INTERNATIONAL TRADE  RELATIONS

                                                               (ITRN  603)

 

Fall, 2001

(Wednesday  7:05-9:35)

 

Prof. Robert A. Rogowsky [1]       

 

            INTL 603 examines the multilateral trading system and its rules and practices.  This course stresses the political dynamics of international trade relations and trade policy application, particularly through the regulatory framework in the United States.  The course covers the origin and basic rules of the GATT and the World Trade Organization (WTO), the dynamics and legal basis for U.S. trade policy, several ‘newer’ issues in international trade policy such as the trade and the environment, trade-related investment issues and trade in services, as well as regional trade arrangements and groupings such as NAFTA and APEC.  Bilateral trade relations with some of the United States’ largest trading partners, including Japan and China are also covered.

 

            The course material is divided into three parts, covering:  Domestic and Multilateral Trade Institutions and Law, New Trade Issues, and Regional and Bilateral Trade Issues.

 

            The course will be taught through lectures, class discussion, case studies where relevant, and at times guest lectures.  One major paper will be assigned, possibly a short mid-term exam (typically voted on by students), and a final exam.  Depending on whether a mid-term exam is given or not, grading will be based on the paper (45%), class participation (10%), and the final exam (45%).  The exam must be written in “blue books.”

 

             The paper will be no longer than 9 typed single spaced pages.  It must be original, complete,      precise, well-written, and devoid of non-essential information.  It must also contain a bibliography.  Oh, and the part about being original, I mean that.

 

            The only books to be purchased for the course is a relatively small reading book of articles, J. Schott, The WTO after Seattle, (Washington, IIE), and Rogowsky, Linkins, and Tsuji, Trade Liberalization: Fears and Facts.  Other materials will be distributed in class or are available on the internet.


                                                      CLASS SCHEDULE

 

            CLASS I: (Aug 29)            Introduction to the Class and a review of the Historical Political Economy of Modern Trade Policy Formation

 

                        Reading Book:  I.M. Destler (1995), American Trade Politics, Chs. 1and 2. D. Richardson (1994), “Trade Policy” in M. Feldstein, ed. American Economic Policy in the 1980s, Chicago: Univ. Chicago Press.

                        Trade Liberalization: Ch. 1-2.

                            Background: Robert Baldwin, The Political Economy of U.S. Import Policy, esp. Ch. 1; and Krugman and Obstfeld, International Economics, esp. Ch. 9.

                               

            CLASS II: (Sept 5)            The Uruguay Round and The World Trade Organization

 

                        Reading Book:  R. Blackhurst, (1997) “The WTO and the Global Economy,” The World Economy, 20, No. 5 (August, 1997) pp. 527-44; J. Jackson (1997), , The World Trading System: Law and Policy of International Economic Relations, Cambridge: MIT Press, pp. 99-105.

                        Schott Book: “The WTO after Seattle,” Jeff Schott, Ch. 1. 

                                    Background: J. Schott (1994), The Uruguay Round: An Assessment, IIE, Wash. D.C., Overview, pp. 3-43;  Implementing the URA,"   The Year in Trade 1994 : Operation of the Trade Agreements Program 46th Report, USITC publication, Ch.1. ; J. Jackson (1997), The World Trading System: Law and Policy of International Economic Relations, Cambridge: MIT Press, Chs. 3 (pp 99-105 only), 6, and 8;

 

            CLASS III: (Sept 12)            Global Governance

 

                        Reading Book:  J. Mathews, “Power Shift,” Foreign Affairs, Jan/Feb. 1997; J. Scholte, “The WTO and Civil Society,” J. of World Trade.  33(1) 1999; “Lori’s War,” Foreign Policy, Spring 2000; J. Braithwaite and P. Dranos, “The Struggle for a Sovereignty of the People,” Global Business Regulation, (Cambridge U. Press, 2000); V. Cable, “Managing the System,” Globalization and Global Governance, (Royal Inst.of Int’l Affiars, 1999).

                        Trade Liberalization: Ch. 7

To Find:  William H. Lash III and Daniel T. Griswold, WTO Report Card II: An Exercise or Surrender of U.S. Sovereignty? ( James Sheehan, The Greening of the World Bank: A Lesson in Bureaucratic Survival, Foreign Policy Briefing,

 

            CLASS IV: (Sept 19)             United States Trade Policy: A View from Inside

                                                Guest Speaker: David Walters, Chief Economist, USTR

                                               

Reading Book:  A.W. Wolff, (1998) “Goals and Challenges for U.S. Trade Policy,” in G. Feketekuty, Trade Strategies  for a New Era;

                        Schott Book: “The United States’ Interest in New Global Trade Negotiations,” C. Fred Bergsten, Ch. 2.

To Find: President’s 2001 International Trade Legislative Agenda,

                                    C. Fred Bergsten, “The Next Trade Policy Battle,”

 

 

 

            CLASS V: (Sept 26)            National Trade Law and Trade Remedies

                       

                        Reading Book:  Thomas Howell, (1998)  “The Trade Remedies: A U.S. Perspective,” Trade Strategies  for a New Era; Robert Willig, (1998) “Economics Effects of Antidumping Policy,”

                        To Find: USTR Releases Super 301, Special 301 And Title VII Reports,

                                     

                        G Hufbauer, “Antidumping:  A Look at U.S. Experience– Lessons for Indonesia,”

                                     

Schott Book: “Antidumping and Safeguards,”P. Messerlin, Ch. 1.

