Economic Ideas and North-South Preferential Trade Agreements in the Americas
Abstract
North-South Preferential Trade Agreements (PTAs) are an intensified version of the Uruguay round’s bargain, in which developing countries gain access to developed countries’ markets, expecting increase in inflows of foreign direct investment, but see their ‘policy space’ reduced (Shadlen, 2005). Focusing on United States’ PTAs in the Latin American region, this article seeks to answer why some Latin American countries found this bargain attractive while others did not. I argue that modern PTAs generate uncertainty over their costs and benefits, because there are not standardized tools to estimate the impact of the ‘trade-related’ provisions they include. As a result, policymakers turn to their general ideas about economic development, which assign different meanings to them, producing differing decisions. Empirically, it is shown that the argument complements previous explanations based on structural and societal variables.Keywords:
Preferential trade agreements, economic ideas, uncertainty, North-South relations, Latin AmericaReferences
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America’, in Abdelal, R.; Blyth, M. and Parsons, C. (eds.), Constructing the International Economy, Ithaca: Cornell University Press, 23-46.
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Garcé, A.; Lopez, C.; D’Avenia, L. and Villegas, B. (2016) Regímenes políticos de conocimiento. Evaluando un nuevo concepto a partir de la comparación de Chile y Uruguay, Montevideo: CSIC-UDELAR.
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George, A. and Bennett, A. (2005) Case Studies and Theory Development in the Social Sciences. Cambridge: MIT Press.
Goldstein, J. and Keohane, R. (1993) ‘Ideas and Foreign Policy: An analytical Framework’, in Goldstein, J. and Keohane, R. (eds.), Ideas and Foreign Policy. Beliefs, Institutions, and Political Change, Ithaca: Cornell University Press, 3-30.
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Haas, P. (1992) ‘Introduction: Epistemic Communities and International Policy Coordination’, International Organization 46(1): 1-35.
Hira, A. (1998) Ideas and Economic Policy in Latin America. Regional, National and Organizational Case Studies, Westport: Praeger Publishers.
Hoekman, B. and Kostecki, M. (2009) The Political Economy of the World Trading System: The WTO and Beyond, Oxford: Oxford University Press.
Horn, H.; Mavroidis, P. and Sapir, A. (2010) ‘Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements’, The World Economy, 33(11): 1565-1588.
Katada, S. and Solís, M. (2008) Cross Regional Trade Agreements. Understanding Permeated Regionalism in East Asia. Heidelberg: Springer.
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Manger, M. (2008) ‘International Investment Agreements and Service Markets: Locking in Market Failure?’ World Development, 36(11), 2456-2469.
Manger, M. (2012) ‘Preferential Agreements and Multilateralism’, in Heydon, K. and Woolcock, S. (eds), The Ashgate Research Companion to International Trade Policy, Farnham: Ashgate Publishing, 405-422.
Manger, M. and Shadlen, K. (2014) ‘Political Trade Dependence and North-South Trade Agreements’, International Studies Quarterly 58(1): 79-91.
Mansfield, E. and Milner, H. (2012) Votes, Vetoes, and the Political Economy of International Trade Agreements. Princeton: Princeton University Press.
Maxfield, S. (2003) ‘The Dynamics of State–Business Relations in the Formulation of Latin American Trade’, in Aggarwal, V.; Espach, R. and Tulchin, J. (eds.), The Strategic Dynamics of Latin American Trade, Stanford: Stanford University Press, 59-82.
Milner, H. and Judkins, B. (2004) ‘Partisanship, Trade Policy and Globalization: Is There a Left–Right Divide on Trade Policy?’, International Studies Quarterly 48(1): 95-119.
Montecinos, V. (2009) ‘Economics: the Chilean story’, in Montecinos, V. and Markoff, J. (eds.), Economists in the Americas, Cheltenham: Edward Elgar.
