Aid, Trade and Development: The Future of Globalization, Second Edition

This volume presents a broad sweep of modern economic history underpinning aid, trade, development and globalization in the last half century and the salient challenges facing the global community today. The author draws on his long years as an academic and development practitioner to recommend what needs to be done to cope with the backsliding of the fight against global poverty, fractured geopolitics and the threats to the multilateral economic order. The new, revised edition analyses how unilateralism, rising protectionism and the Covid-19 pandemic seriously threaten global sustainable development. It concludes with recommendations on the policy changes needed to make globalization more equitable and development more sustainable. This book will be of interest to researchers and students of economic development and economic history, as well as all those concerned about global inequality and sustainability. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.

Empirical Evolution of the WTO Security Exceptions Clause and China's Discourse

Influenced in recent years by multiple factors in recent years, such as antiglobalization, the return of the state and the major public health crisis caused by the COVID-19 pandemic, the international community has entered a nontraditional security era. In the name of protecting nontraditional security, many countries have actively and frequently adopted abnormal regulatory measures and have attempted to seek exemptions from obligations through article XXI of the GATT or article 73 of the TRIPS (Security Exceptions). A series of economic and trade mega-agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the U.S.-Mexico-Canada Agreement, the EU-Japan Economic Partnership Agreement (USMCA), the Investment Cooperation and Facilitation Treaty between the Federative Republic of Brazil and the Republic of India (Brazil-India BIT), and the Regional Comprehensive Economic Partnership (RCEP), that have been concluded since 2018 cover more nontraditional security in their security exceptions clauses or essential security interests clauses, possibly leading to more countries expanding the interpretation and application of the security exceptions clause in future practice. The circular promotion of the security exceptions clause in its evolution and textual development may break the overall balance of existing WTO rules and exacerbate further imbalances. This chapter specifically studies the interpretation and logical evolution of security exceptions clauses in the DS512 and DS567, providing an empirical basis for the justification of disputed measures through the invocation of article XXI of the GATT. It is recommended that under the guidance of an overall national security concept, China should consider its national conditions, taking both its present and its long-term interests into account. Regarding China's security laws, policies and practices, it is recommended that the double-edged sword function of the security exceptions clause should be focused on foreign contrasts. That is, the security exceptions clause should be regarded as a defensive clause in terms of its position and content design and should be invoked under a high level of self-restraint in dispute settlement to avoid excessive strengthening or even alienation of national security during execution and to provide institutional support for a more balanced Chinese discourse in the establishment of a new generation of international economic rules. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023.

Recovery from International Trade Crisis

Since the beginning of COVID-19, the trade crisis has raised many important questions about whether globalization and international trade are dead. It further raised questions whether the persistent trade deficit is an obstacle to recovery and the persistent trade imbalance nullifies or impairs the benefits of international trade. International trade is a privilege given by sovereign countries. Any trade which deprives people's right to livelihood is against the norms of human rights. Should such types of international trade be discouraged by multilateral trade agreements? This article examines what improvements are required within multilateral trade agreements. This article has been divided into five subchapters: (I) Introduction, (II) Impact of COVID-19 on international trade and its legal implications, (III) The new deal to recovery and subject of international trade, (IV) Trade imbalance as an obstacle to recovery, (V) Impact of COVID-19 on globalization, and (VI) Conclusion. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2023.

Fit for purpose? The patents regime, the Fourth Industrial Revolution, and sustainable development

This article uses data from several publicly available databases to show that the distribution of intellectual property for frontier technologies, including those useful for sustainable development, is very highly skewed in favor of a handful of developed countries. The intellectual property rights (IPR) regime as it exists does not optimize the global flow of technology and know-how for the attainment of the sustainable development goals and is in need of updating. Some features of the Fourth Industrial Revolution imply that the current system of patents is even more in need of reform than before. COVID-19 vaccines and therapies and the vast inequality in access to these has highlighted the costs of inaction. We recommend several policy changes for the international IPR regime. Broadly, these fall into three categories: allowing greater flexibility for developing countries, reassessing the appropriateness of patents for technologies that may be considered public goods, and closing loopholes that allow for unreasonable intellectual property protections.

