Professional Documents
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Collapse is inevitable and the transition solves biodiversity collapse which is
inevitable in a world of the plan – tech can’t solve – we already answered your 2AC
Trainer, 5-10-16 – (Ted, Senior Lecturer, School of Social Work, University of New South
Wales, “Sustainability – The Simpler Way perspective,” Reslieience,
http://www.resilience.org/articles/General/2016/07_July/Sustainability%20The%20Simpler%
20Way%20Perspective.pdf,//BR/)
Firstly let’s set the scene; The deteriorating state of the planet. The resource base and environmental conditions on which the
present levels of global production and consumption are built are obviously deteriorating at an
alarming rate. Few if any would not be aware of this but it is important to briefly remind ourselves before focusing
on how impossible it would be for this base to sustain affluence and growth for all. A glance at the situation
reveals that resources are becoming more scarce and costly, including energy, productive
land, minerals, food, fish, wood and water, and ecosystems are being severely
damaged. We are losing species, forests, land, coral reefs, grasslands and fisheries at
accelerating rates. A sixth era of massive biodiversity loss appears to have begun. We are
polluting the planet with excess carbon dioxide, nitrogen and many toxic chemicals. The mass of big animals on
the planet has declined sharply in recent decades, probably down by 90% in the sea. The World Wildlife Fund
says that in general the quality of global ecosystems has deteriorated 30% since about 1970, and its “Footprint” measure indicates that we are now taking biological resources at a rate that would take 1.5 planets to
provide in a sustainable way. (2014.) The reason for all this massive resource depletion and damage to the
environment is simply that there is far too much producing and consuming going on. This
is causing too many resources to be taken from nature and too many wastes to be dumped back into nature. Now consider the limits case: Could everyone
live as we do? The 10-15% of the world’s people living in regions such as North America, Australia and Europe have per capita
levels of resource use that are around 20 times the average for the poorest half of people. How
likely is it that all the 9.7 billion people expected by 2050 could rise to the present rich world
level of resource use? If they did live as we do then world annual resource production and consumption, and ecological
damage, would be approaching 6 times as great as at present. Yet present levels of resource use and environmental impact are far from
sustainable. The World Wildlife Fund’s ”Footprint” analysis yields an even higher multiple. They estimate that it takes about 8 ha of productive land to provide water, energy settlement area and food for one
person living in Australia. Soif 9 billion people were to live as we do we would need about 72 billion ha of
productive land. But that is about 9 times all the available productive land on the planet. Now
add the absurdly impossible implications of economic growth. But the foregoing argument has only been that the
present levels of production and consumption are quite unsustainable. Yet we are determined to increase present living
standards and levels of output and consumption, as much as possible and without any end in sight. In other words, our
supreme national goal is economic growth. Few people seem to recognise the absurdly
impossible consequences of pursing economic growth. If we rich countries have a 3% p.a. increase in economic activity until 2050 then our output,
resource use and environmental impact will be around 4 times as great as it is now, and doubling every 23 years thereafter. Now what if by 2050 all the expected 9.7
billion people expected to be living on earth had risen to the “living standards” we in rich
countries would then have given 3% economic growth. Total world output, resource, use and
environmental impact would be approaching 15 times as great as they are now … unless technical advance and
efficiency gains could greatly reduce them. (See below.) These multiplies must be the focal point in discussions of sustainability. Grasping the magnitude of the overshoot and of the unsustainability is crucial here.
The numbers show that present, let alone probable 2050 rich world levels of consumption, are grossly unsustainable and could never be extended to all people. But can’t technical
advance solve the problems? Most people hold the "technical fix faith", believing that technical
advance will solve the resource and environmental problems and thereby make it unnecessary
for us to question the commitment to affluence and growth. When considering the following evidence keep in mind that what we need is not
just to stop increases in impacts as growth goes on -- we need to reduce impacts dramatically before sustainable levels are reached. There is a very strong case that technical advance
is nowhere near capable of solving the sustainability problems facing us. Note that many
miraculous technical developments, e.g., in physics, astronomy, genetics, and medicine, are not so relevant here where
the focus is on the possibility of making big improvements in the efficiency and energy costs of
producing energy and materials, and of cutting ecological impacts. Following are some of the main elements in the case. 1.
Efficiency gains to date. It is not the case that technical achievements in the relevant areas have been very
encouraging. Ayres and Vouroudis (2009) note that for many decades the efficiency of production of electricity and
fuels, electric motors, ammonia and iron and steel has more or less plateaued. In many crucial
areas such as producing energy and minerals (below) the trend is towards worse efficiency, i.e., the need is
for increasing inputs per unit of output. 2. The deteriorating productivity growth rate. Technical advance is regarded as a major determinant of productivity growth and that has been in long term decline since the
Even the advent of computerisation has had a surprisingly small effect, a phenomenon now
1970s.
labelled the “Productivity Paradox.” In fact the UK productivity growth rate has recently has gone
below zero; i.e., productivity has actually deteriorated. (Weldon, 2016.) 3. Little or no “decoupling” is
occurring for materials or energy use. This is the most important issue; does recent history indicate that economic
output has been or can be separated from materials and energy use, so that growth can continue
while resource demand falls? The “Tech-Fix faith” is fundamentally dependent on the
assumption that massive decoupling is possible. But all the evidence seems to say that the
amount of materials or energy needed to produce a unit of GDP in rich countries
has not improved much if at all in recent years. The box below refers to some of the evidence. Weidmann et al. (2014) say “…for the past
two decades global amounts of iron ore and bauxite extractions have risen faster than global GDP.” “… resource productivity…has fallen in developed nations.” “There has been no improvement whatsoever with
respect to improving the economic efficiency of metal ore use.” Giljum et al. (2014, p. 324) report in the world as a whole only a 0.9% p.a. improvement in the dollar value extracted from the use of each unit of
that the picture would have been worse had they included the many materials in rich world
imports. Diederan’s account (2009) of the productivity of minerals discovery effort is even more pessimistic. Between 1980 and 2008 the annual major deposit discovery rate fell from 13 to less than 1,
while discovery expenditure went from about $1.5 billion p.a. to $7 billion p.a., meaning the productivity of expenditure fell by a factor in the vicinity of around 100, which is an annual decline of around 40% p.a.
