs, Clyde (2007) lamented on how third world economies have not adequately taken advantage of this new era of trade liberalisation to expand their economies and alleviate poverty. Purpose of the study As PTA offers relatively favourable conditions and terms of trade, the researcher posits that PTA could be an important tool for maximising regional integration efforts. In the light of this, the purpose of the proposed study is to identify ways in which PTAs could be used to fast track regional integration efforts by third world economies so as to open favourable trade benefits for these countries. Research Questions 1. How can preferential trade agreements be used as instruments for achieving regional integration for third world economies? 2. In what ways can regional integration be used as a key for promoting economic growth and poverty alleviation in third world economies? 3. How can third world economies ensure fairness of trade in agreeing to preferential trade agreements with developed economies? Scope and uniqueness of study from existing research From the research questions posed above, it would be noted that the study will have a central theme of economic growth among third world economies. To achieve this, three major premises or variables shall be investigated as part of the scope of the study. These premises and the theme that together form the scope of the study have been demonstrated in the diagram below. What makes the research questions and the scope of the study unique is that it takes a spiral and holistic approach to the theme of economic growth in 3rd world economies. By spiral, reference is being made to the fact that the eventual goal of economic growth will be approached from a systematic order where one thing must lead to the other in order to bring the needed change. By holistic also, reference is being made to the fact that the research will not only look at what needs to be done but what needs to be avoided. By this, all forms of unfair trade agreements that have only taken advantage of third world economies will be exposed. The rationale for such a spiral and holistic approach is that Martin, Marchetti and Lim (2007) criticised existing approaches to economic growth in third world economies as being haphazard and lacking systematic plan that recognises barriers that must be overcome before growth can be achieved. Bridging gaps in literature The proposed study will be conducted in a manner that departs from existing literature so as to make the topic different from others. The study will therefore seek to bridge two major gaps in literature. These two are answering the questions of “why” and “how”. Throughout literature, one major trend that has been found is that most researchers seek to find out “what” preferential trade agreement is and “what” has been done with it since the 1940s. What is particularly missing is the question of why what has been done has been done and why most third world economies have been marginalised according WTO database (Schropp, 2010). Based on the research questions set, the study will delve into why third world economies have not taken maximum benefit of PTAs in creating regional integration. The researcher posits that it is only when the causes of the problem are known that the best solutions can be found. Secondly, the study will focus on how PTA can best be used among third world economies and how best third world economies can better liaise with developed economies to ensure fairness in trade pacts. Methodology The study will be conducted after the qualitative research approach. This means that the researcher shall emphasise on the exploration of data in order to understand given phenomena. The phenomena to be understood through the exploration of data are those that are outlined in the research questions as economic growth for third world economies through the creation of regional integration from preferential trade agreement. In line with the qualitative research method, the researcher shall use a multi-country case study that focuses on mainly on third world economies. The case study research design shall offer the researcher the opportunity of collecting primary data from an identified research setting. There will also be the use of secondary data from databases such as those of WTO, World Bank and International Monetary Fund. By combining these secondary data with primary data, the study will become highly investigative, empirical and evidence based. The research setting targeted for the study is the Embassies and High Commissions of 10 third world economies. Within this setting, the researcher is going to use officers who are directly related to international relations for their respective countries. These people are going to form the population of the study and are estimated to be in excess of 200 people. As a case study, the researcher shall want to have closer emphasis on the research setting and so do not consider using all 200 people within the population. As result, a sample size shall be constructed using a purposive sampling method. The purposive sampling