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Contributing factors to the United States shift from World trade Organization (WTO) to Free Trade Agreements (FTAs) as the primary vehicle for international trade
The United States (the US) had been the leading proponent of World
Trade Organization (WTO) as the multilateral trade arena during the early stages.
Despite of this fact, the international community has witnessed the US Free Trade
Agreements (FTAs) proliferation over the past twenty years. Recent trends have
shown that the US FTAs aim to cover the globe with extensive trade issues. This
research has identified several factors that cause the shift from WTO to FTAs.
These factors can be divided into the internal and external factor.
Based on neoliberal institutionalism and national interest theories, this
research finds the external factor: the US views the WTO as no longer serving the
nation's economic objectives optimally. The US is challenged with unsatisfactory
outcomes regarding market access liberalization and intellectual property
protection from the WTO that are caused by the clash of interest between them
and other major players. In other words, their national interests are not met in the
WTO.
Further, this research finds the internal factors that comprise the domestic
pressures in US trade policy-making and the power that the US has to pursue the
economic objectives.
Using the two-level game and forum-shifting theory, US trade policymaking
is heavily dependent on the interests of interest groups as the parts of the
US national interests. Approval from these groups will most likely result in the
implementation of international agreements. In FTAs, the US can optimize their
power and advantages and minimize opposition in FTAs since WTO, the other
venue, is less responsive to their agenda.
Finally, using power asymmetry theory, the US uses their abundant
resources, high economic capabilities, and the advanced technology that they have
over their trading partners to their advantages. Their political power has been
effective in bringing more economic impacts to the nation.
Keywords: United States, FTAs, WTO, forum-shifting, market access, agriculture, services, intellectual propertys
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