Social Standards in EU and US Trade Agreements

This book examines the causes and consequences of social standards in US and EU preferential trade agreements (PTAs) using principal-agent theory. It argues that the level of institutional insulation of trade policy executives from interest groups and legislators determines the design of social standards, with the EU having a softer approach due to high insulation and the US having a stricter approach due to low insulation.

Format: Paperback / softback
Length: 176 pages
Publication date: 13 June 2022
Publisher: Taylor & Francis Ltd

This comprehensive book delves into the intricate dynamics of social standards within US and EU preferential trade agreements (PTAs). PTAs,as the prevailing framework of the global trading system,have gained increasing prominence among both developed and developing countries,emphasizing the inclusion of labor and environmental concerns to prevent a race to the bottom in social regulation and counter-protectionism. By employing the principal-agent theory,Postnikov explores the underlying factors that determine the differing social standards observed in US PTAs compared to those signed by the EU.

He argues that the level of institutional insulation of trade policy executives from interest groups and legislators plays a crucial role in shaping the design of social standards. In the EU,where institutional insulation is high,social standards align with the normative preferences of the European Commission,resulting in a more lenient approach. Conversely,in the US,where such insulation is relatively low,social standards are driven by interest groups and legislators under their control,leading to a stricter approach.

Through a detailed analysis of original data collected in various cities,including Brussels,Washington,Santiago,Bogota,and Seoul,Postnikov substantiates his argument and demonstrates that both approaches can be effective,although they operate through distinct causal mechanisms. This book holds immense value for scholars and students engaged in the fields of international political economy and EU and US trade policy. It provides a valuable contribution to our understanding of the complex interplay between trade agreements,social standards,and the broader political economy of the global arena.

Weight: 330g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032336367