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Article

In a time of trade wars, free trade skepticism, tech rivalry, and multipolar disorder, the European Union (EU) cannot evade its responsibilities the last defender of the World Trade Organization (WTO). Yet, it raises the question of whether the EU has power to defend the WTO. The EU is a multilateralist-oriented power of global magnitude. Unlike the United States, the EU is openly defending the WTO in the current crisis created by continued refusal to appointment WTO Appellate Body members. Like the United States, the EU is concerned with the illegitimate trade practices of China. Yet, the EU uses diplomatic pressure on China within the rules of the WTO. The EU is actively trying to rescue the rule-based trade system. Yet, it cannot do so alone. It needs support, not just form other WTO members but also from within Europe itself. The current crisis is in part rooted in the inability of the WTO members to update the WTO rulebook. The focus will be on the potential clash between a more assertive EU on sustainability and the absence of updated WTO rules on sustainable trade issues. This may force the EU to confront a deep-rooted policy dilemma. The question is whether the EU should continue to refrain from using its market power to promote sustainable trade in respect of the WTO. As the EU is about to ratify several bilateral trade agreements of commercial, geo-economic, and indeed geo-political importance, such as the EU–Mercosur or EU–Vietnam agreements, the rule-orientation of the EU faces growing domestic opposition as well as external contestation. Furthermore, the EU is modernizing its trade defense weaponry, the antidumping instrument, and has recently declared its intent to impose unilateral climate-related trade policy measures, the carbon-adjustment tariff, in the future. Thus, an incident such as the burning of the Amazon forest may force the EU to take a tougher stance on sustainability at the risk of bringing the EU on a collision course with the WTO itself, its rules, process, and member states. Consequently, the complex setup of the EU as a trade power could make it difficult to ratify WTO-compatible trade agreements in the future.

Article

Kerry A. Chase

Government policies to protect and promote national culture are a perennial issue in the trading system. Controversy over trade and culture, in almost every instance, swirls around entertainment media—mainly movies, television, video, and music. The object of contention is that many states employ an assortment of financial, trade, and regulatory measures to subsidize locally produced entertainment, restrict imports, and favor national content over foreign content. Such measures often impede trade, pitting commercial interests in open markets and free choice against calls for state action to mitigate trade’s social repercussions. Differing perspectives on the motives behind these policies typify disputes over trade and culture. In one view, state regulation of entertainment media is cultural policy, an essential means of preserving a nation’s identity, culture, and way of life. From another vantage point, these policies are backdoor protectionism, a handout to local business and labor under the guise of cultural preservation. The problem of trade and culture therefore raises basic questions about politics: Why do states subsidize production and restrict imports? What drives political demands for trade protection and government aid? How can variation in policy responses be understood? In the World Trade Organization (WTO), disputes over trade and culture center on two related issues. The first is inclusion of a “cultural exception” in trade rules to green-light, on cultural grounds, state actions that interfere with trade in entertainment media. Although there is no cultural exception in the WTO, pressure to accommodate the “specificity” of entertainment media as a cultural phenomenon has complicated trade negotiations and at times required give and take to placate the opposing sides. The second issue is policy liberalization in entertainment media, which has lagged behind market opening in many other goods and services. Deadlock over trade and culture has inspired some WTO members to explore other options: the European Union (EU) and Canada spearheaded the push for a Convention on Cultural Diversity, and the United States has pursued policy liberalization in a series of free trade agreements. Important political questions again crop up: Why has culture stalemated the WTO, and why haven’t trade linkages like those for health safety standards been institutionalized for trade and culture? Why do international political alignments on this problem form as they do? What explains the design of trade rules for entertainment media, and what is the trade regime’s impact on state policy? The age-old conflict over trade and culture continues to play out and shows no signs of abating.

