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Asymmetric Trade Negotiations: The International Political Economy of New

Phil Foster

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Published in Asymmetric Trade Negotiations (The International Political Economy Of New Regionalisms Series)

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Asymmetric trade negotiations are a type of international trade negotiation in which one country has significantly more power than the other. This can be due to a number of factors, such as the size of the two economies, the level of development, or the political clout of the two countries.

Asymmetric trade negotiations can have a number of negative consequences for the weaker country, including the loss of jobs, the decline of industries, and the erosion of sovereignty. In this article, we will examine the international political economy of asymmetric trade negotiations and discuss some of the ways in which they can be more equitable.

Asymmetric Trade Negotiations (The International Political Economy of New Regionalisms Series)

by Will Jordan

4.4 out of 5

Language	:	English
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The Causes of Asymmetric Trade Negotiations

There are a number of factors that can contribute to the asymmetry of trade negotiations. Some of the most common include:

The size of the two economies. Larger economies have more bargaining power than smaller economies. This is because they can threaten to impose tariffs or other trade barriers on the smaller economy, which can have a devastating impact on the smaller economy's exports.
The level of development. Developed countries have more advanced economies than developing countries. This gives them a number of advantages in trade negotiations, such as the ability to produce goods and services more efficiently and to access more advanced technology.
The political clout of the two countries. Countries with more political clout have more influence in international organizations, such as the World Trade Organization (WTO). This gives them a greater ability to shape the rules of international trade in their favor.

The Consequences of Asymmetric Trade Negotiations

Asymmetric trade negotiations can have a number of negative consequences for the weaker country, including:

The loss of jobs. Asymmetric trade negotiations can lead to the loss of jobs in the weaker country, as businesses relocate to the stronger country to take advantage of lower labor costs or other advantages.
The decline of industries. Asymmetric trade negotiations can lead to the decline of industries in the weaker country, as businesses are unable to compete with the more efficient producers in the stronger country.
The erosion of sovereignty. Asymmetric trade negotiations can lead to the erosion of sovereignty in the weaker country, as the stronger country is able to impose its will on the weaker country.

Making Trade Negotiations More Equitable

There are a number of ways to make trade negotiations more equitable. Some of the most important include:

Creating a level playing field. Governments can create a level playing field for trade negotiations by ensuring that all countries have access to the same information, technology, and resources.
Providing technical assistance. Governments can provide technical assistance to developing countries to help them build their capacity to participate in trade negotiations.
Establishing fair trade rules. Governments can establish fair trade rules that protect the interests of all countries, regardless of their size or level of development.

Asymmetric trade negotiations are a major challenge to the global trading system. They can have a number of negative consequences for the weaker country, including the loss of jobs, the decline of industries, and the erosion of sovereignty. However, there are a number of ways to make trade negotiations more equitable, such as creating a level playing field, providing technical assistance, and establishing fair trade rules. By working together, we can create a more just and equitable global trading system.

Asymmetric Trade Negotiations (The International Political Economy of New Regionalisms Series)

by Will Jordan

4.4 out of 5