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the rule of law. WTO-anchorage allows
each member to view its own policies
as minor derogations. Yet, at some point,
derogations become the new norm. The
steady erosion of the WTO’s centricity
will sooner or later bring the world to
a tipping point – a point beyond which
expectations become unmoored and
nations feel justified in ignoring WTO
norms since everyone else does.
This special issue of Globe gathers a
range of insights into the challenges
facing global trade governance in the
21st century. It leads with an interview
with WTO Director General Pascal
Lamy in which he highlights, inter alia,
the risk of a proliferation of different
standards or regulations that may, inadvertently
or otherwise, “lead to trade
slowing down and/or rising trade tensions”.
He points out that regional deals
are politically cheaper, but economically
lower quality.
Most of the other contributions focus
on aspects of the regional road. My
own essay stresses the point that the
WTO is doing just fine when it comes
to traditional trade – trade where things
are made in one nation and sold in
another. But when it comes to supplychain
trade – cross-border flows of
goods, investment, services, know-how
and people associated with international
production networks – WTO
“World trade governance
is at an historical
crossroads… Traditional
approaches – practices that
worked wonders in the
20th century – have failed
in the new century.”
disciplines are being supplanted by
regional rules. Joost Pauwelyn takes a
different tack by noting that the WTO’s
lack of progress on big, formal deals is
part of a general trend, what he calls
informal international lawmaking – nontraditional
actors (national regulators,
central banks, cities or private actors)
engaged in non-traditional processes
(networks or schemes rather than formal
international organisations) and
non-traditional outputs (guidelines,
standards or arrangements rather than
treaties). Noting that new technologies
have reduced costs of networked co -
operation, broader groups of stakeholders
can now get involved in international
cooperation efforts. At the same time,
our complex, diverse and rapidly evolving
society makes formal treaty-based
solutions often too difficult to achieve
and too rigid. Traditional international
law – organisations such as the WTO
– may simply not be adapted to the new
realities. In this world view, the WTO
travails are not a passing issue; it is the
writing on the wall telling us what
future global governance will look like.
Taking a slightly more traditional
approach, Cédric Dupont examines how
regional multi-nation organisations are
playing a role in the regional road the
world seems to be on. Focusing on the
example of ASEAN, he notes they may
help sort out complexity and contri bute
to convergence, but they also raise a
series of questions about the feasibility
of such solutions and interleaving
of regional and global organisations.
The contribution by former WTO
Ambassador, Manuel A.J. Teehankee,
who is now a visiting fellow at the
Graduate Institute Centre for Trade and
Economic Integration, focuses on a
narrower but more novel issue – export
controls. Taking the example of rare
earths, he points out that the WTO is
struggling with the balance between
competing national norms and prerogatives,
and the quest to foster and preserve
a global commons of prosperity
and opportunity for all.
Following the narrower focus, the
essay by Andres Lendle points out that
the “spaghetti bowl” of tariff preferences
is much less pernicious than it
might at first appear. While there are
hundreds of preferential trade agreements
on the books, most are not very
preferential. On most goods and in most
nations, the baseline tariffs are very
low (so little preference is gained from
duty-free access), and most of the hightariff
items are excluded from the preferential
deals. •
LA REVUE DE L’INSTITUT I THE GRADUATE INSTITUTE REVIEW I GLOBE I N11 Printemps I Spring 2013
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