POLI 359 Lecture Notes - Lecture 1: Longrun, Intensify, Unilateralism
3 Oct 2016
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Document Summary
The majority of ptas are free trade areas (ftas) - important for the debate - only common tariffs but not common external tariffs ( for non-members) Many ptas are bilateral agreements between north-south countries - to enjoy cheap labor, offshore production. Many inter-continental ptas - oten among countries that are not geographically close. Many ptas include trade-related provisions, ie deep regionalism - instruments of trade governance, including many regulations (property rights, labor standards) Economic variables - do a good job in predicting some ftas, but many things are left out. Econ variables explain ftas between natural trading partners. Mncs - ftas for large companies mainly. Now very few companies are reaping large benefits from ftas because they have already offshored abroad - by signing ftas they get low tariffs when reexport goods to their home country for example. So fta - benefit very few companies - benefits are concentrated whereas losses are spread, diffused.