there is a
Recent petroleum figures are similar; in the last decade or so the discovery rate has not increased but discovery expenditure more or less trebled. (Johnson, 2010.) Schandl et al. (2015) say “ …
very high coupling of energy use to economic growth, meaning that an increase in GDP drives a
proportional increase in energy use.” “Our results show that while relative decoupling can be achieved in
some scenarios, none would lead to an absolute reduction in energy or materials footprint.” In all three
of their scenarios “… energy use continues to be strongly coupled with economic activity...” Alvarez found that for Europe, Spain and the US, GDP increased 74% in 20 years, but materials use actually increased
85%. (Latouche, 2014.) Similar conclusions re stagnant or declining materials use productivity etc. are arrived at by Aadrianse, 1997, Dittrich et al., (2014), Schutz, Bringezu and Moll, (2004), Warr, (2004),
Berndt, (1990), Smil, (2014) and Victor (2008, pp. 55-56). (Note that economists often claim that the “energy intensity” of rich world economies is improving, but this is only because they fail to take into account
the huge amounts of energy used overseas to produce imports, and “fuel switching”; see Kaufman, 2004.) 4. There is ecological deterioration in almost all
domains. Technical advance has obviously not slowed, halted or reversed overall
damage to the planet’s ecosystems. The “Environmental Kuznets Curve” thesis is an
application of the decoupling claim to environmental impacts, asserting that as countries become richer impacts increase for a time but
then plateau and fall. There is little doubt now that the thesis is not valid. Rich countries are in general not solving their most serious
environmental problems. Alexander’s review (2014) concludes that for the world as a whole, ”… decades
to growth case. Present ways are so grossly unsustainable there is no possibility of all people
rising to the living standards we take for granted today in rich countries, let alone those we are
seeking. Again the most important point is the magnitude of the overshoot. Most people have no idea of how far beyond sustainable
levels of consumption we are or how big the reductions should be. For decades many scientists and agencies are have
been emphasizing the validity and importance of the basic limits case. Sustainable ways that all could share appear to require us
to go down to per capita rates of resource consumption around 10% of those we have now. It follows from the above discussion that the only solution is to shift to
some kind of Simpler Way, i.e., to lifestyles, settlements and systems that make it
possible for us to live well on a small fraction of our present rich world levels, with
no economic growth. THE INJUSTICE OF THE GLOBAL ECONOMY. Our goal should be societies that are sustainable and just. The present economy
is massively and unavoidably unjust; it does not and it can not distribute things fairly or develop
the right things. (For the detail see TSW: The Economic System.) As well as being an economic system that must have growth, the fundamental driving
mechanism in this economy is the market, and this never distributes things according to what is
needed, or according to rights, or what is ecologically desirable. Markets always allocate most scarce things to those who can pay most
for them, i.e., richer people and nations. That explains the huge differences between rich and poor nations in resource
and energy consumption; we get most of the oil and everything else for sale because we can pay
more than poor people who need things much more than we do. About 600 million tonnes of grain, one third
of world production, is fed to animals in rich countries every year while over 800 million people
are hungry. Why? Because the market determines who gets the grain; it is more profitable to feed it to
animals to produce meat for richer people. Even more importantly, this economy never develops what is most
needed; it always develops only what is most profitable for people with capital to invest. It is not difficult to
list things the majority of people in Haiti need, but what industries has this economy developed there? Mostly plantations and factories paying very low wages to a few, to produce goods to export to rich countries.
Haiti has rich resources that could enable all its poor people to provide for themselves most of the simple things they need for quite good lifestyles, but this economy gears those resources to the enrichment of the
local capitalist class, foreign corporations and people who shop in rich world supermarkets. For these reasons, conventional Third World development can be seen as a form of legitimised plunder. (See TSW: Third
It should be noted here that this does
World Development, and TSW: Our Empire. For an indication of the alternative approach to development see TSW: Chikukwa.)
not mean that there can be no role for markets in a satisfactory society. It does mean that they
must not be allowed to determine our fate. The account below indicates how communities might work out what things markets might be left to do, and eventually
whether there is any need for them. So again we are confronted with the way consumer-capitalist society inevitably
causes the most serious global problems; it cannot cut production to sustainable levels and it
cannot enable just distributions or appropriate development priorities . The problems in both
these domains can only be solved if people in rich countries shift down to living on something
like their fair share of global resources. This cannot be done unless there are huge and radical changes in systems, lifestyles and values. Few people in rich countries
understand that they could not have their high "living standards" if the global economy was not enabling them to take far more than a just share of world resources and to deprive Third world people of a fair share.
This also reveals the link between resource scarcity and limits on the one hand, and conflict and war in the world. Most armed conflict it is due to struggles to get or maintain access to scarce resource wealth in
other countries. Rich nations support repressive regimes willing to rule in our interests and they work to bring down governments that don’t. If you are not prepared to move down to living on something like your
fair share of world resources then you will continue to need lots of arms to maintain your empire. (See TSW: Peace and Conflict.) The loss of social cohesion and quality of life. 7 In addition to the foregoing
, in the richest countries we are experiencing accelerating social breakdown and a falling
problems
quality of life. This too is largely the result of the mindless pursuit of limitless material wealth. It has been clear for a long time that in rich countries raising GDP and monetary “wealth” adds little
or nothing to the quality of life. In fact it is because “…getting the economy going” is the top priority that the quality of life is suffering. Many people do not get a satisfactory share of the wealth, jobs or resources
that there is much drug abuse, crime and social breakdown, or that stress, anxiety and
depression are now possibly the most common illnesses. Most people work far harder than would be needed in a sane society. Large numbers of
young people will never be able to afford a house. There is little or no investment in the development of community or cooperative institutions. Neo-liberal doctrine advocates that all must compete against each
It is evident that
other as self-interested individuals for as much wealth as possible, when the sensible way for humans to relate to each other is via cooperation, sharing, giving and nurturing.
social attitudes are becoming more selfish and increasing numbers of people believe the future
will be worse than the present. Most of this is due to allowing the market to become the dominant determinant of what happens in society. Market forces drive out good social
values and behaviour, because they make us focus only on competing to maximise self interest. There is no place in markets for giving, generosity, care, collectivism or concern for the public good. In addition when
market forces are freed to determine what happens then what is developed is what will maximize the profits of those few with most capital, not what will most benefit society. It is not possible to have a good
society unless we make sure that considerations of morality, justice, the public good and environmental sustainability are the primary determinants of what happens. This means what is done must be basically
determined by rational collective discussion of what is needed, just and ecologically wise… again implying a need for fundamental economic change.
Economic growth fuels China’s rise – causes them to act in accordance with
offensive realism which causes SCS expansionism and territorial conflicts – decks
heg
Mearsheimer, 14 - (John J., the R. Wendell Harrison Distinguished Service Professor of
Political Science at the University of Chicago, "Can China Rise Peacefully?," National Interest,
10-25-2014, http://nationalinterest.org/commentary/can-china-rise-peacefully-10204,//BR/)
If China continues its striking economic growth over the next few decades, it is likely to act in
accordance with the logic of offensive realism, which is to say it will attempt to imitate the United
States. Specifically, it will try to dominate Asia the way the United States dominates the Western
Hemisphere. It will do so primarily because such domination offers the best way to survive under
international anarchy. In addition, China is involved in various territorial disputes and the more
powerful it is, the better able it will be to settle those disputes on terms favorable to Beijing.