Moreno, M. (2010) ‘Think tanks en Chile: Estilos y prácticas tecnocráticas en la formación de políticas’, Enfoques 8(12): 103-125.
Ostry, S. (2002) ‘The Uruguay Round North-South Grand Bargain: Implications for future negotiations’, in Kennedy, D. and Southwick, J. (eds.), The Political Economy of International Trade Law, Cambridge: Cambridge University Press, 285-300.
Panizza, F. (2008) ‘Economic Constraints and Strategic Choices: The Case of the Frente Amplio of Uruguay’s First Year in Office’, Bulletin of Latin American Research 27(2): 176-196.
Peinhardt, C.and Allee, T. (2012) ‘Failure to Deliver: the Investment Effects of US Preferential Economic Agreements’, The World Economy 35(6): 757-783.
Porras, J. (2003) La estrategia chilena de acuerdos comerciales: Un análisis político, Santiago: CEPAL.
Porzecanski, R. (2010) No voy en tren. Uruguay y las perspectivas de un Tratado de Libre Comercio con Estados Unidos (2000-2010), Montevideo: Random House Mondadori.
Quijano, J. (ed,) (2006) Aspectos de la inserción internacional del Uruguay: análisis y reflexiones, Montevideo: Presidencia de la República-OPP-COMISEC.
Quiliconi, C. (2014) ‘Competitive Diffusion of Trade Agreements in Latin America’, International Studies Review 16(2), 240-251.
Roberts, C. and Heydon, K. (2012) ‘Trade in Services’, in Heydon, K. and Woolcock, S. (eds), The Ashgate Research Companion to International Trade Policy, Farnham: Ashgate Publishing, 167-185.
Rodrik, D. (2014) ‘When Ideas Trump Interests: Preferences, Worldviews, and Policy Innovations’, Journal of Economic Perspectives 28(1): 189-208.
Rojas, F. (2015) Ideas y política exterior. El rol de las comunidades epistémicas en la participación de Chile en la Alianza del Pacífico, Tesis de maestría en ciencia política, Santiago: Universidad de Chile.
Rosales, O. (2003) ‘Chile’s Multidimensional Trade Policy’, in Aggarwal, V.; Espach, R. and Tulchin, J.(eds.), The Strategic Dynamics of Latin American Trade, Stanford: Stanford University Press, 189-212.
Rosales, O. (n.d) Tratados de libre comercio con la Unión Europea y Estados Unidos: Nuevas bases para el desarrollo. Unknown publisher. Retrieved from http://www.u.cursos.cl/ingenieria/2012/1/IN70Z/material_docente/bajar?id_material=432135
Ryan-Collins, L. (2009) ‘Power and choice in international trade: How power imbalances constrain the South’s choices on free trade agreements, with a case study of Uruguay’, LSE DESTIN Working Paper No 09-97.
Saad-Filho, A. (2010) ‘Growth, poverty and inequality: From Washington Consensus to inclusive growth’, DESA Working Paper No 100.
Salazar-Xirinachs, J. (2003) ‘The Proliferation of Regional Trade Agreements in the Americas: An Assessment of Key Issues’, in Aggarwal, V.; Espach, R. and Tulchin, J. (eds.), The Strategic Dynamics of Latin American Trade, Stanford: Stanford University Press, 116-157.
Sánchez-Ancochea, D. (2008) ‘State and Society: The Political Economy of DR-CAFTA in Costa Rica, the Dominican Republic, and El Salvador’, in Sánchez-Ancochea, D. and Shadlen, K. (eds.), The Political Economy of Hemispheric Integration, New York: Palgavre Macmillan, 171-200.
Schneider, B. (2004) Business Politics and the State in Twentieth-Century Latin America, Cambridge: Cambridge University Press.
Schonhardt-Bailey, C. (1991) ‘Lessons in Lobbying for Free Trade in 19th-century in Britain: to Concentrate or Not’, American Political Science Review 85(1): 37-58.
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