method shall be used to ensure that the very best of respondents who have access to the data required by the researcher shall be used. For each of the 10 countries, 1 respondent shall be selected, making up 10 people in the sample size. Data collection shall take place by the use of a structured interview. This means that the researcher shall prepare an interview guide, containing necessary questions on the research problem. These questions shall largely be an expanded version of the research question to know from the respondents, their opinion on PTA and how it can be utilised or has been utilised so far by their countries in achieving regional integration. The selection of an interview is part of strategies to ensure that data collection is qualitative and open ended. Data collection is expected to take place at the premises of the Embassies and High Commissions. Before data collection begins, the researcher shall seek permission from the various research settings. This will be done by the use of a consent form that explains the purpose of the study and the need for participants to be involved in the study. The consent form shall also explain in very vivid terms, measures to be put in place to ensure that the confidentiality and anonymity of respondents. Draft Table of Content CHAPTER ONE INTRODUCTION Background to the Study Research Problem Purpose of the Study Aim and Objective Research Questions Significance of the Study CHAPTER TWO LITERATURE REVIEW CHAPTER THREE METHODOLOGY Research Method Research Design Population and Sample Research Instrument Data Collection Procedure Ethical Consideration Data Analysis Plan CHAPTER FOUR RESULTS CHAPTER FIVE DISCUSSION CHAPTER SIX CONCLUSION Summary Conclusion Recommendations Proposed Bibliography 1. European Commission (2006). Global Europe – Competing in the world. A Contribution to EU’s growth and job strategy Communication from the Commission 2. European Commission (2002). Assisting developing countries to benefit from trade. Communication from the Commission to the Council and the European Parliament COM (2002) 513 3. European Commission (1995). European Community support to regional economic integration efforts among developing countries. Communication from the Commission COM (1995) 219 4. Laursen, F. ed. 2007. Comparative Regional Integration: Europe and beyond. Ashgate Publishing Ltd. 5. Mackie, J., S. Bilal, I. Ramdoo, H. Hohmeister, and T. Luckho. (2010). Joining Up Africa: Support to Regional Integration. ECDPM Discussion Paper 99. www.ecdpm.org/dp99 6. Mattli, W. ed. 1999. The Logic of Regional Integration: Europe and beyond. Cambridge University Press. 7. Messerlin. P. A. (2012), An EU development-friendly trade policy under a "Comatose Doha". 8. European Parliament, Directorate-General for External Policies, Policy Department. http://gem.sciencespo.fr/content/publications/pdf/Messerlin_EUdevelopmentFriendlyTradePolicy042012.pdf 9. UNECA (2006). Assessing Regional Integration in Africa II: Rationalizing Regional Economic Communities. Addis Ababa: United Nations Economic Commission for Africa. http://new.uneca.org/aria/aria2.aspx 10. World Bank (2012). Defragmenting Africa: Deepening regional trade integration in goods and services. Washington, D.C.: The World Bank. http://go.worldbank.org/MKK5U1Y2D0 11. Directive 2004/48/EC of the European Parliament and of the Council of 29 April 2004 on the enforcement of intellectual property rights, Official Journal, L 157, 30.4.2004. 12. Directive 2006/115/EC of the European Parliament and of the Council of 12 December 2006 on rental right and lending right and on certain rights related to copyright in the field of intellectual property (codified version), Official Journal L 376, 27.12.2006, p. 28–35. 13. Directive 2006/116/EC of the European Parliament and of the Council of 12 December 2006 on the term of protection of copyright and certain related rights (codified version), Official Journal, L 372, 27.12.2006, p. 12–18. 14. Mayne, Ruth: US bullying on drug patents: One year after Doha, Oxfam Briefing Paper 33, 2002. 15. Medecins sans Frontieres (MSF): Open Letter concerning IPRs and Access to Medicines in the USCAFTA addressing the use of TRIPs-plus clauses, sent to USTR Robert Zoellick, on 15 October 2003. 16. Roffe, Pedro: Bilateral agreements and a TRIPS-plus world: the Chile-USA Free Trade Agreement, Quakers United Nations Office, Geneva, 2004. 17. Vivas-Eugui, David: Regional and bilateral agreements and a TRIPS-plus world: the Free Trade Area of the Americas (FTAA). 18. WTO: Implementation of paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health, General Council Decision of August 30, 2003, WT/L/540. 19. Allee Todd 2005. “The „Hidden‟ Impact of the World Trade Organization on the Reduction of Trade Conflict,” Paper presented at the Midwest Political Science Association Conference, Chicago, Illinois. 20. Allee Todd and Clint Peinhardt 2010. “The Least BIT Rational: An Empirical Test of the „Rational Design‟ of Investment Treaties,” unpublished manuscript. 