Furthermore, like the United States, a powerful China is sure to have security interests around the globe, which will prompt it to develop the capability to project military power into regions far beyond Asia. The
Persian Gulf will rank high on the new superpower’s list of strategically important areas, but so will the Western Hemisphere. Indeed, China will have a vested interest in creating security problems for the United
States in the Western Hemisphere, so as to limit the American military’s freedom to roam into other regions, especially Asia. Let us consider these matters in greater detail. Chinese Realpolitik If my theory is
correct,China will seek to maximize the power gap with its neighbors, especially larger countries like India, Japan, and Russia. China will
want to make sure it is so powerful that no state in Asia has the wherewithal to threaten it. It is unlikely that China
will pursue military superiority so that it can go on a rampage and conquer other Asian
countries. One major difference between China and the United States is that America started out
as a rather small and weak country located along the Atlantic coastline that had to expand
westward in order to become a large and powerful state that could dominate the Western Hemisphere. For the United States,
conquest and expansion were necessary to establish regional hegemony. China, in contrast, is
already a huge country and does not need to conquer more territory to establish itself as a
regional hegemon on a par with the United States. Of course, it is always possible in particular circumstances that Chinese leaders will conclude that it is imperative to attack another country
to achieve regional hegemony. It is more likely, however, that China will seek to grow its economy and become so powerful that it
can dictate the boundaries of acceptable behavior to neighboring countries, and make it clear they will pay a substantial
price if they do not follow the rules. After all, this is what the United States has done in the Western Hemisphere. For example, in 1962, the Kennedy administration let both Cuba and the Soviet Union know that it
would not tolerate nuclear weapons in Cuba. And in 1970, the Nixon administration told those same two countries that building a Soviet naval facility at Cienfuegos was unacceptable. Furthermore, Washington
has intervened in the domestic politics of numerous Latin American countries either to prevent the rise of leaders who were perceived to be anti-American or to overthrow them if they had gained power. In short,
the United States has wielded a heavy hand in the Western Hemisphere. A much more powerful China can also be expected to try to push the United States out of the Asia-Pacific region, much as the United States
pushed the European great powers out of the Western Hemisphere in the nineteenth century. We should expect China to devise its own version of the Monroe Doctrine, as imperial Japan did in the 1930s. In fact,
we are already seeing inklings of that policy. For example, Chinese leaders have made it clear they do not think the United States has a right to interfere in disputes over the maritime boundaries of the South China
Sea, a strategically important body of water that Beijing effectively claims as its own. China also objected in July 2010 when the United States planned to conduct naval exercises in the Yellow Sea, which is located
between China and the Korean Peninsula. In particular, the U.S. Navy planned to send the aircraft carrier USS George Washington into the Yellow Sea. Those maneuvers were not directed at China; they were
aimed instead at North Korea, which was believed to have sunk a South Korean naval vessel, the Cheonan, in the Yellow Sea. However, vigorous protests from China forced the Obama administration to move the
exercises out of the Yellow Sea and farther east into the Sea of Japan. Sounding a lot like President Monroe, a Chinese spokesperson succinctly summed up Beijing’s thinking: “We firmly oppose foreign military
vessels or planes entering the Yellow Sea and other waters adjacent to China to engage in activities that would impact on its security and interests.” More generally, there is considerable evidence that Chinese
leaders would like to develop the capability to push the U.S. Navy beyond the “first island chain,” which is usually taken to include the Greater Sunda Islands, Japan, the Philippines, and Taiwan. If this were to
happen, China would be able to seal off the East China Sea, the South China Sea, and the Yellow Sea, and it would be almost impossible for the U.S. Navy to reach Korea in the event of war. There is even talk in
China about eventually pushing the U.S. Navy beyond the “second island chain,” which runs from the eastern coast of Japan to Guam and then down to the Moluccan Islands. It would also include the small island
groups like the Bonin, Caroline, and Marianas Islands. If the Chinese were successful, Japan and the Philippines would be cut off from American naval support. These ambitious goals make good strategic sense for
China (although this is not to say China will necessarily be able to achieve them). Beijing should want a militarily weak and isolated India, Japan, and Russia as its neighbors, just as the United States prefers a
militarily weak Canada and Mexico on its borders. What state in its right mind would want other powerful countries located in its region? All Chinese surely remember what happened over the last century when
why would a powerful China accept U.S. military forces operating in its
Japan was powerful and China was weak. Furthermore,
backyard? American policymakers object when other great powers send military forces into the
Western Hemisphere, because they view those foreign forces as potential threats to American
security. The same logic should apply to China. Why would China feel safe with U.S. forces
deployed on its doorstep? Following the logic of the Monroe Doctrine, would not China’s security be better served by pushing the American military out of the Asia-Pacific region? All
Chinese surely remember what happened in the hundred years between the First Opium War (1839–42) and the end of World War II (1945), when the United States and the European great powers took advantage
Are the
of a weak China and not only violated its sovereignty but also imposed unfair treaties on it and exploited it economically. Why should we expect China to act differently than the United States?
Chinese more principled than we are? More ethical? Are they less nationalistic? Less
concerned about their survival? They are none of these things, of course, which is why China is
likely to follow basic realist logic and attempt to become a regional hegemon in Asia. Although maximizing its
prospects of survival is the principal reason China will seek to dominate Asia, there is another reason, related to Beijing’s territorial disputes with some of its neighbors. As Taylor Fravel points out, China has
managed to settle most of its border conflicts since 1949—seventeen out of twenty-three—in good part because it has been willing to make some significant concessions to the other side. Nevertheless, China has six
outstanding territorial disagreements, and there is little reason—at least at this juncture—to think the involved parties will find a clever diplomatic solution to them. Probably China’s most important dispute is
over Taiwan, which Beijing is deeply committed to making an integral part of China once again. The present government on Taiwan, however, believes it is a sovereign country and has no interest in being
reintegrated into China. Taiwanese leaders do not advertise their independence, for fear it will provoke China to invade Taiwan. In addition, China has ongoing disputes with Vietnam over control of the Paracel
China
Islands in the South China Sea, and with Brunei, Malaysia, the Philippines, Taiwan, and Vietnam over the Spratly Islands, which are also located in the South China Sea. More generally,
maintains that it has sovereignty over almost all of the South China Sea, a claim disputed not only by its neighbors but by the United States as
well. Farther to the north in the East China Sea, Beijing has a bitter feud with Japan over who controls a handful of small islands that Tokyo calls the Senkaku Islands and China labels the Diaoyu Islands. Finally,
China has land border disputes with Bhutan and India. In fact, China and India fought a war over the disputed territory in 1962, and the two sides have engaged in provocative actions on numerous occasions since
then. For example, New Delhi maintains there were 400 Chinese incursions into Indian-controlled territory during 2012 alone; and in mid-April 2013, Chinese troops—for the first time since 1986—refused to
return to China after they were discovered on the Indian side of the Line of Actual Control. It appears that China has been stepping up its cross-border raids in recent years in response to increased Indian troop
with the apparent difficulty of resolving them through the give-and-take of diplomacy, the best
way for China to settle them on favorable terms is probably via coercion. Specifically, a China that is much more powerful than
any of its neighbors will be in a good position to use military threats to force the other side to accept a deal largely on China’s terms. And if that does not work, China can always unsheathe the sword and go to war
coercion or the actual use of force is the only plausible way China is going to
to get its way. It seems likely that
regain Taiwan. In short, becoming a regional hegemon is the best pathway for China to resolve its
various territorial disputes on favorable terms. It is worth noting that in addition to these territorial disputes, China might become
embroiled in conflict with its neighbors over water. The Tibetan Plateau, which is located within China’s borders, is the third-
largest repository of freshwater in the world, ranking behind the Arctic and Antarctica. Indeed, it is sometimes referred to as the “third pole.” It is
also the main source of many of Asia’s great rivers, including the Brahmaputra, the Irrawaddy, the Mekong, the Salween, the Sutlej, the Yangtze, and the
Yellow. Most of these rivers flow into neighboring countries, where they have a profound effect on the daily lives of many millions of people. In recent years, Beijing has shown much
