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The WTO Primer
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The WTO Primer Tracing Trade’s Visible Hand Through Case Studies
Kevin Buterbaugh Richard Fulton
The WTO Primer: Tracing Trade’s Visible Hand Through Case Studies Copyright © Kevin Buterbaugh, 2007. All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles or reviews. First published in 2007 by PALGRAVE MACMILLAN™ 175 Fifth Avenue, New York, N.Y. 10010 and Houndmills, Basingstoke, Hampshire, England RG21 6XS. Companies and representatives throughout the world. PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan® is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN-10: 0-230-60020-4 (hardcover) ISBN-13: 978-0-230-60020-1 (hardcover) ISBN-10: 0-230-60021-2 (paperback) ISBN-13: 978-0-230-60021-8 (paperback) Library of Congress Cataloging-in-Publication Data is available from the Library of Congress. A catalogue record of the book is available from the British Library. Design by Scribe Inc. First edition: January 2008 10 9 8 7 6 5 4 3 2 1 Printed in the United States of America.
To Karen and Sara and Mom, inspirations all. —Rich To Claudia for providing me the support to write. —Kevin
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TABLE
OF
CONTENTS
List of Figures
ix
1
Introduction
1
I
History and Development of the GATT/WTO
13
2
The GATT Rounds
15
3
The Uruguay Round and the Creation of the WTO
39
4
The WTO: Structures, Issues, and Challenges
67
II
The World Trade Organization: Cases and Controversies
85
5
The Great Banana War
87
6
The Beef Over Beef: Food Safety Standards and the WTO
105
7
Enter the Dragon: China’s Accession into the WTO
123
8
The Battle in Seattle
145
III
The Look to the Future
163
9
The New Round: Doha and Cancun
165
10
Conclusions: Foundations for the New Round
177
Appendix 3.1
191
Notes
195
Bibliography
209
Index
225
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LIST Table 1.1
OF
FIGURES
Theoretical views on trade and international organization
2
Graph 3.1 U.S. balance of trade 1970–1986
44
Graph 3.2 U.S. balance of services trade 1970–1990
44
Figure 4.1 WTO structure
70
Graph 4.1 Selected member contributions to the WTO as a percent of the WTO’s total budget for the year 2005
73
Figure 4.2 The dispute settlement process
75
Figure 7.1 The accession process
132
Table 8.1
159
Anti-WTO platforms
Figure 9.1 The G21 member countries
170
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C
H A P T E R
1
INTRODUCTION The World Trade Organization (WTO) may well be the least known and least understood component of the contemporary international political economy. The role it plays in the interplay of international trade is central and significant. Yet, other elements of the system like the World Bank or the International Monetary Fund are more visible even though their scope is narrower and their impact less telling. This text is an at