Emma Mawdsley, University of Cambridge

• Emerging Powers as development actors; how the BRICS are changing the international aid industry

• 6-7.30pm, Wednesday 13th February

• Birkbeck College, 30 Russell Sq, Room 101

Regionalism: the rise of regional trading blocs?

• Protectionism and preferential/regional trading arrangements

• Stepping stone or stumbling block? J. Bhagwati… (or… Kostecki’s ‘swamp’?)

• Typology of RTAs

Issues:

• Spaghetti or soup? Regionalism or Multilateralism?

• GATT/WTO; MFN?

• Trade theory – Customs Unions

• GATT, Article 24

Protectionism and preferential/regional trading arrangements

•• Preferential trading ‘clubs’ (imperial, commonwealth,

ACP)• Free Trade Area / Association (EFTA, NAFTA)

retain individual external tariffs• Customs Union: FTA + common external tariff

CET (EEC)• Common Market: CU + free movement of factors of

production (EC)• Economic Union (Benelux, EMU), currency, policies

Customs Union Theory

• J. Viner 1950

• Regions stumbling block/barrier to free trade?

• trade creation vs trade diversion example on hand-out (pdf, Moodle)

• static gains vs dynamic gains

Protectionism and preferential/regional trading arrangements

•• Preferential trading ‘clubs’ (imperial, commonwealth,

ACP)• Free Trade Area / Association (EFTA, NAFTA)

retain individual external tariffs• Customs Union: FTA + common external tariff

CET (EEC)• Common Market: CU + free movement of factors of

production (EC)• Economic Union (Benelux, EMU), currency, policies

Debates over trade blocks

• See FT diagram…

• Relations between regions …

• Proliferation of RTAs & WTO

• The role of companies in regionalisation debates (Cox in F&L)

Regionalism vs multilateralism

1 Who benefits? Aggregate vs welfare/marginal2. Market driven or politically driven?3. Inevitable slide to deeper integration?

descriptive or prescriptive?

economic dynamic (MNCs & FDI bind regions?)

4. Is political impetus due to: • desire for internal cohesion, or desire for external leverage?

5. A shift in US (and other OECD?) policy towards bilateralism? - South Korean examples