interest in rerouting water from these rivers to heavily populated areas in eastern and northern
China. Toward that end, China has built canals, dams, irrigation systems, and pipelines. This plan is in its early stages and has
yet to change the flow of these rivers in a meaningful fashion. But the potential for trouble is substantial, because the neighboring countries downstream are likely to see a marked reduction in their water supply
the Chinese are interested in diverting the
over time, which could have devastating economic and social consequences. For example,
Brahmaputra River northward into the dying Yellow River. If this happens, it would cause major
problems in India and especially in Bangladesh. China is also working to redirect water from the Mekong River, a diversion that is almost certain to
cause big problems in Southeast Asian countries like Cambodia, Laos, Thailand, and Vietnam. In
its efforts to begin rerouting the rivers flowing out of the Tibetan Plateau, China has acted unilaterally and shown little interest in
building international institutions that can help manage the ensuing problems. Given that water is becoming an
increasingly scarce resource in Asia, this problem is likely to get worse with time and, given the enormous stakes involved, might even lead to war between China and one or more of its neighbors. In addition to
a rising China will have strategic interests outside of Asia, just as the United States
pursuing regional hegemony,
has important interests beyond the Western Hemisphere. In keeping with the dictates of
offensive realism, China will have good reason to interfere in the politics of the Americas so as to
cause Washington trouble in its own backyard, thus making it more difficult for the U.S. military to move freely around the world. During the Cold War, the
Soviet Union formed a close alliance with Cuba in good part for the purpose of interfering in America’s backyard. In the future, relations between the United States and a country like Brazil will perhaps worsen,
creating an opportunity for China to form close ties with Brazil and maybe even station military forces in the Western Hemisphere. Additionally, China will have powerful incentives to forge ties with Canada and
Mexico and do whatever it can to weaken America’s dominance in North America. Its aim will not be to threaten the American homeland directly, but rather to distract the United States from looking abroad and
the Soviets tried to put nuclear-armed missiles in Cuba in 1962, had more than 40,000 troops in Cuba that same year, and also provided
Cuba with a wide variety of sophisticated conventional weapons. And do not forget that the United States already has a huge military presence in China’s backyard. China will obviously
want to limit America’s ability to project power elsewhere, in order to improve Beijing’s
prospects of achieving regional hegemony in Asia. However, China has other reasons for wanting to pin down the United States as much as possible in the
Western Hemisphere. In particular, China has major economic and political interests in Africa, which seem likely to increase in the future. Even more important, China is heavily dependent on oil from the Persian
Gulf, and that dependence is apt to grow significantly over time. China, like the United States, is almost certain to treat the Persian Gulf as a vital strategic interest, which means Beijing and Washington will
eventually engage in serious security competition in that region, much as the two superpowers did during the Cold War. Creating trouble for the United States in
the Western Hemisphere will limit its ability to project power into the Persian Gulf and Africa. To
take this line of analysis a step further, most of the oil that China imports from the Gulf is transported by sea. For all the
talk about moving that oil by pipelines and railroads through Myanmar and Pakistan, the fact is
that maritime transport is a much easier and cheaper option. However, for Chinese ships to reach the Gulf as well as Africa from China’s
major ports along its eastern coast, they have to get from the South China Sea into the Indian Ocean, which are separated by various Southeast Asian countries. The only way for
Chinese ships to move between these two large bodies of water is to go through three major passages. Specifically, they can go through the Strait of
Malacca, which is surrounded by Indonesia, Malaysia, and Singapore, or they can go farther south and traverse either the
Lombok or the Sunda Strait, each of which cuts through Indonesia and leads into the open waters of the Indian Ocean just to the northwest of Australia. Chinese ships then have to
traverse the Indian Ocean and the Arabian Sea to reach the Persian Gulf. After that, they have to
return to China via the same route. Chinese leaders will surely want to control these sea lines of
communication, just as the United States emphasizes the importance of controlling its primary sea
routes. Thus, it is hardly surprising that there is widespread support in China for building a blue-water navy, which would allow China to project power around the world and control its main sea lines of
communication. In brief, if China continues its rapid economic growth, it will almost certainly
They will intervene in these growth driven conflicts specifically – they fear opting
out would kill credibility
Keck 14 – citing John Mearsheimer, professor of IR - (Zachary, US-China Rivalry More
Dangerous Than Cold War?, http://thediplomat.com/2014/01/us-china-rivalry-more-
dangerous-than-cold-war/,//BR/)
The prominent realist international relations scholar John Mearsheimer says there is a greater possibility of the U.S. and China
going to war in the future than there was of a Soviet-NATO general war during the Cold War. Mearsheimer made the comments at a
lunch hosted by the Center for the National Interest in Washington, DC on Monday. The lunch was held to discuss Mearsheimer’s
recent article in The National Interest on U.S. foreign policy towards the Middle East. However, much of the conversation during the
Q&A session focused on U.S. policy towards Asia amid China’s rise, a topic that Mearsheimer addresses in greater length in the
updated edition of his classic treatise, The Tragedy of Great Power Politics, which is due out this April. In contrast to the Middle
East, which he characterizes as posing little threat to the United States, Mearsheimer said that the U.S. will face a
tremendous challenge in Asia should China continue to rise economically. The University of Chicago
professor said that in such a scenario it is inevitable that the U.S. and China will engage in an intense
strategic competition, much like the Soviet-American rivalry during the Cold War. While stressing that he didn’t
believe a shooting war between the U.S. and China is inevitable, Mearsheimer said that he
believes a U.S.-China Cold War will be much less stable than the previous American-Soviet one.
His reasoning was based on geography and its interaction with nuclear weapons. Specifically, the center of gravity of the
U.S.-Soviet competition was the central European landmass. This created a rather stable situation as,
according to Mearsheimer, anyone that war gamed a NATO-Warsaw conflict over Central Europe understood that it would quickly
turn nuclear. This gave both sides a powerful incentive to avoid a general conflict in Central Europe
as a nuclear war would make it very likely that both the U.S. and Soviet Union would be
“vaporized.” The U.S.-China strategic rivalry lacks this singular center of gravity.
Instead, Mearsheimer identified four potential hotspots over which he believes the U.S. and China
might find themselves at war: the Korean Peninsula, the Taiwan Strait and the South and East
China Seas. Besides featuring more hotspots than the U.S.-Soviet conflict, Mearsheimer implied that he felt that
decision-makers in Beijing and Washington might be more confident that they could engage in a
shooting war over one of these areas without it escalating to the nuclear threshold. For instance, he
singled out the Sino-Japanese dispute over the Senkaku/Diaoyu Islands, of which he said there was a very real
possibility that Japan and China could find themselves in a shooting war sometime in the next
five years. Should a shooting war break out between China and Japan in the East China Sea, Mearsheimer said he believes the
U.S. will have two options: first, to act as an umpire in trying to separate the two sides and
return to the status quo ante; second, to enter the conflict on the side of Japan. Mearsheimer said that
he thinks it’s more likely the U.S. would opt for the second option because a failure to do so would
weaken U.S. credibility in the eyes of its Asian allies. In particular, he believes that America trying to act as a
mediator would badly undermine Japanese and South Korean policymakers’ faith in America’s extended deterrence. Since the
U.S. does not want Japan or South Korea to build their own nuclear weapons, Washington
would be hesitant to not come out decisively on the side of the Japanese in any war between
Tokyo and Beijing. Mearsheimer did add that the U.S. is in the early stages of dealing with a rising China, and the full threat
would not materialize for at least another ten years. He also stressed that his arguments assumed that China
will be able to maintain rapid economic growth. Were China’s growth rates to
streamline or even turn negative, then the U.S. would remain the preponderant
power in the world and actually see its relative power grow through 2050. In
characteristically blunt fashion, Mearsheimer said that he hopes that China’s economy falters or
collapses, as this would eliminate a potentially immense security threat for the
United States and its allies. Indeed, Mearsheimer said he was flabbergasted by Americans and
people in allied states who profess wanting to see China continue to grow economically. He
reminded the audience that at the peak of its power the Soviet Union possessed a much smaller GDP
than the United States. Given that China has a population size over four times larger than
America’s, should it reach a GDP per capita that is comparable to Taiwan or Hong Kong today, it
will be a greater potential threat to the United States than anything America has previously dealt
with.