21. Alter Karen and Sophie Meunier 2007. “The Politics of International Regime Complexity,” Roberta Buffett Center for International and Comparative Studies Working Paper No. 3. 22. Baccini Leonardo 2009. “Explaining Formation and Design of EU Trade Agreements: The Role of Transparency and Flexibility,” European Union Politics 11(2):195-217. 23. Baccini Leonardo 2011. “Democratization and Trade Policy: An Empirical Analysis of Developing Countries,” European Journal of International Relations, forthcoming. 24. Busch Marc 2007. “Overlapping Institutions, Forum Shopping, and Dispute Settlement in International Trade,” International Organization 61(4):735-61. 25. Büthe Tim and Helen Milner 2008. “The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?,” American Journal of Political Science 52(4):741-62. 26. Chase Kerry 2005. Trading Blocs: States, Firms, and Regions in the World Economy. Ann Arbor: University of Michigan Press. 27. Cukierman Alex, Stephan Webb and Bilin Neyapti 1992. “Measuring the Independence of the Central Banks and Its Effects on Policy Outcomes,” The World Bank Economic Review 6(2):353-98. 28. Davis Christina 2006. “The Politics of Forum Choice for Trade Disputes: Evidence from U.S. Trade Policy,” Paper presented at the Annual Meeting of the American Political Science Association, Philadelphia. 29. Dupont Cédric and Manfred Elsig 2011. “Border Politics and International Regulation: A Framework of Analysis through the Prism of the World Trade Organization,” unpublished manuscript. 30. Dür Andreas 2007. “EU Trade Policy as Protection for Exporters: The Agreements with Mexico and Chile,” Journal of Common Market Studies 45(4):833-55. 31. Estevadeordal Antoni and Kati Suominen 2007. “Sequencing Regional Trade Integration and Cooperation Agreements: Describing a New Dataset for a New Research Agenda,” Economie Internationale 109:53-82. 32. Ethier Wilfred 1998. “The New Regionalism,” The Economic Journal 108(3):1149-61. 33. Fernandez Raquel and Jonathan Portes 1998. “Returns to Regionalism: An Analysis of Nontraditional Gains from Regional Trade Agreements,” World Bank Economic Review 12(2):197-220. 34. Fink Carsten and Martin Molinuevo 2008. “East Asian Preferential Trade Agreements in Services: Liberalization Content and WTO Rules,” World Trade Review 7(4):641-73. 35. Gleditsch Kristian and Michael Ward 2008. “Diffusion and the Spread of Democratic Institutions,” in Frank Dobbin, Geoffrey Garrett and Beth Simmons (eds.), The Global Diffusion of Markets and Democracy, Cambridge: Cambridge University Press. 36. Hufbauer Gary Clyde 2007. “Preferential Trade Arrangements in the World Economy: Two New Databases and Seven Questions.” Bern: World Trade Institute. 37. Jordana Jacint, David Levi-Faur and Xavier Fernandez 2011. “The Global Diffusion of Regulatory Agencies & the Restructuring of the State,” Comparative Political Studies, forthcoming. 38. Kim Moonhawk 2010. “Bringing Trade Liberalization Back into Trade Agreements: Explaining the Variation in U.S. Preferential Trade Agreements,” Paper presented at the Workshop on The Politics of Preferential Trade Agreements: Theory, Measurement, and Empirical Applications, Princeton University, April 30-May 1. 39. Klingemann Hans-Dieter, Andrea Volkens, Ian Budge, Judith Bara and Michael McDonald 2006. Mapping Policy Preferences II: Parties, Electorates and Governments in Eastern Europe and the OECD 1990-2003. Oxford: Oxford University Press. 40. Roy Martin, Juan Marchetti and Hoe Lim 2007. “Services Liberalization in the New Generation of Preferential Trade Agreements (PTAs): How Much Further than the GATS?,” World Trade Review 6(2):155-92. 41. Schropp Simon 2010. Trade Policy Flexibility and Enforcement in the World Trade Organization: A Law and Economics Analysis. Cambridge: Cambridge University Press. References Clyde H. G (2007). Preferential Trade Arrangements in the World Economy: Two New Databases and Seven Questions. Bern: World Trade Institute. Jacint J., Levi-Faur D. and Fernandez X (2011). The Global Diffusion of Regulatory Agencies & the Restructuring of the State. Comparative Political Studies, 4(3); 34-53. Moonhawk K. (2010). “Bringing Trade Liberalization Back into Trade Agreements: Explaining the Variation in U.S. Preferential Trade Agreements,” Paper presented at the Workshop on The Politics of Preferential Trade Agreements: Theory, Measurement, and Empirical Applications, Princeton University, April 30-May 1. Hans-Dieter K., Volkens A., Budge I., Bara J. and McDonald M. (2006). Mapping Policy Preferences II: Parties, Electorates and Governments in Eastern Europe and the OECD 1990-2003. Oxford: Oxford University Press. National Council for Science and Environment (2005). CRS Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws. Order Code 97-905. Martin R., Marchetti J. and Lim H. (2007). Services Liberalization in the New Generation of Preferential Trade Agreements (PTAs): How Much Further than the GATS? World Trade Review 6(2):155-92. Schropp S. (2010). Trade Policy Flexibility and Enforcement in the World Trade Organization: A Law and Economics Analysis. Cambridge: Cambridge University Press. Read More