FISHERIES

Fisheries policy provides fundamental insights for trade lawyers. The scholar and practitioner of international trade law learns from a study of the utilization and trade of marine living resources about common dilemmas: the pressure that trade places on the sustainability of production;the constraints on consumers seeking to discriminate on the basis of ethical sensibilities;the difficulties of norms and institutions interacting with other regimes of international law;and the complexity of overlapping regional and multilateral trade governance, comprising World Trade Organization and regional trade agreements. The COVID19 pandemic adds further challenges. This chapter investigates the dilemmas in three dominant areas: (i) the negotiation of new trade rules, particularly within subsidy disciplines;(ii) the implementation of trade measures on fisheries, such as import bans for fish implicated in ‘illegal, unreported and unregulated' (IUU) fishing;and (iii) the settlement of trade disputes. Drawing on treaties, case-law and institutional developments, this chapter assesses global and regional regulation of fish production and consumption, including new developments in the blue economy, and provides insight into the role of trade law in modern international governance. © Oxford University Press 2022. All rights reserved.

Small is beautiful and important: economies and firms trading in digital services

Although many firms operate on global digital platforms, small countries and firms also play an essential role at the national level, especially during crises and the slowdown in globalization. This research investigates trade patterns in digital services at the country and firm level and identifies challenges in this area in providing new information and tools to startup mentors and policymakers, who need more evidence for national authorities to develop mentorship and digital programmes. The study also contributes to transaction cost theory, explaining how it is possible to reduce transaction costs. The methodology involves using quantitative and experimental methods, logistic regression for firms and correspondence analysis for countries. The WTO dataset was used to visualise trade in services data and to interpret clusters of digitalised countries. Interestingly, Estonia stands apart from other post-socialist countries in terms of digital services exports, being among smaller countries and hosting the highest concentration of startups per capita. The firmlevel analysis revealed that firms trading in digital services differ from others – being smaller, more focused on exports and more often controlled by non-residents. The study encourages investments in small countries and small firms that trade successfully in digital services.

Food export restrictions during the COVID-19 pandemic: Real and potential effects on food security

The purpose of the article is to review and critique the implementation of food export restrictions in times of crisis in addressing food security challenges. The methodological approach was to undertake a narrative literature review to outline the challenge of ensuring food security in times of crisis. We explored the problem of food export restrictions introduced in 2007-2008 and 2020 and assessed the changes in the state of food security at the national level during the COVID-19 pandemic using the Global Food Security Index (GFSI). The trade restrictions imposed in 2020 did not play a key role in the increases in international food prices as was the case during 2007-2008 and 2010-2011. The analysis of GFSI values questions whether food export restrictions have been sufficient measures given the size of the food security challenge during the pandemic, and this is a new contribution of this research. The issue of food export restrictions is underregulated in the World Trade Organization (WTO), and this needs to be urgently addressed by another institution, e.g., Food and Agriculture Organization (FAO), given that the war in Ukraine is endangering food security across the world.

China and Multilateral IP Governance

This chapter focuses on China's multilateral intellectual property engagement, and WIPO and WTO are the key forums of this analysis. The case of China's engagement with WIPO demonstrates various dimensions of reciprocity. In China's engagement with the WTO, it analyses China's early attempt at agenda-setting in its first and only proposal on IP in standardisation and China's position and involvement in the recent COVID-19-related IP waiver negotiations at the TRIPS Council. China's multilateral IP engagement reveals that it has taken the strategy of multi-forum engagement in navigating international IP regime complexity. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

The TRIPS Waiver Decision at the World Trade Organization: Too Little Too Late!

The recently adopted Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver decision at the World Trade Organization is a grossly inadequate and insincere response to the COVID-19 pandemic. This paper criticizes the TRIPS waiver for being faulty on several fronts such as: excluding COVID-19 diagnostics and therapeutics from its fold and focusing only on COVID-19 vaccines;restricting its coverage to only patents and leaving out other intellectual property rights;excluding developed countries that possess manufacturing and technological capability from being eligible exporters of COVID-19 vaccines;and its perplexing silence on the transfer of technology. It will have negligible impact on fighting the pandemic, sets an enfeebled example for the future, and is a classic case of too little too late. Copyright © The Author(s), 2022. Published by Cambridge University Press on behalf of the Asian Society of International Law.