Pollution is destroys bio-d, causes warming and CCP instability – turns the aff
Albert and Xu, 16 - (Elenanor, and Beina, reporters for CFR, "China's Environmental Crisis,"
Council on Foreign Relations, 1-18-2016, http://www.cfr.org/china/chinas-environmental-
crisis/p12608,//BR/)
Introduction China’s environmental crisis is one of the most pressing challenges to emerge from the
country’s rapid industrialization. Its economic rise, in which GDP grew on average 10 percent
each year for more than a decade, has come at the expense of its environment and public health.
China is the world’s largest source of carbon emissions, and the air quality of many of its major
cities fails to meet international health standards. Life expectancy north of the Huai River is 5.5 years lower than in the south due
to air pollution (life expectancy in China is 75.3 according to 2013 UN figures). Severe water contamination and scarcity have compounded land
deterioration. Environmental degradation threatens to undermine the country’s growth and exhausts
public patience with the pace of reform. It has also bruised China’s international standing and
endangered domestic stability as the ruling party faces increasing scrutiny and public
discontent. More recently, amid waning economic growt
h, leaders in Beijing appear more determined to institute changes to stem further degradation. A History of Pollution While China’s economic
boom has greatly accelerated the devastation of its land and resources, the roots of its environmental problem
stretch back centuries. Dynastic leaders who consolidated territory and developed China’s economy exploited natural resources in ways that
contributed to famines and natural disasters, writes CFR’s Elizabeth C. Economy in The River Runs Black: The Environmental Challenge to China's
Future. “China’s current environmental situation is the result not only of policy choices made today but also of attitudes, approaches, and institutions
that have evolved over centuries,” Economy writes. It wasn’t until the 1972 United Nations Conference on the Human Environment that China began to
develop environmental institutions. It dispatched a delegation to the conference in Stockholm, but by then the country’s environment was already in
dire straits. Economic reforms in the late 1970s that encouraged development in rural industries
further exacerbated the problem. Chinese leader Deng Xiaoping implemented a series of reforms that diffused authority to the
provinces, creating a proliferation of township and village enterprises (TVEs). By 1997, TVEs generated almost a
third of national GDP, though TVEs have since declined in relative importance to the Chinese economy. But local governments
were difficult to monitor and seldom upheld environmental standards. Today, with a transitioning
Chinese economy fueled by large state-owned enterprises, environmental policies remain
difficult to enforce at the local level, where officials often priotize hitting economic targets over
environmental concerns. Despite the government’s stated goals, actual change to environmental policies and
effective implementation will require revisiting state-society and state-market relations and
China’s bureaucratic power structure, writes CFR’s Yanzhong Huang. China’s modernization has lifted hundreds of millions out of
poverty and created a booming middle class. In some ways, the country’s trajectory of industrialization is not unlike those of other modernizing
nations, such as the UK in the early nineteenth century. But experts sayChina's environmental footprint is far greater
than that of any other single country. How Bad Is It? China is the world’s largest emitter of
greenhouse gases, having overtaken the United States in 2007, and was responsible for 27
percent of global emissions in 2014. The country’s energy consumption has ballooned, with reports from late 2015 implying that it
consumed up to 17 percent more coal than previously reported. In January 2013, Beijing experienced a prolonged bout of
smog so severe that citizens dubbed it an “airpocalypse”; the concentration of hazardous
particles was forty times the level deemed safe by the World Health Organization (WHO). In December 2015, Beijing
issued red alerts for severe pollution—the first since the emergency alert system was established. The municipal government closed schools, limited
road traffic, halted outdoor construction, and paused factory manufacturing. At least 80 percent of China’s 367 cities with real-time air quality
monitoring failed to meet national small-particle pollution standards during the first three quarters of 2015, according to a Greenpeace East Asia
report. In December 2015, the Asian Development Bank approved a $300 million loan to help China address the capital region’s choking smog. Coal is
largely to blame for the degradation of air quality. China is the world’s largest coal producer and accounts for about half of global consumption. Mostly
burned in the north, coal provides around two thirds of China’s energy mix, however demand for it appears to be declining. China’s National Energy
Agency claimed that coal use dropped to 64.2 percent of the mix in 2014, down almost two percent from 2012. This drop in coal demand also comes as
China’s economy is slowing, with its central bank forecasting that annual growth will only expand by 6.8 percent in 2016, down from 6.9 percent a year
earlier. Still, doubts linger of China’s commitment to wean itself from coal. In 2015, China’s coal power plant capacity increased by 55 percent in the
first six months, 155 new coal-fired plants were approved, and China admitted that it had underreported its annual coal consumption since 2000. There
were a record 17 million new cars on the road in 2014, further contributing to China’s high emissions. Car ownership was up to 154 million, according to
China’s Ministry of Public Security,with compared to roughly 27 million in 2004, according to China’s National Bureau of Statistics. Another trend
compounding air problems has been the country’s staggering pace of urbanization, a national priority. The government aims to have more than 60
percent of the Chinese population living in cities by 2020, up from 36 percent in 2000 (53.7 percent of the population in 2015 lived in urban areas).