                        Background: Destler, American Trade Politics, Ch. 6.

 

            CLASS VI:  (Oct. 3)            Case Study: Lamb Meat and Steel

                                                Lecture by Peter Watson: (Invited) Materials provided

 

                        October 10 Fall Break

 

            CLASS VII: (Oct. 17)            Dispute Resolution : Multilateral Rules and Procedures

                                               

            Reading Book: Amelia Progis, WTO Dispute Settlement: the Background and AD/CVD Issues,”Speech, April, 1999; Robert Hudec, “The New WTO Dispute Settlement Procedure: An Overview of the First Three Years,” Minn. J. Global Trade, Vol. 8:1, 1999, 1- 53.

                        Schott Book: J. Jackson, “Dispute Settlement and the New Round,”

Provided:  R. Rogowsky, “WTO Disputes: Building International Law on Safeguards,” Virginia. Lawyer, 2001.

 

            CLASS VIII: (Oct. 24) Case Study: Invited Guest Lecturer: Hon. Jennifer Hillman, Commissioner, USITC

 

            Reading Book: D. McNeil, “The First Case Under the WTO’s Sanitary and Phytosanitary Agreement:  The European Union’s Hormone Ban,” Va. J. of International Law, Vo. 39:89.  And, sundry newspaper clippings about Bananas (to be provided);

 

            CLASS IX: (Oct. 31)            Trade and Social Issues (Environment and Labor Standards)

                                                Invited Guest Speaker: Judy Dean

                       

Schott Book:  Esty, “Environment and the Trading System,” Ch. 15, and K. Elliott, “Getting Beyond No...!, Ch. 12.

                        Trade Liberalization: Ch. 6.

To Find: Kimberly Elliot, The ILO and  Enforcement of Core Labor Standards,

                       

            Catherine L. Mann, “Liberalizing Services:  Key to Faster Global Growth and the Sustainability of the US Trade Deficit,”

                        Background: OECD Report on Trade and Environment,

                                          S. Charnovitz, (1995) "The WTO and Social Issues,” Journal of World Trade, Vol 28, #25

                                K. Anderson, “The Entwining of Trade Policy with Environmental and Labor Standards,” in The Uruguay Round and the Developing Economies, W. Martin and A. Winters, eds., World Bank Discussion Papers, 307, (1994).

           

 

CLASS X: (Nov. 7)            Investment and Services in a Global Market

                       

Schott Book: T. Moran, “Investment Issues,” Ch. 14, and Hoekman, “Towards a More Balanced and Comprehensive Services Agreement,” Ch. 9.

            Reading Book: A. Sapir, “The General Agreement on Trade in Services: From 1994 to the Year 2000,” J. of World Trade, 33(1): 51-66, 1999;

To Find:  Recent Trends in U.S. Services Trade, USITC, June 2001 Ch. 1.

            Background:  T. Moran, Foreign Direct Investment and Development, Ch. 10. (IIE. 1998); World Bank Annual Report 1996, Volume I Special Topic, “Trade and Foreign Direct Investment.”  Case study in WTO Telecommunications Agreement, Ch. 4.[www.usitc.gov]

           

            CLASS XII:. (Nov. 14) Competition Policy in the Global Market

                                                                                               

            Schott Book: E. Graham, “Trade, Competition, and the WTO Agenda,”

To Find: B. Hoekman and P. Holmes, “Competition Policy, Developing Countries and the World Trade  Organization,”  (#2211);  Speeches of  Joel Klein, “The Antitrust Division's International Anti‑cartel Enforcement Program,” and James M. Griffin, “An Inside Look at a Cartel at Work: Common Characteristics of International Cartels,” 

Debra Valentine, Federal Trade Commission, “Antitrust in a Global High‑tech Economy,”   ,

 

            CLASS XI: (April 11) Regionalism [Paper due]

           

            Reading Book: R. E. Baldwin, (1997) “The Causes of Regionalism,” The World Economy, Vol. 20, No. 7;  R. Wonnacott, "Free-Trade Agreements:  For Better or Worse;";  J. Bhagwati, “Fast Track to Nowhwere,” Economist, Oct. 18, 1997;

To Find:  Isidro Soloaga and L. Alan Winters, “How Has Regionalism in the 1990s Affected Trade? (August 1999), (#2156) ; S. Andriamananjara, “Preferential Trading Agreements and the Multilateral Trading System,” 

            Background:  J. Frankel, Regional Trading Blocs in the World Economic System, (Institute for International Economics, Oct. 1997), chs. 1,

 

            CLASS XIII: (April 18) Japan

 

            Reading Book: Karel van Wolferen, “The Japan Problem Revisited,” Foreign Affairs,.  See also speeches/testimony on USTR webpage. Bruce Stokes, New Beginnings,

                                   

                Background: Edward Lincoln, “Japan’s Financial Mess,” Foreign Affairs, May/June, vol. 77, pp. 57-66

 

 

 

           

            CLASS XIV: (April 25) China

           

Reading Book: C. Barfield, Tiger by the Tail, (American Enterprise Institute) Ch. 2; and supplemental materials as provided/assigned.

 

            FINAL EXAM (May 2)   In Class.   


[1]             Dr. Robert Rogowsky is Director of Operations of the U.S. International Trade Commission.  Phone: (202) 205-2230, and e-mail: rrogowsky@usitc.gov.