Article

International trade and state efforts to liberalize or restrict trade generate very contentious politics. Trade creates winners and losers at the individual level, firm level, industry level, national level, and even regional level. It also generates conflict among transnational social groups, such as environmental advocacy organizations, human rights organizations, and transnational business alliances. Because of this complexity of the politics of international trade, scholars of international political economy (IPE) can focus on different levels of analysis and a variety of stages of the political decision-making process. Scholars agree that not only societal preferences but collective action problems, domestic institutions, and international factors all affect trade politics and policy outcomes. These aspects of trade politics together form the key influences on trade policy and whether it is liberal or protectionist in nature. Societal preferences constitute the initial inputs into the trade policy-making process. Understanding how different groups of economic actors within society win or lose from trade liberalization or protection is the first step toward understanding trade politics and trade policy outcomes. Once societal trade preferences are formed, they must be aggregated into cohesive pressure groups or grass-roots movements whose purpose is to influence trade policy. This is easier for some groups of actors to achieve than others. In lobbying government actors on policy, interest groups find that domestic institutions play an important role translating societal inputs into policy outputs. Policy-making institutions vary in the degree to which they are susceptible to special-interest lobbying versus the preferences of broader societal coalitions, and electoral rules and party structures also affect policy outcomes, with certain configurations creating a bias toward more protectionism or liberalization. In addition to these domestic-level influences on trade policy, IPE scholars have extensively studied the ways that international factors also affect trade policy outcomes such as the extent of liberalization and the content of what is liberalized (e.g., manufactures versus agricultural goods versus services). International factors such as the distribution of power, the character of international institutions and trade agreements (e.g., multilateral versus bilateral), transnational civil society and diffusion processes may be thought of as inputs into the policy-making process as well. Systemic conditions may constrain the types of policies that governments can adopt, or they may open the door to a range of possible policy outcomes that are nevertheless limited by the preferences of domestic societal actors.

Article

Both trade and climate change policies affect the international competitiveness of carbon-intensive industries. This suggests that policy changes in one area may affect politics in the other. Does openness to international trade affect climate change politics? Do climate change policies affect the politics of trade? Does formally linking trade and climate policies via trade sanctions affect the prospects for cooperation in each domain? There are good theoretical reasons to believe that the answer to these questions is yes. Theoretically, each set of policies should affect the other, but these interactions could either encourage or discourage trade and climate cooperation. How trade and climate politics interact is thus an empirical question. Empirically, the overall picture is of a nascent but promising field of research. Extant studies provide indirect tests and suggestive evidence, but little in the way of firm conclusions. Only one point emerges clearly: progress in this area will require more and better data on national climate policies.

Article

Gustavo A. Flores-Macías and Mariano Sánchez-Talanquer

When the North American Free Trade Agreement (NAFTA) came into force on January 1st, 1994, it created the largest free trade area in the world, and the one with the largest gaps in development between member countries. It has since served as a framework for trilateral commercial exchange and investment between Canada, Mexico, and the United States. NAFTA’s consequences have been mixed. On the positive side, the total value of trade in the region reached $1.1 trillion in 2016, more than three times the amount in 1994, and total foreign direct investment among member countries also grew significantly. However, the distribution of benefits has been very uneven, with exposure to international competition reducing economic opportunity and increasing insecurity for certain sectors in all three countries. Twenty-four years later, the three countries renegotiated the terms of NAFTA and renamed it the United States–Mexico–Canada Agreement (USMCA). The negotiation responded in part to the need to modernize the agreement, but mostly to President Donald Trump’s concerns about NAFTA’s effect on the U.S. economy and the fairness of its terms. Although the revised agreement incorporated rules that modernize certain aspects of the institutional framework, some new provisions also make trade and investment relations in North America more uncertain.

Article

Stephanie J. Rickard

Policies as diverse as tariffs, exchange rates, and unemployment insurance vary across democratic countries. In an attempt to explain this cross-national variation, scholars have turned to the institutions that govern countries’ elections. The institutions that regulate elections, also known as an electoral system, vary significantly across democracies. Can these varied electoral institutions explain the diversity of policies observed? This question remains unanswered. Despite a growing body of research, little consensus exists as to precisely how electoral institutions affect policy. Why is it so difficult to untangle the effects of electoral institutions on economic policy? One reason for the confusion may be the imprecise manner in which electoral institutions are often measured. Better measures of electoral systems may improve our understanding of their policy effects. Improved theories that clarify the causal mechanism(s) linking electoral systems to policy outcomes will also help to clarify the relationship between electoral systems and policies. To better understand the policy effects of electoral institutions, both theoretical and empirical work must take seriously contextual factors, such as geography, which likely mediate the effects of electoral institutions. Finally, different types of empirical evidence are needed to shed new light on the policy effects of electoral institutions. It is difficult to identify the effects of electoral systems in cross-national studies because of the many other factors that vary across countries. Examining within-country variations, such as changes in district magnitude, may provide useful new insights regarding the effects of electoral institutions on policy.

