Week 2

Question 1

Shifting weights in the economic structure

Answer 1

• The rise of a new category: emerging markets or emerging economies
• The BRIC phenomenon
• Efforts at coordination and institutionalization

Question 2

What further structural shifts to expect

Answer 2

• Vulnerability of global value chains
• Trend to reduce economic dependency amidst security concerns
• Risk of fragmentation of world economy

Question 3

Legislation

Answer 3

obligation, precision and delegation.”

Question 4

How is WTO highly legalized

Answer 4

• Agreements are binding
• Provisions are elaborate and specific
• Authoritative interpretation of rules delegated to dispute settlement mechanism

Question 5

Where do the rules come from

Answer 5

Political dynamics during negotiations

Question 6

Contestation over dispute settlement mechanism

Answer 6

• US discontent over growing number of cases decided in favor for emerging powers
• US blocks new appointments to appellate body
• Not functioning since December 2019

Question 7

EU concept paper on WTO reform

Answer 7

• More transparency and more restrictions on subsidies
• Better rules of state-owned enterprises
• Address barriers to services and investment, in particular related to forced technology transfer
• Graduation from developing country status
• Nominations for appellate body

Question 8

China’s proposal on WTO reform

Answer 8

• Nomination for appellate body
• Address unilateral measures
• Rules on agricultural trade, especially subsidies in developed WTO members
• Trade remedies, rules on price-comparison (market economy status)
• Maintain privileges for developing countries
• Rules on e-commerce

Question 9

Strategic use of FTA’s

Answer 9

• Regional agreements as a means of pushing trade-related policies and regulations
• Forum or regime shifting:

Question 10

Forum or regime shifting

Answer 10

• Using a variety of fora, incl. at bilateral and regional level, to create threats and incentives for trading partners and promote one’s own preferences.
• Requires substantial resources to lead and coordinate parallel negotiations at different levels
• This has been a crucial strategy for advanced industrialized countries in pushing through TRIPS agreement in Uruguay round