Rapid urbanization increases energy demands to power new manufacturing and industrial centers. Experts also cite water depletion and pollution as
among the country’s biggest environmental challenges. China is home to 20 percent of the world’s population but only 7 percent (PDF) of its fresh
water sources. Overuse and contamination have produced severe shortages, with nearly 70 percent of the country’s water supplies dedicated to
agriculture and and 20 percent of supplies used in the coal industry, according to Choke Point: China, an environmental NGO initiative. Approximately
two-thirds of China’s roughly 660 cities suffer from water shortages. Former Chinese premier Wen Jiabao has said that water shortages challenge “the
very survival of the Chinese nation.” Industry along China’s major water sources has polluted water supplies:
in 2014, groundwater supplies in more than 60 percent of major cities were categorized as “bad to very bad”
and more than a quarter of China’s key rivers are “unfit for human contact.” And lack of waste removal
and proper processing has exacerbated problems. Combined with negligent farming practices,
overgrazing, and the effects of climate change, the water crisis has turned much of China’s
arable land into desert. About 1.05 million square miles of China’s landmass are undergoing desertification, affecting more than 400
million people, according to the deputy head of China’s State Forestry Administration. Water scarcity, pollution, and
desertification are reducing China’s ability to sustain its industrial output and produce food and
drinkable water for its large population. Cost of Environmental Damage Environmental depredations pose a
serious threat to China’s economic growth, costing the country roughly 3 to 10 percent of its
gross national income, according to various estimates. China’s Ministry of Environmental Protection calculates estimates the cost of
pollution at around 1.5 trillion RMB ($227 billion), or roughly 3.5 percent of GDP, according to 2010 figures. Due to the sensitivity of the topic, the
ministry only releases such figures intermittently. Data
on the toll of China’s pollution on public health paint a
devastating picture. Air pollution contributes to an estimated 1.2 million premature deaths in
China annually. Epidemiological studies conducted since the 1980s in northern China suggest that poor air quality in Chinese cities causes
significant health complications, including respiratory, cardiovascular, and cerebrovascular diseases. Pollution has also been linked to the proliferation
of acute and chronic diseases; estimates suggest that around
11 percent of digestive-system cancers in China may
stem from unsafe drinking water. Recent studies have reported that emissions from China’s export industries are worsening air
pollution as far as the western United States. China’s neighbors, including Japan and South Korea, have also expressed concern over acid rain and smog
affecting their populations. Environmental ministers from the three northeast Asian countries agreed to boost cooperative efforts to curb air pollution
and to protect water quality and the maritime environment in 2014. The damage has also affected China’s economic prospects as it continues to pursue
extractive resources abroad, such as oil and other fossil fuels. Its economic partners, particularly in the developing world, face costly environmental
burdens attached with doing business with China, write CFR’s Economy and Michael Levi in By All Means Necessary, their book on China’s quest for
resources. Citizen Outrage Environmental
damage has cost China dearly, but the greatest collateral damage for the ruling
Communist Party has likely been growing social unrest. Demonstrations have proliferated as citizens
gain awareness of the health threats and means of organized protest (often using social media). In 2013, Chen
Jiping, former leading member of the party’s Committee of Political and Legislative Affairs said that environmental issues are a major reason for “mass
incidents” in China—unofficial gatherings
of one hundred or more that range from peaceful protest to
rioting. Environmental protests in rural and urban areas alike—such as those in Guangdong, Shanghai, Ningbo,
and Kunming—are increasing in frequency. The number of “abrupt environmental incidents”, including
protests, in 2013 rose to 712 cases, a 31 percent uptick from the previous year.
AT: PEACEFUL RISE
All your authors have been fooled – China is disguising the hostile nature of its rise
so they can win in the long run – every word is underlined for a reason
Mearsheimer, 14 - (John J., the R. Wendell Harrison Distinguished Service Professor of
Political Science at the University of Chicago, "Can China Rise Peacefully?," National Interest,
10-25-2014, http://nationalinterest.org/commentary/can-china-rise-peacefully-10204,//BR/)
Why China Cannot Disguise Its Rise One might argue that, yes, China is sure to attempt to dominate Asia, but
there is a clever strategy it can pursue to achieve that end peacefully. Specifically, it should follow Deng
Xiaoping’s famous maxim that China keep a low profile and avoid becoming embroiled in international
conflicts as much as possible. His exact words were “Hide our capacities and bide our time, but also get some things
done.” The reason it makes sense for China to bide its time is that if it avoids trouble and merely
continues growing economically, it will eventually become so powerful that it can just get its way
in Asia. Its hegemony will be a fait accompli. But even if that does not happen and China
eventually has to use force or the threat of force to achieve hegemony and resolve its outstanding
disputes, it will still be well positioned to push its neighbors and the U nited States around. Starting
a war now, or even engaging in serious security competition, makes little sense for Beijing.
Conflict runs the risk of damaging the Chinese economy; moreover, China’s military would not fare well against
the United States and its current allies. It is better for China to wait until its power has increased and it is
in a better position to take on the American military. Simply put, time is on China’s side, which
means it should pursue a low-key foreign policy so as not to raise suspicion among its neighbors.
In practice, this means China should do whatever it can to signal to the outside world that it has
benign intentions and does not plan to build formidable and threatening military forces. In
terms of rhetoric, Chinese leaders should constantly emphasize their peaceful intentions and
make the case that China can rise peacefully because of its rich Confucian culture. At the same
time, they should work hard to keep Chinese officials from using harsh language to describe the
United States and other Asian countries, or from making threatening statements toward them.
AT: NO IMPACT
China won’t turn inward – empirics, nationalism and territorial conflicts
Morimoto, 14 - (Andy, Chicago Council on Global Affairs, master’s degree from The University
of Chicago, "Can China Fall Peacefully?," National Interest, 11-19-2014,
http://nationalinterest.org/feature/can-china-fall-peacefully-11703,//BR/)
As the Wall Street Journal recently reported, China’s growth will decline sharply in the coming decade, from 7.7 percent in 2013 to 3.9 percent between 2020 and 2025. Some
analysts are more pessimistic, projecting future growth rates as low as 1.6 or 1.7 percent. (To put these numbers in perspective, China grew at an average annual rate of 10.2
percent from 1980 to 2011.) These trends have led some at the National Interest to claim that China is headed for collapse and that we may be
approaching the end—not a delay—of China’s economic rise. What will be the
geopolitical implications for China, its neighbors and the United States if the Chinese economy
tanks? Would China be taken off of its supposed collision course, or would conflict remain unavoidable? Let’s start with a slight, but necessary, caveat: we have no
empirical evidence for future events and, therefore, need theories to answer these questions. That being said, there
are two that may be particularly helpful. The first theory assumes that an economic downturn in
China will force the Chinese Communist Party’s leadership to turn inwards, leaving little time and energy to pick fights with its Pacific
neighbors (let alone the United States). Chinese leaders will instead devote their attention to domestic policies, hoping to get their “house” in order. Unfortunately,
given the scale and scope of China’s current international disputes, this story is unlikely to pass.
Remember that China has at least five outstanding territorial disagreements : with Vietnam over
control of the Paracel Islands; with Brunei, Malaysia, the Philippines, Taiwan and Vietnam over the Spratly
Islands; with Japan over the Senkaku Islands; with Brunei and India over disputed land borders; and with Taiwan over the issue of
independence. It’s difficult to imagine that these simmering disputes would be cooled by a
weakened Chinese economy. Which brings us to our second theory—one that I believe is more likely to materialize. This theory posits that an
economic downturn in China will cause a crisis in legitimacy for the Chinese Communist Party, who will in
turn point to external threats to bolster its internal legitimacy. China’s leaders, in other words,
will play the nationalism card, perhaps provoking an international conflagration in one or more
of the aforementioned flashpoints. We’ve seen this movie before. Following World War II, the Chinese economy
was in shambles, yet China’s leadership did not turn inward, but rather to the Korean peninsula.
Similarly, during the economic catastrophe that was the Cultural Revolution, China’s
leaders turned to Vietnam. Zhang Lifan, a Chinese historian, explains that “historically, during every period with many
deep conflicts within the country, there has been a surge of anti-foreign sentiments from the
party.” Things are no different today. This year alone, China’s state-run newspaper, The People’s Daily, published forty-two articles blaming China’s domestic problems on
foreign forces. Even in the midst of this month’s APEC meeting (which is typically a golden opportunity to show off diplomatic credentials and feign bridge-building
Chinese
enthusiasm), President Xi Jinping publicly praised a young blogger who is now famous for his nationalistic writings—some of which border on xenophobia.
leaders won’t be able to easily turn off the nationalist anger that is created. And if China’s
economy does indeed sink, we should expect more of this strident nationalism, not less. Unfortunately,
it isn’t hard to picture a scenario in which a nationalist fervor sweeps across
China, leading to escalation, miscalculation or an accidental conflict.