Article

Research on the domestic politics of trade typically begins with a theory about who benefits from trade and who is harmed by it. The actors—for instance, firms, workers, or industries—who benefit from trade are expected to support liberalization while those who are harmed are expected to oppose liberalization. For individuals, exposure to globalization through the labor market—including the type of job, firm, or industry—is likely to be an important determinant of individuals’ preferences over policies governing the global economy. To understand the domestic politics of trade with respect to labor, therefore, it is important to ask two key questions. First, what explains the preferences of workers? Broadly, scholars can be divided between those that argue different economic factors (i.e., labor market consequences) explain attitudes toward free trade and those who argue that noneconomic factors (e.g., values, information) are the main drivers of attitudes. Empirical tests of these theories rely on survey data. Second, how do trade pressures influence elections and when do workers’ interests influence policy outcomes? Research on mass politics shows that workers’ interests with respect to trade shape not only support for incumbents in elections but also whether elected officials support free trade. Domestic institutions also play an important role in this process, with research suggesting that democracies and left-leaning governments implement trade policies that are more favorable to workers. Yet trade in the 21st century looks very different from trade 30 years ago. It no longer involves only (or even primarily) the exchange of final goods but also trade in intermediate goods and services. Trade is also closely linked to the production strategies of multinational firms, including offshoring. These fundamental changes in the nature of global economic activity have important implications for the how the interests of workers relate to those of their employers, and by extension the politics of trade. As a result, scholars are increasingly incorporating new models of trade into analysis of politics at the individual and aggregate levels.

Article

Although unionized workers have rarely represented more than a small minority of the population anywhere in sub-Saharan Africa, trade unions have played, and continue to play, a significant political role. Trade unions still occupy strategic choke points in many African economies, particularly around transport infrastructure, and retain a spatially concentrated organizational base as well as a degree of symbolic power drawn from participation in struggles against colonialism, apartheid, and authoritarianism. Three persistent dilemmas have strongly shaped the role of African trade unions and driven much of the academic debate about them. First are debates about the relationships between trade unions and political parties. These date to the often-fraught relationships between unions and anti-colonial movements in the last years of colonial rule. Pitched struggles, both within trade unions and between unions and governing parties, were often fought in the decade after the end of formal colonization over the degree of autonomy that unions should have from governing parties. These were often resolved through the widespread repression of politically independent unionism in the 1970s. This relationship, however, became untenable under processes of structural adjustment, and unions have often played a significant role in protests against neoliberal reforms, which have spurred widespread political transformation. Second are debates about the relationships of trade unions to non-unionized workers, especially the unemployed or the “informal” sector. Critics on both left and right have long pointed to the relatively privileged position of trade unions. This has consistently been invoked by governments seeking to justify the limited political role of trade unions as well as policies for wage restraint, state retrenchment, or currency devaluation that have negatively affected organized labor. However, given the increasingly widespread nature of informality and unemployment in contemporary Africa, trade unions have begun to make tentative steps toward organizing informal and unemployed workers in some cases. Finally, the relationships of African unions to the international labor movement and to international organizations have often been important. African unions have frequently drawn on links to international trade unions, regional institutions, or the International Labour Organization (ILO) as a way of compensating for domestic weaknesses. These strategies, however, have often engendered significant conflicts around the differing objectives of African and metropolitan actors, between African unions over access to international resources, and concerning “imperialism” by American and European unions.

Article

Fredrik Dybfest Hjorthen

International justice is about the principles of justice that set out what states may and must do in relation to other states and with respect to the people that inhabit them. Theories of international justice often assume that states are the most central agents for justice beyond the domestic realm. Even if the moral value of states is ultimately reducible to that of their inhabitants, states are the most central agents through which individuals act when it comes to international questions. Questions of international justice often involve one or more of the following justice concerns: distributive justice, rectificatory justice, and remedial justice. This is clearly seen in some of the most central topics of international justice, such as trade, climate change, colonialism, and war. International justice provides a framework for thinking about the rights and duties of states with respect to these topics. The principles that set out the rights and duties of states with respect to these issues sometimes come into conflict. This raises a question whether it is better to treat topics in isolation or whether an integrated approach is preferable. Moreover, there is a question about the extent to which states are permitted to give greater weight to its own interests. Finally, there are questions about the extent to which principles of international justice should be action guiding—that is, to what extent they should take into account the feasibility constraints that state leaders face when making decisions.

