World Trade and Local Public Interest: Trade Liberalization and National Regulatory Sovereignty

Trade liberalization has shifted to non-tariff barriers, with regional economic integrations and federal systems based on the dichotomy of free trade and local public interest. This volume explores central issues in regional economic integrations from a comparative perspective, providing a general economic analysis of the costs and benefits of trade liberalization and the role and function of normative values in commercial policy. It also addresses key issues in investment law.

Format: Paperback / softback
Length: 269 pages
Publication date: 16 July 2021
Publisher: Springer Nature Switzerland AG

Since the end of the GATT in 1947, trade liberalization has significantly impacted international economic relations. The past few decades have witnessed a notable change in the focus of this process: multilateralism appears to have reached its limits, giving way to regionalism, and the focus of trade liberalization has shifted to non-tariff barriers. While these developments have garnered significant attention, exploring them from comparative perspectives has been largely neglected. Trading systems, including the WTO, regional economic integrations, and federal systems, are all based on the same dichotomy of free trade and local public interest. They generally prohibit the constituent parties (states) from restricting trade but exempt them from this limitation if the restriction is warranted by a legitimate local end.

The purpose of this volume is to contribute to filling the above-mentioned research gap by examining central issues in regional economic integrations from a comparative perspective. It provides a comprehensive economic analysis of the costs and benefits of trade liberalization and the role and function of normative values in commercial policy. This is followed by a comparative analysis of the approaches used in various regional economic integrations (in North America, Europe, and Latin America) and federal markets (the United States, Australia, and India) regarding the balance between free trade and local public interest. Key issues in investment law, one of the most contentious elements of next-generation free trade agreements, are also addressed.

Regional economic integrations have gained prominence in recent years as countries seek to deepen economic ties and promote economic growth. These integrations involve the cooperation of multiple countries within a region to facilitate trade, investment, and economic cooperation. There are several regional economic integrations in existence, including the North American Free Trade Agreement (NAFTA), the European Union (EU), and the Association of South East Asian Nations (ASEAN).

One of the key challenges facing regional economic integrations is the balance between free trade and local public interest. While free trade promotes economic growth and increases competition, it can also have negative impacts on local industries and workers. For example, if a country imports goods at a lower price than its domestic producers, it can lead to job losses and reduced wages for local workers. To address this challenge, regional economic integrations often include provisions that protect local industries and workers. For example, NAFTA includes provisions that require countries to maintain certain labor standards and environmental regulations to protect local industries.

Another key issue in regional economic integrations is investment law. Investment law governs the rules and regulations that govern foreign investment in a country. It can impact the balance between free trade and local public interest by determining the level of protection that foreign investors receive. For example, if a country has strict investment laws that limit the rights of foreign investors, it can discourage foreign investment and limit economic growth. On the other hand, if a country has open investment laws that promote foreign investment, it can attract more investment and promote economic growth.

Regional economic integrations also face challenges related to governance and decision-making. As countries within a region cooperate more closely, they need to develop mechanisms for governance and decision-making that are effective and efficient. This can include mechanisms for dispute resolution and dispute prevention, as well as mechanisms for ensuring that decisions are made in the best interests of all countries involved.

In conclusion, trade liberalization has shaped international economic relations since the end of the GATT in 1947. The past few decades have witnessed a significant shift in the focus of this process, with multilateralism giving way to regionalism and the focus of trade liberalization shifting to non-tariff barriers. While these developments have attracted considerable attention, exploring them from comparative perspectives has been largely neglected. Regional economic integrations have gained prominence in recent years as countries seek to deepen economic ties and promote economic growth. These integrations involve the cooperation of multiple countries within a region to facilitate trade, investment, and economic cooperation. To address the challenges facing regional economic integrations, it is important to balance free trade with local public interest and to develop effective mechanisms for governance and decision-making. By doing so, regional economic integrations can continue to play an important role in promoting economic growth and prosperity in the world.

Weight: 427g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030419226
Edition number: 1st ed. 2020