AT: ECON INTERDEPENDENCE
It doesn’t apply to China
Navarro, 16 - (Peter, professor at the University of California-Irvine. He is the author of
Crouching Tiger: What China’s Militarism Means for the World, "Mearsheimer on Strangling
China & the Inevitability of War," Huffington Post, 3-10-2016,
http://www.huffingtonpost.com/peter-navarro-and-greg-autry/mearsheimer-on-
strangling_b_9417476.html,//BR/)
As for the idea that economic engagement itself is a viable peace strategy, Professor Mearsheimer
sees this as decidedly counter-historical: Many people find it hard to believe that countries that
engage in security competition also continue to trade with each other economically. But if you look at
Europe before World War I— and, indeed, if you look at Europe before World War II, what you see is that there was a great deal of economic interdependence on the continent
and with Britain before both world wars. So I believe that if China continues to grow economically, there will still be much economic intercourse between China and its
neighbors and China and the United States. And I still think that you will have a lot of potential for trouble between these two countries. And don’t forget, even though you had
If you look at Europe
all this economic intercourse between World War I and World War II, you still got World War I and you still got World War II.
before World War I, there were extremely high levels of economic interdependence between
Germany and virtually all of its neighbors, certainly between Germany and Russia, Germany and
France, and Germany and Britain, these were the main players. And despite this economic
interdependence, these high levels of economic interdependence, you still got World War I. Another
example would be the period before World War II. The Germans invaded the Soviet Union on June 22, 1941. And for the previous two years, Germany and the Soviet Union—
there
this is Nazi Germany and Stalin’s Soviet Union— had been close allies in Europe. In fact, in September 1939 they had invaded Poland together and divided it up. So
was a great deal of economic intercourse between Nazi Germany and the Soviet Union between 1939 and
22 June, 1941. Nevertheless, that economic interdependence did not prevent World War II from escalating into a
major war between Moscow and Berlin. And, in fact, there are all sorts of stories about the German forces invading the Soviet Union and
passing trains that were going into the Soviet Union that were carrying German goods, and trains coming from the Soviet Union towards Germany that were carrying Soviet raw
Closely related
materials and some Soviet goods as well. So there was economic interdependence between Germany and the Soviet Union and yet you still got a war.
to the argument that economic engagement will prevent war between the US and China is the
economic interdependence argument. In Professor Mearsheimer’s world that’s a dangerous
gamble because politics and nationalism can often trump economics. I’ve talked about the fact that I think China
cannot rise peacefully, probably a hundred times; and the argument that is used against me most often is clearly the economic interdependence argument, and
it goes like this: The United States and China, and China and its neighbors are all hooked on capitalism and
everybody is getting rich in this world of great economic interdependence; and nobody in their
right mind would start a war because you would, in effect, be killing the goose that lays the
golden egg. So that what is happening here is that economic interdependence has created a situation where it’s a firm basis for peace. I think this is
wrong. Let me explain. I think there’s no doubt that there are going to be certain circumstances where
economic interdependence will be enough to tip the balance in favor of peace; but I think as a
firm basis for peace, it won’t work because there will be all sorts of other situations where
politics trumps economics. People who are making the economic interdependence argument are
basically saying that economics trumps politics. There are no political differences that are salient enough, right, to override those
economic considerations? Again, there will be cases where that’s true. But there will be many more cases, in my opinion,
where political considerations are so powerful, so intense, that they will trump
economic considerations. And just to give you an example or two. Taiwan: The Chinese have made it clear that if Taiwan were to declare its
independence now, they would go to war against Taiwan, even though they fully understand that that would have major negative economic consequences for Beijing. They
understand that, but they would go to war anyway. Why? Because from a political point of view, it is so important to make Taiwan a part of China, that they could not tolerate
Taiwan declaring its independence. Another example is the conflict in the East China Sea between Japan and China, over the Diaoyu or Senkaku Islands. It is possible to imagine
those two countries, China and Japan, actually ending up in a shooting match over a bunch of rocks in the East China Sea. How can this possibly be because it would threaten the
economic prosperity of both countries? It would have all sorts of negative economic consequences. But the fact is, from the Chinese point of view and the Japanese point of view,
these rocks are sacred territory. The politics of the situation are such that it is conceivable that should a conflict arise, it will escalate into a war because politics will trump
economics. One of the equally enduring themes of American foreign policy is that the existence of nuclear weapons will insure the peace in Asia. However, Professor
Mearsheimer is not so sure of that at all - and makes a powerful case the existence of nuclear weapons actually opens the door to more limited conflicts in Asia over key
The existence of nuclear weapons makes it virtually impossible for the
flashpoints like Korea and the Senkaku Islands.
United States and China to end up fighting World War III, in other words, a large conventional war. I think that the presence of
nuclear weapons makes that one scenario impossible; but I do think it’s possible that the United States and China could end up in a limited war over, let’s say, Taiwan, over
Korea, over the Senkaku or Diaoyu Islands in the East China Sea, or over a series of islands in the South China Sea. These are more limited conflicts, and I think that nuclear
I think that nuclear weapons are a force for peace between the United
weapons do not make them impossible. So
States and China in the sense that they rule out World War III; but there are all sorts of other kinds of war, more limited in
nature, that I believe are not ruled out by the presence of nuclear weapons.
COLLAPSE INEV
It’s coming now – stock market
Goldberg, 16 - (Ken, contributor on Real Money Silver, taught over 800 traders, appeared on CNBC,
and been recommended by Technical Analysis of Stocks and Commodities Magazine, "China's stock
market is about to crash," TheStreet, 3-25-2016, https://www.thestreet.com/story/13503606/1/china-s-
stock-market-is-about-to-crash-sell-before-it-s-too-late.html,//BR/)
Chinese stocks are poised to collapse, comprehensive technical analysis reveals. For the Shanghai
Composite index, risk has returned to the highest level since at least December, when the index finished a
four-month corrective rise to 3650 that saw it gain about 25% from the August low. That rise is labeled as wave (B) in this daily bar
chart, and it took the index right into the pink selling oval that was forecast at the August green-
circle low. [Chart Omitted] Note how the up/down/up rise off the recent January low appears as a smaller version of the pattern
from August to December. This corrective form is about to lead to new lows in the Shanghai Composite, with an initial target of
2000 +/-250, and even more bearish potential to eventual support near 1250 +/-100. This lower zone has been forecast by the
decision support engine since last summer, when we warned that the rise in Chinese stocks was about to end. In that analysis, on
July 6, we looked at the iShares FTSE/Xinhua China 25 Index (FXI) , which tracks shares of the largest Chinese companies, and
warned investors to exit all Chinese stocks before they made an eventual test or break of the 2008 lows. The iShares FTSE/Xinhua
China 25 Index closed July 6 at $43.84. By the time it hit its February low close of $28.44, it had lost 35%. It is likely to lose much
more value from recent levels of more than $33. It's likely to target the $14 +/-$2 zone, which would end the entire corrective
pattern from the 2007 peak. This would coincide with a reading of 1250 +/-100 on the Shanghai Composite. All of this means it's
time for investors to exit all long exposure to China, especially any positions using leverage or
margin, as the daily stochastics have just crossed down, triggering a new sell signal. Another indicator
of imminent decline is the present struggle at the upper Bollinger Band (purple dashed line at 3000). As mentioned above, the 2000
area is where initial target support awaits, but depending on the decision support engine's analysis at that time, buying might not be
indicated at that round-number psychological level. So, don't lock your sights on any exact price. Rather, stay tuned for further
updates in these pages, or by joining us in our live-market Trading Room, where we keep members up to date on all markets in real
time. This second chart is the monthly bar duration of the chart above, showing a similar picture as the iShares FTSE/Xinhua China
25 Index chart in the July article. [Chart Omitted] The huge crash into the 2008 low has been followed by only
an up/down/up rise. The decline since last spring is only part, but not all, of the final wave of
selling, as the crowd of Chinese speculators get wiped from what they believed to be easy money
markets. Do yourself the same favor you could have done at the decision support engine's July
warning: Exit all Chinese stocks now.