Article

Anthony R. Zito

New policy instruments have come onto the policy agenda since the 1970s, but there is a real question about whether the ideas behind the design of such tools are actually all that “new” when you assess the role of the policy instrument in its particular institutional and policy context. Taking Hood’s 1983 categorization of instruments as tools that manipulate society to achieve public goals via nodality (information), authority, treasure (finance), or organization, we can find instances where innovations in these areas predate the 1970s. Nevertheless, the mention of these instruments in international organizations such as the Organisation for Economic Co-operation and Development (OECD) and national institutions and debates as the means for both improving governance and protecting economic efficiency has increased in light of a number of interacting trends, including the rise of neoliberal and new management ideologies, the increasing perception of a number of wicked problems (e.g., climate change) and nested, politically sensitive problems (e.g., health and welfare policy), and a rethinking of the role of the state. A typology is offered for differentiating changes and innovation in policy instruments. Some very notable and complex policy instruments have reshaped politics and public policy in a particular policy sector; a notable example of this is emissions trading systems, which create market conditions to reduce emissions of climate change gases and other by-products. Information and financial instruments have become more prominent as tools used to achieve policy aims by the state, but equally significant is the fact that, in some cases, the societal actors themselves are organizing and supporting the management of an instrument voluntarily. However, this obscures the fact that a much more significant evolution of policy instruments has come in the area that is associated with traditional governing, namely regulation. The reality of this “command and control” instrument is that many historical situations have witnessed a more flexible relationship between the regulator and the regulated than the term suggests. Nevertheless, many OECD political systems have seen a move toward “smart” or flexible regulation. It is increasingly important that those who promote this new understanding of regulation see regulation as being supplemented and supported by and sometimes reinforcing new policy instruments. The integration of these “newer” policy instruments into the regulatory framework represents perhaps the most significant change. Nevertheless, there is some reason to question the real impact that new policy instruments have in terms of effectiveness and democratic legitimacy.

Article

Immigration has largely been neglected as part of the study of International Political Economy (IPE) until recently. Currently, IPE scholars have focused on two questions regarding immigration: what explains variation in public opinion on immigration and what explains variation in immigration policy. The scholarship on public opinion on immigration has largely been divided into two camps, those who argue that economic factors drive opinion and those who argue that cultural factors are the driver. Those who study the role economic factors have played in shaping opinion on immigration often start with the Stolper-Samuelson theorem. The Stolper-Samuelson theorem shows that while immigration increases the overall size of the economy, it has different distributional effects. Immigration increases the size of the labor pool and, thus, should increase the returns to capital while decreasing wages. As such, those who derive most of their income from capital should favor immigration while those who derive most of their income from wages should oppose immigration. Additionally, the Stolper-Samuelson model shows that openness to trade should have the same effects as open immigration; thus, people should oppose or favor both trade and immigration. Early scholarship examined these predictions and found that opposition to immigration was much higher than opposition to trade and that those who derive much of their income from capital also oppose immigration at high rates. In response, one set of scholars focused on the additional costs that immigration, but not trade, brings. Immigrants, unlike goods, may place a burden on the social welfare system and thus, opposition to immigration especially by the wealthy may be driven by these costs. Other scholars noted that immigrants work in many industries that are unaffected by trade—most notably the service sector—and this may explain opposition to immigration. Finally, a third group has argued that opposition to immigration is largely driven by cultural concerns and xenophobia. Currently, this debate continues with both sides examining more nuanced survey data. Scholarship on immigration policy has similar divides. Immigration policy has become more restrictive since the late 19th and early 20th centuries, when most countries had very few restrictions on immigration. To explain these restrictions, one school of scholars has argued that labor unions oppose immigration, as it hurts the wages of their members. As unions gain strength, immigration should become more restricted. Others focus on the rise of the welfare state, arguing that immigration has been restricted to keep costs low. A third group has argued that greater political rights in the early and mid-20th century for the generally xenophobic working class has led to the restrictions. Finally, new scholarship argues that increased globalization—in the form of increased trade and increased foreign direct investment—has sapped business support for immigration, which has allowed anti-immigrant groups to have more say. Using a wealth of newly collected data, scholars are testing these different theories.

