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An analysis is made of the role of the WTO (World Trade Organization) as a forum for negotiations. Special attention is given to the concept of reciprocity, since this is a central element of multilateral trade negotiations (MTNs). The chapter centres on the problems that confront negotiators seeking to obtain agreements, the techniques that are used, and the reasons MTNs tend to have outcomes that do not maximize national welfare. The sections of the chapter are as follows: Overview of negotiating rounds [held since 1948, when GATT was founded]; Multilateral trade liberalization; Interest groups and lobbying activity; Reciprocity and the mechanics of negotiations; and A typology of key aspects of trade negotiations.

George W. Bush came to office with an ambitious free trade agenda but without clear congressional support for it. Initially, the Bush administration engaged in a great flurry of activity, including successfully launching a new round of multilateral trade negotiations for the United States. By 2008, however, hardly any progress had been made at the multilateral negotiations, and other relatively ambitious regional plans failed to materialise. This chapter shows that what made it difficult for the Bush administration to advance its version of trade liberalisation was Congress's unprecedented opportunity to make its voice heard. In particular, the Bush administration's handling of multilateral trade negotiations during his first years in office had the unintended consequence of providing Congress the means to play a relatively active role in international trade policy in later years, making the Bush administration relatively vulnerable to Congress's position. It also discusses the Bush administration's restrained unilateralism, preference for bilateralism over multilateralism, and regional and bilateral trade agreements.

This chapter begins with a discussion of the science of climate change, and its implications for the environment, human health, and the global economy. It then examines how the evolving political and economic context has paralyzed multilateral negotiations, both with respect to climate change mitigation and adaptation, and with respect to multilateral trade negotiations at the WTO. It argues that the shifting fortunes of developed and emerging economies have altered the dynamics of global governance, and will continue to do so for the foreseeable future. An overview of the subsequent chapters is also presented.

The Transatlantic Trade and Investment Partnership (TTIP) offers through a regional trade agreement the allure of a partnership among nations accounting for almost fifty per cent of global economic output. In addition to increasing trade between the European and the United States, the TTIP could positively influence future WTO trade negotiations (which have been stalled since 2008), towards a new form of economic governance, in part by dealing with the issues most pertinent to encouraging trade expansion in today’s interconnected world, such as regulatory coherence, supply chain management, anti-competition law, and investment. The chapter addresses the potential impact of the TTIP, if it can be successfully concluded, not only on the bilateral EU–United States relationship, but also on future WTO multilateral trade negotiations, on the parties’ other trading partners and, ultimately, on the rules that will govern international trade in the twenty-first century, whether within or outside the WTO framework.

Under the goal-based approach advanced in the book, a methodical and comprehensive investigation into the effectiveness of the World Trade Organization (WTO) Dispute Settlement System (DSS) ought to start from a fundamental question: what are the goals (i.e. the desired outcomes) this system is to generate? With a view to establishing the relevant context for identifying and analysing these goals, the chapter provides a brief overview of the origins and evolution of the WTO DSS. It also describes the system’s current design and procedures. The chapter closes with some reflections on the hybrid legal/diplomatic, bilateral/multilateral character of the WTO DSS, reflected in the system’s structure and procedures as well as in its goals. This dual character, as illustrated later in the book, nurtures many of the shifts, conflicts, and subsequent trade-offs exhibited between the system’s goals throughout its operations.

This chapter highlights the omission of a discussion on the politics or political economy of reforms in India. It explains that political economy is a very important factor to the success of any reform agenda. It argues that a reform agenda not based on political realities is a recipe for frustration and stresses the importance of visionary political leadership mobilizing the people and convincing them that reforms are in their interest. It proposes issues that should be considered by India's political leaders in the millennium rounds of multilateral trade negotiations. These include elimination of high tariffs, new agreements on foreign direct investment, and liberalization of movement of natural persons.