Equal Access to Vaccines: Exposing the Limits of International Human Rights Law?

The Covid-19 pandemic has caused millions of deaths since 2020. The virus' capacity to produce variants that evade immunity has meant that the best way to prevent further deaths is through ensuring that as many people as possible worldwide are vaccinated. Production of vaccines is reaching the point where it could meet global demand, if vaccines were equitably distributed. So far, however, vaccination rates have been highest in the developed world, and people in developing countries, especially Africa, remain woefully under-vaccinated. This article considers whether international human rights law can contribute to ensuring equal access to vaccines. It concludes that although the provisions of the International Covenant on Economic, Social and Cultural Rights would support equal access to vaccines, there are various reasons why international human rights law may not be effective in securing equal access to vaccines. These include not only the state-centric approach of international human rights law and its weak enforcement mechanisms, but also the strong international law protection for patents under the World Trade Organization (WTO)'s Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs). Nevertheless, important steps have been taken by new institutions of global health governance, such as the Global Agency for Access to Vaccines (GAVI) and Coalition for Epidemic Preparedness Innovations (CEPI), to ensure equal access to vaccines but much work still needs to be done. The chapter concludes that the Covid-19 pandemic has illustrated how inequality between countries, as well as within them, can be exacerbated by a global health crisis. © The several contributors 2022. All rights reserved.

SACU and Trade Facilitation: A Post-Covid Pandemic Legal Analysis for Improved Efficiency

The Southern African Customs Union (SACU) prioritizes trade facilitation as one of its primary objectives in its founding Agreement (Article 2 (a)), implementing programmes to increase trade through expedited movement, and release and clearance of goods in the region. The oldest Customs Union in the world anticipated increased trade-flows following the entry into force and implementation of the progressive World Trade Organization's Trade Facilitation Agreement (WTO TFA), and operation of the African Continental Free Trade Agreement (AfCFTA). Its aspirations, however, were dampened by the Covid-19 pandemic, which presented supply side challenges and slowed customs processes. Members introduced critical legislative measures to reduce or stop the spread of coronavirus disease (COVID-19) and initiate needed trade-facilitations interventions at a national and regional level. SACU also played a role in this regard, albeit a minimal one, through Council decisions. This raises the question of the SACU's effectiveness, or ineffectiveness, its relevance in its functions, institutional structural readiness to address pandemics and regional emergencies, and future role it will play in this regard. This article examines trade-facilitation related responses from the institution following the outbreak of the pandemic, and adequacies/inadequacies of the said measures. The article, lastly, proposes trade-facilitation related approaches the SACU could adopt to improve efficiency for future pandemics and other global emergencies © 2023 Kluwer Law International BV, The Netherlands

Unpacking the Black Box of China's State Capitalism

Much ink has been splashed on the ideological, conceptual, and practical challenges that China's state capitalism has posed to global trade rules. There is a growing perception that the current international trade rules are neither conceptually coherent nor practically effective in tackling China's state capitalism. This perception has not only led to the emergence of new trade rules in regional trade agreements, but also culminated in the US-China trade war, only further aggravated by the Covid-19 pandemic. This Article contributes to the debate of what trade rules may be needed to counteract China's state capitalism by unpacking the black box of China's state capitalism. Based on an analysis of the nature of China's state capitalism, this Article provides a preliminary evaluation of current trade rules taken to counteract China's state capitalism, in particular the new rules in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and explain why they are unlikely to be successful.