Article

Yoshiharu Kobayashi

Economic sanctions are an attempt by states to coerce a change in the policy of another state by restricting their economic relationship with the latter. Between, roughly, the 1960s–1980s, the question dominating the study of sanctions was whether they are an effective tool of foreign policy. Since the 1990s, however, with the introduction of large-N datasets, scholars have turned to more systematic examinations of previously little explored questions, such as when and how sanctions work, when and why states employ sanctions, and why some sanctions last longer than others. Two dominant perspectives, one based on strategic logic and the other on domestic politics, have emerged, providing starkly different answers to these questions. A growing body of evidence lends support to both strategic and domestic politics perspectives, but also points to areas in which they fall short. To complement these shortcomings, a new direction for research is to unite these perspectives into a single theoretical framework.

Article

“A Marriage of Convenience” became the best metaphor, coined in 1990 by distinguished American economist Sidney Weintraub to summarize the fundamentals under which NAFTA was built and understood, at least in mainstream analysis: the economic complementarities existing among the three countries of North America could work to the benefit of everyone involved if economic integration is well managed and geared toward the improvement of regional competitiveness. Thus, NAFTA became the privileged tool under which managed integration became implemented and assessed, at least in three major domains: as a foreign policy tool to advance the interests of each nation, as an economic device to reap the benefits of integration, and as the backbone under which a regional political and social bloc could eventually be constructed. Scholars, intellectuals, and public officials engaged in the discussions around NAFTA in each of those fields shared ideas, built some consensus, and split on dissents following competing approaches and/or national cleavages. The current literature in those three major fields of discussion is rich, voluminous, and highly inspiring, sometimes making references to other integrative experiences. This article reviews these debates and highlights either the consensus or dissention witnessed in each of the three domains under which NAFTA has been discussed the most. Since NAFTA cannot be separated from the political and social contexts that the debates and discussions took place in, a reference to those political contexts can be made when explaining and summarizing the debates. At a time when the mainstream consensus around NAFTA is being challenged by U.S. President Trump’s assumption that NAFTA is not about complementary economies but about economies competing against each other under a zero-sum game rationale, politics comes back to the forefront of North American affairs. The renegotiation of NAFTA will doubtless redefine the partnership among the three North American countries and the role that economic cooperation and integration entails for each.

Article

The literature on international hierarchy is emerging as a progressive research program. This new theory of international relations is generating novel propositions that are being empirically confirmed. Some propositions, like the hierarchical peace, provide new explanations for previously identified phenomena. Other propositions on defense spending, crisis joining,e trade, and civil wars and repression establish new empirical relationships that—if they are not actually inconsistent with existing theories—were not previously identified. If the measure of progress is the uncovering of new facts, the new hierarchy studies are clearly moving in the right direction. Further progress requires more and better measures of hierarchy and continued testing of propositions derived from the theory.

Article

The World Trade Organization (WTO) dispute settlement system is its judicial arm and enforcement mechanism, designed to assist members in resolving trade disputes that arise between them. Its design reflects a move toward greater legalization in trade governance under the multilateral trade regime. Compared with the dispute settlement system of its predecessor, the General Agreement on Tariffs and Trade (GATT), the WTO’s dispute settlement provided a more structured and formal process with clearly defined stages and more discipline in the timetable of the dispute so as to resolve trade disputes as efficiently as possible. Most important, the WTO’s dispute settlement provides for virtually automatic adoption of panel rulings: a respondent losing a case can block the adoption only if it can persuade all members of the WTO not to do so. The legal basis for the WTO’s dispute settlement system is the Dispute Settlement Understanding (DSU), which provides the principles and procedures by which members may bring their trade disputes to the multilateral trade regime for resolution. Overseeing the dispute settlement process is the Dispute Settlement Body (DSB), which consists of all WTO members and meets regularly to receive and to adopt reports of disputes at their various stages of progress. How effective is the WTO’s dispute settlement mechanism? Effectiveness can be conceptualized as success in attaining the objectives of the dispute settlement under the WTO in three areas: the efficiency of dispute settlement; inclusiveness of the dispute settlement process, especially as it concerns developing country participation; and compliance with legal obligations resulting from arbitration. The existing scholarship on this topic features key debates and frontiers for future research on firms and global production networks/value chains that have the potential to advance our state of knowledge concerning this “crown jewel” of the multilateral trade regime.

