The Political Economy of the World Trading System: WTO and Beyond

Abstract

This book analyses the multilateral trading system's principles, rules, and procedures. It is not a legal text. It aims instead to provide an accessible (non‐technical) description of the rules of the game and a policy‐oriented economic assessment of the disciplines that have been negotiated by WTO members. The book provides a brief historical overview of the evolution of the trading system; the organizational structure and functions of the WTO; the dispute settlement and enforcement provisions; and the role of the WTO as a forum for negotiations, with special attention given to the importance of reciprocity. The bulk of the book deals with the rules on trade policies, including regional integration and contingent protection (anti‐dumping and safeguards), agriculture, services and intellectual property, and discusses the political economy rationale underlying them. The rules are summarized and their economic policy rationale assessed in a non‐technical manner. The final part of the book discusses the evolving role of developing countries and economies in transition and the issues that are likely to be on the negotiating agenda for some time to come, including competition (anti‐trust) policy, labour standards, trade facilitation, investment, and environmental policies. An Annex summarizes the economics of major trade policy instruments and many of the issues discussed in the book.