The EU Trade Agenda—Rules on State Intervention in the Market

This Article critically analyzes the main legal and policy issues that are likely to determine the development of the EU's trade policy concerning rules on State intervention in the market, specifically on subsidies and SOEs. The article assesses the aforementioned issue especially within the context of the new trade strategy entitled "An Open, Sustainable and Assertive Trade Policy” set out by the European Commission in February 2021, at the core of which stands the concept of strategic autonomy. The focus of our analysis is on key elements of the current EU competition and trade policies and normative initiatives, namely: the relaxation of the usual State aid regime under Articles 107 and 108 TFEU to give Member States more flexibility in supporting their economies and strengthen EU industrial policy;the likelihood of EU proposals resulting in any substantial change to international trade law on subsidies and SOEs at the multilateral (WTO) level;a systemic horizontal investigation into the relevant trade rules promoted by the EU in its most recent practice of PTAs;and, finally, the EU pursuing stronger protection of its companies with its recently announced new regulation on foreign subsidies, on the basis of which the European Commission can investigate foreign subsidies and impose remedies. Even though, at first sight, it may seem that the current evolution of the EU trade policy on these issues seems inconsistent, the Article argues that the unilateral, bilateral, and multilateral approaches are indeed strictly intertwined, and they reveal a significant shift in the most recent EU trade policy objective in relation to the role of State in the market.

The Covid 19 Exogenous Shock and the Crafting of New Multilateral Trade Rules on Subsidies and State Enterprises in the Post-Pandemic World

This Article discusses existing WTO rules on subsidies and state enterprises, relevant caselaw and reform prospects in light of key geopolitical developments and changes in the global economy emerging in the aftermath of the Covid-19 pandemic. Following a general introduction, the Article critically analyzes present WTO rules on industrial subsidies, focusing inter alia on the new problems raised by activist industrial policies pursued by global trading powers, foreign subsidization, the climate change shock and environmental exigencies. It then shifts attention to the application of WTO rules on subsidies to the state sector and the increasing demands for new international trade rules on non-subsidies measures to address the negative spillover effects on trade from government influence on state-owned enterprises (SOEs). With respect to each of these matters, the Article first clarifies the terms of the problem in relation to existing WTO rules and caselaw, and next examines the question of how, and to what extent, "deeper” free trade agreements (FTAs)—those that experts designate as models for WTO reforms on the matter—establish new rules that permit to adequately address the trade concerns raised by SOEs' commercial and financial activities. Based on this multi-layered analysis, the article concludes by examining prospects of reform of WTO rules on state interventionism.

Special Economic Zones in an Era of Multilateralism Decadence and Struggles for Post-Pandemic Economic Recovery: Perspectives from the Global South

Recent years have seen a proliferation of Special Economic Zones (SEZs) in developed and developing countries. Developed in Europe in its modern shape, most SEZs are located outside the continent today, notably in the developing world, where SEZs form part of these countries' export-oriented growth policy tools and overall economic development. At a period of growing unilateralism and the return of the State as an economic actor, this contribution seeks to tackle the rise of SEZ laws in the global south, with a particular focus on Africa. It will scrutinize the reasons for their establishment, the measures chosen to promote them, and the international ramifications in these respective regions and broadly on the global plane, notably at the WTO. With the entry into force of the African Continental Free Trade Area (AfCFTA) Agreement, African countries face challenges of multi-layered SEZ governance, which this contribution intends to address. These challenges also extend to the cross-regional trade agreements these countries conclude, individually and as a bloc. Since SEZs are often assimilated with a category of subsidies and are discriminatory trade measures, this contribution, in essence, investigates the extent to which current trade rules at multilateral and regional levels address these controversial aspects of SEZs.

The WTO After MC12: Negotiating multilateral trade in a time of COVID-19 and the war in Ukraine

This article offers a full-length examination of the World Trade Organization's (WTO's) 12th Ministerial Conference (MC12) held in Geneva between 12–17 June 2022. Its purpose is to assess critically the processes and outcomes of meeting and explore their significance for the future of multilateral trade and the WTO. The article begins with an exploration of the context in which MC12 took place, focusing on the role and effect of a series of geopolitical crises – including COVID-19 and the war in Ukraine – and enduring internal challenges, particularly in dispute settlement and the negotiating function. It then examines the dynamics of the conference before turning to each of the principal areas under negotiation during the meeting. Here the focus is on fisheries, e-commerce, agriculture, and the Trade Related Intellectual Property (TRIPs) waiver. Our argument is that although the outcome of the meeting represents something of a success – particularly in forging an agreement tackling harmful fisheries subsidies – significant challenges remain that threaten the long-term relevance of the organization and its capacity to deliver on its core mandate. © 2023 Kluwer Law International BV, The Netherlands.