Article

In a comparison of today’s global political economy with that of the last great era of globalization, the late nineteenth century, the most prominent distinction is be the high degree of institutionalization in today’s system. While the nineteenth-century system did have some important international institutions—in particular the gold standard and an emerging network of trade agreements—it had nothing like the scope and depth of today’s powerful international economic institutions. We cannot understand the functioning of today’s global political economy without understanding the sources and consequences of these institutions. Why were international organizations (IOs) such as the World Trade Organization (WTO) or International Monetary Fund (IMF) created? How have they gained so much influence? What difference do they make for the functioning of the global economy and the well-being of individuals around the world? In large part, understanding IOs requires a focus on the tension between the use of power, and rules that are intended to constrain the use of power. IOs are rules-based creatures. They create and embody rules for gaining membership, for how members should behave, for monitoring, for punishment if members renege on their commitments, etc. However, these rules-based bodies exist in the anarchical international system, in which there is no authority above states, and states continue to exercise power when it is in their self-interest to do so. While states create and join IOs in order to make behavior more rule-bound and predictable, the rules themselves reflect the global distribution of power at the time of their creation; and they only constrain to the extent that states find that the benefits of constraint exceed the costs of the loss of autonomy. The tension between rules and power shapes the ways in which international institutions function, and therefore the impact that they have on the global economy. For all their faults, international economic institutions have proven themselves to be an indispensable part of the modern global political economy, and their study represents an especially vibrant research agenda.

Article

China’s economic impact on Africa in the 21st century has been enormous. China became Africa’s largest trading partner in 2009 and has subsequently widened the gap with Africa’s second largest trading partner. China is Africa’s largest bilateral source of loans and an important provider of Organisation for Economic Co-operation and Development (OECD)-equivalent aid, although well behind the European Union and the United States. Annual foreign direct investment flows by Chinese companies are growing and are now in the same league as companies from other major investing nations. Increasingly, African leaders are focusing their economic relationships on China and, because of China’s economic success, some of them are also looking to China as an economic and political model. The future in Africa of China’s Belt and Road Initiative and the use of the renminbi (RMB) as an international currency are less clear. China’s influence on African economies comes with challenges. China has developed a significant trade surplus with Africa. Although resource-rich African countries have sizable trade surpluses with China, most African countries, especially the resource-poor ones, have trade deficits, some of which are huge. The influx of inexpensive Chinese products is also stifling Africa’s ability to produce similar goods. African governments welcome Chinese loans, which are usually used for infrastructure projects, but there are signs these loans are contributing to a debt problem in an increasing number of countries. Most Chinese aid to Africa consists of the concessionary component of these loans. Small Chinese traders have flocked to Africa, competing head-to-head with African counterparts. This has led to growing antagonism with African market traders, although African consumers welcome the competition. While Western countries collectively are much more important to African economies than is China, Beijing has become the single most important bilateral economic partner in a number of countries and is challenging the United States and Europe for economic leadership across the continent. China’s most significant competition in the coming years may be less from the United States and other Western and Western-affiliated countries such as Japan and more from developing countries such as India, Brazil, the Gulf States, Turkey, and Indonesia.

