Boeing -Bombardier trade dispute: an indication of the growing importance of regional agreements?

Ojo, Marianne (2017): Boeing -Bombardier trade dispute: an indication of the growing importance of regional agreements? Forthcoming in: American Journal of Economics (2018)

Abstract

“………in the long run, the lack of commitment to multilateral trade that sank the Doha round this week, will also start to corrode the trading system as a whole……. America, the animating spirit behind earlier trade rounds, declared that a bad deal was worse than no deal at all – and meant it…. The underlying rationale of unilateral trade liberalization had been buried and forgotten long ago.” (The Economist, 2006a)

The Uruguay and Doha trade rounds of agreements, do not only accentuate the difficulties of multilateral trade agreements, but also highlight the growing importance of regional agreements. In a phase where new territory is being experienced – particularly with the need for the United States to address its current account deficit, will it be willing to compromise in any deals involving America’s interest – in favor of diplomatic relations or will it stick to the widely held principle in Washington that “no deal at all is better than a bad deal”? Or will the United Kingdom’s involvement in the present trade dispute involving Bombardier and Boeing bring about an unprecedented and unexpected turn in events?

• Item Type: MPRA Paper
• Language: English
• Keywords: current account deficit; multilateral trade agreements; bilateral agreements; Doha Trade Round; tariffs
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance; G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G3 - Corporate Finance and Governance; K - Law and Economics > K2 - Regulation and Business Law; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing

References

BBC (2012). “Timeline: World Trade Organization” http://news.bbc.co.uk/1/hi/world/europe/country_profiles/2430089.stm

BBC (2017). “May Phones Trump as Boeing Dispute threatens Bombardier” By John Campbell BBC News NI Economics & Business Editor 12 September 2017 http://www.bbc.co.uk/news/uk-northern-ireland-41233257

Ojo, M. (2017). Uncertainties and Risk Assessment in Trade Relations: Emerging Areas of Research IGI Global

The Economist (2006a). “ Surprise!: The Power of the Emerging World (Special Report on the World Economy) Sept 2006

The Economist (2006b). “ The Future of Globalisation: The Wrecking of the World Trade Talks was Senseless and Short sighted.” July – August 2006

The Economist (2005). “The Story of Man: The Dismal WTO Deal” December 2005 – January 2006

World Trade Organisation (2015). WTO Members Secure “historic” Nairobi Package for Africa and the World: Ministers Reaffirm Central Role of WTO in Global Trade Talks, Acknowledge Divide on Future of Doha Round https://www.wto.org/english/news_e/news15_e/mc10_19dec15_e.htm 19 December 2015