Systemic Changes in the Politicization of the International Trade Relations and the Decline of the Multilateral Trading System

This Article contributes to the discussion about the development of international trade regulation of state interventionism by situating the tensions that exist about the future design of subsidies and state enterprises treaty regulation in the broader context of current systemic challenges to the multilateral trading system. While recent studies have explored the issues of subsidies and state-owned enterprises (SOEs) as one of the most significant in impact among the contemporary challenges to the WTO, there is certainly scope to discuss further such a problem from the broader point of view of the crisis of the multilateral trading system, its systemic challenges and the concomitant increasing politicization of international trade relations. To this end, this Article analyzes the interactions between the lasting decline of the WTO, growing political interferences with international trade flows and the prospects of reforming multilateral trade rules to address its systemic challenges and manage/mitigate newly central problems of the 21st century such as the Covid-19 Pandemic, climate change and the greening of economic production and international trade. The Article argues that existing WTO rules are not adequate to address these challenges and problems. It concludes that, like in the GATT era, it is only the spirit of pragmatism that may provide chances to find alternatives to growing frustration with negotiating inaction and, hence, to reform the system. However, the question remains whether it is possible to find an approach to imagine, remodel and craft multilateral rules that are sensitive to different economic, political, and social choices and able to rebalance the position of all members, large and small, rich and poor.

Making COVID-19 mRNA vaccines accessible: challenges resolved.

INTRODUCTION: The rapid spread of SARS-CoV2 infection allowed testing of mRNA vaccines that translate the target antigen, unlike introducing antigens in traditional vaccines. It proved safer and more effective and, as a chemical vaccine, much easier to develop and manufacture. AREAS COVERED: The science and technology behind the mRNA vaccines are pertinent to establishing low-cost manufacturing of reverse-engineered mRNA vaccines, as suggested by the WHO. A stepwise approach to establishing a compliant manufacturing facility, testing, supply chain, regulatory submissions, and intellectual property handling is presented. EXPERT OPINION: mRNA technology is more straightforward, and the cost of establishing a manufacturing facility is affordable, even in developing countries. The technology and supplies are widely available; however, based on experience, several misconceptions and misunderstandings about mRNA vaccines need to be removed, such as the regulatory and intellectual property issues that are resolved in this paper.

The Future of Multilateralism in the Post-pandemic World

This paper applies an endogenous institutionalist framework to understand the evolution of the rules-based international trading system since the end of World War II. We argue that the initial success of the General Agreement on Trade and Tariffs and re-enforcement that led to the formation of the WTO can be explained by three major factors: the hegemonic position of the US, the belief that international trade would foster prosperity and peace, and Cold War politics. However, declining US hegemony along with a shift in global comparative advantage in labor-intensive manufacturing led to a shift from multilateral towards preferential trade agreements since the 1990s. Today, the WTO faces several new challenges, including increasing geo-political competition between the US and China, increasing digitization of commerce, and disrupted supply chains following COVID-19. A functioning WTO that facilitates global economic re-integration remains crucial to ensure a strong recovery from the pandemic and continued long-term prosperity and stability of the global economy. © 2023 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

The End of the Golden Weather: New Zealand's Trade Policy During a Time of International Transition

The ‘golden weather' for New Zealand trade policy is well and truly over. Confronted by a new world trade transition—an era of increasing complexity characterised by a great unravelling of existing assumptions and a rules-based trading system that is fragmenting at worst and under severe strain at best—COVID-19 has further exacerbated the challenges confronting the international trade policy of a small developed economy. This chapter situates New Zealand's trade policy within International Relations theory and provides an overview of the context for New Zealand trade policy, including in the COVID-19 era. It proceeds to identify two specific reference points that inform New Zealand's trade policy going forward and concludes with an outline of its dynamic and evolving six-part framework for navigating these turbulent times for trade policy. © 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.