Article

More Americans than ever before believe that money in politics weakens our democracy. Public opinion polls show that the number of people who believe that the country is run by a few big interests looking after themselves rose to nearly 80% over the past 20 years. The belief that corporate interests drive public policy is not all that surprising when you consider the growth of lobbying in the United States. According to the Center for Responsive Government, from 1998 to 2016, the amount of money spent on lobbying the U.S. government grew from $1.45 billion to $3.12 billion with well over 10,000 lobbyists in Washington. With this all this money attempting to influence policy outcomes in Washington, it is no wonder that Americans are skeptical of the intentions of government officials. However, political scientists have found a more mixed result when it comes to the actual influence of money on politics. One study asked if the amount of money spent on any given issue really influences policy outcomes. Other studies have shown some benefit to the private parties that lobby. Thus despite significant research on the topic, there is little agreement among political scientists on just how lobbying influences political actors or if lobbying directly impacts policy results. When it comes to foreign policy, corporate lobbies are an ever-present influence in the crafting of government policies. Whether in the European Union or the United States or other countries around the world, corporate lobbies view representing their interests in a truly global fashion. While corporate interests are investing in shaping foreign policy in a variety of issues areas such as defense spending, arms sales, contractors on humanitarian missions, one area is particularly vulnerable to corporate influence—trade and finance. Research shows that U.S. trade politics is heavily influenced by the lobbying of business organizations and trade associations. In fact, the U.S. administration often relies on interested corporate parties to provide it with both the expertise that shapes the agreement itself and the political case for trade liberalization that shapes the public pro-trade campaign. In turn, corporate lobbying for trade agreements is a costly and involved process. For example, during the eight years of negotiations over the TransPacific Partnership Agreement, a regional trade agreement between the United States and 11 other Pacific Rim countries, corporations paid $2.6 billion dollars to lobbyists to influence the content of the agreement and to promote it to Congress and the American public. An overview of the literature on corporate lobbying and an examination of the case of U.S. trade shows a particular example of how corporate lobbying works to influence foreign policy.

Article

Paul Nugent

African borders, which mostly follow the contours of the former colonies, are widely regarded as artificial and yet have enjoyed remarkable longevity. On the one hand, there have been relatively few serious secessionist and/or irredentist bids. On the other hand, a limited number of border disputes have been settled and mostly without recourse to conflict. This is often attributed to the willingness of states to accept the principle of the intangibility of borders inherited from colonialism and the associated legal principle of uti possidetis. Most claims to secession are based on a preexisting sense of territoriality, whereas there are relatively few that are premised on the rights of peoples to self-determination. It has been pointed out that claims to secession are often tabled as a bargaining position rather than as a nonnegotiable demand. However, the secession of South Sudan has created a genuine precedent, and there has been an upsurge of secessionist movements that reflects this reality. In addition, there has been a proliferation of fresh border disputes, which reflects the increased competition for valuable resources such as oil. This would suggest that some of the landscape of border politics is undergoing a shift. However, a number of factors continue to work in favor of the reproduction of existing borders. Paradoxically, the fact that guerrilla insurgencies tend to breed in borderlands, from where movements either aspire to take over the existing state or seek to carve out zones of de facto control, means that the borders themselves are not challenged. War economies depend on transboundary flows in which local populations themselves are deeply invested. Moreover, the flight of displaced populations and refugees toward borders may create greater insecurity at the margins but also tends to reinforce borders in both a legal and a practical sense. Finally, the struggle to determine the basis on which trade and transport is managed involves associational actors operating at the national level. Equally, fishermen, herders, farmers, and other local actors frequently invoke national affiliations to justify their own right to exploit resources within border zones. At the border itself, one observes a convergence of international, national, and local political scales in a particularly striking manner.

Article

At the end of World War II, Austria was occupied by the four Allies. The occupation ended in 1955 on the condition that Austria would declare permanent neutrality, which the Soviet Union had required. In the first half of the 1950s, relations with the newly founded European Coal and Steel Community were being discussed in Austria because the organization encompassed Austria’s two most important trading partners at that time, West Germany and Italy. But after the uprising in October–November 1956 in neighboring Hungary, Austria started to stress its neutrality and declined European Economic Community (EEC) membership. Instead, in 1960 Austria joined other European countries to create a less-integrated economic entity, the European Free Trade Association (EFTA). In the mid-1980s, the debate about membership in the now European Community (EC) started again. Economic problems and a narrower interpretation of neutrality led to Austria’s application for EC (later European Union) membership in July 1989. After the fall of the Berlin Wall in November 1989 and the applications of other EFTA countries, Austria finally acceded to the EU on January 1, 1995 (along with Finland and Sweden). The political system and its economy adjusted relatively smoothly to the challenges of EU membership; “social partnership,” the close cooperation of trade unions and business groups, while losing some of its power, could maintain its influence on Austrian politics, and Eastern enlargement of the EU brought further economic advantages for Austria. As one of the smaller EU countries and a non-NATO member, Austria has a somewhat unique position in the EU. Environmental policy and supporting EU membership of the Balkan countries are among Austria’s important activities. But the country has no close partners in the EU because it does not participate in the “Visegrad” group with the other Central European members. This difficulty was evident during the period of sanctions against the new Austrian government in 2000.