[Include impact D]
IMPACT – ASIAN PROLIF
Asia pivot demanded more unilateral action – any trade-offs destroy security
strategies in Asia
Jeremi Suri & Benjamin Valentino 16 – Jeremi is a Distinguished Professor for
Global Leadership, History, and Public Policy, University of Texas at Austin and
Benjamin is an Associate Professor of Government, Dartmouth College
(“Sustainable Security: Rethinking American National Security Strategy,” 2016,
http://tobinproject.org/sites/tobinproject.org/files/assets/Sustainable%20Securit
y%20-%20All%20Chapters.pdf) hk
Despite the enormous influence of Gates, Panetta, and Mullen, these figures failed to make serious headway on reform. American
policy-makers in the Bush and Obama administrations were more cautious about intervening in foreign
conflicts after long frustrating months of combat in Afghanistan and Iraq, but they have not shown any serious willingness to
reduce costly inherited commitments around the world. If anything, the “Asian pivot” has created a new
obligation to increase the American land, sea, and air presence in Asia, while maintaining
military hegemony in the Persian Gulf, Western Europe, and all major waterways around the globe. Civil wars and territorial
disputes throughout East and South Asia, North Africa, and the Middle East threaten to suck in further American military forces,
based on security guarantees that the United States has inherited, in some cases, from the early years of the Cold War. Resource
pressures demand some degree of American retrenchment, but political calculations push
policy-makers to avoid all the difficult trade-offs. Without attention to tradeoffs, there can be no
coherent strategy.
[Include Impact D]
**AFF
AT: NO IMPACT TO HEG
No impact to heg - multiple cycles of rebalancing power disprove
Klieman 15- professor of Political Science at Tel-Aviv University with a PhD in IR from Johns
Hopkins (Aharon,“Pushing Back: The Balance and Balancing of Power,” published in the book
“Great Powers and Geopolitics,”2015, pg. 11-29)
The purpose of this essay has not been to reinvent the balance of power but to refine the concept, making it possible to reach several
main conclusions. First and foremost, we are nowhere near the “one world” Kishori Mahbubani18 and others profess to see as the
“new global civilization”. Yet, by the same token, the global order is not breaking down or coming
apart; nor is the cause of global governance orphaned. Even were the so-called “disengagers” in the
United States policy establishment to carry through on their pledge—or threat—to pull back and to pursue a less activist strategy in
foreign affairs while putting America’s own house in order. Rather, the 2015 global order—pronounced “’good
enough’ global governance” by one blogist19—is correcting itself by redressing the bipolar and
unipolar imbalances of power lasting nearly seven decades. Ours is indeed a multipolar moment.
Geopolitically, the playing field of balancing politics is becoming increasingly less exclusive and far more crowded, made so by
additional stakeholders vying among themselves for higher status and greater leverage. Consequently, the balance of power,
and with it the chances for a more stable world, are no longer simply a question of the presence
of a solitary “peer competitor” but of comparatively smaller yet determined nations nipping and
sniping at the greater powers. A large-scale realignment being shaped, if you will, by America and Europe scaling back
and all the others pushing back. This insight is corroborated by the significant restructuring of the global order now underway. The
trend is decidedly from a strictly hierarchical system, ending in a single apex at the top of the pyramid, to a flatter, more
decentralized and egalitarian one, broadened in the middle by a growing number of middle-tier powers. Multiple balancing
can have a healthy leveling effect when stirred by selfinterest and permitted to function freely,
unfettered save for the commonality of shared insecurity and the imperative of survival. Framed in
these terms, the great global project now at hand is how to prevent exchanging one extreme for another: distancing ourselves from
the pole of over-concentration only to swing too far in the opposite direction of international lawlessness . During this latest,
current transformative phase in world history, the leveling and diffusion of power will continue.
It will be marked, inter alia, • by the salience of trade blocs and regional security regimes such as
ASEAN; • by the impressive rise of developing nations with growing importance for the global economy, like China, India,
Indonesia, and South Africa; and • by the assertiveness of confident regional actors like Brazil, Qatar and Turkey, benefiting
geopolitically from location, size or resources.
AT: TERRORISM IMPACT
BACKGROUND
Rose, PhD 7
(Andrew, December, Professor of International Business @ Haas School of Business at the
Berkeley; Research Associate of the National Bureau of Economic Research, and a Research
Fellow of the Centre for Economic Policy Research, Ph.D. from MIT, M.Phil. from Oxford
www.jstor.org/stable/pdf/30034598.pdf?_=1468704540024) //cb
TGR = Tomz, Goldstein, Rivers
Michael Tomz, Judith L. Goldstein, and Doug- las Rivers (hereafter TGR) argue that the General
Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization
(WTO), had a substantial positive effect on trade. Their paper is a critique of my article "Do We
Really Know That the WTO Increases Trade?" which appeared in this Review (2004a). Among
other things, I used a bilateral "gravity" model of trade and showed that dummy variables for
member- ship by either one or two countries in the GATT had only small effects on trade. In
essence, TGR point out that a lot of countries were not formal members of the GATT but still
participated in it as colonies, or de facto or provisional members. TGR argue that if one includes
these other types of more informal participation, one gets large positive effects. For what it's
worth, I stated in my original article that de jure accession to the GATT need not be the same as
de facto accession, but I wasn't able to quantify it and encouraged others to do so. TGR did
precisely that, at the cost of much tedious archival work. I applaud them for it and will certainly
not question its accuracy. I also like their methodological strategy, which is to follow my
empirical framework closely and rely mostly on simply adding informal partici- pation to formal
GATT membership. TGR cite my work selectively but extensively. It's a clean and effective way
to proceed. I like their paper, and have learned a lot by reading it, and thinking about the issues
it raised. All who are interested in the topic of the impact of the multilateral system on trade
should take it seriously. Still, I have concerns about the mean- ing, plausibility, and robustness
of their results. I. Sweet A few things before I get into the meat. First, I take any critique as the
most serious sign of aca- demic praise, so I thank TGR for caring enough to write their paper.
Second, there are many things in TGR with which I agree. For instance, TGR are clearly right on
a number of small data issues (e.g., coding Benin, Comoros, various colonies, etc.). I'm happy to
see that these corrections only strengthen my results. They're also right that most colonies aren't
formal members but were covered by the GATT. I should have coded them accordingly myself
(and actually intended to). Third, a note of puzzlement. When I first presented this research at
seminars, the initial reaction to my finding of GATT irrelevance was inevitably disbelief. Still,
within an hour or so, almost everyone came to the view that I'd actually found little new. That is,
once one has reflected a little, it seemed reasonable (to both me and others) that membership in
the GATT might have had little effect on trade. Why? Reasons include the following: * The GATT
made few demands on most coun- tries in terms of liberalization, since most entrants were
developing countries eligible for special and differential treatment. * Most-favored-nation status
might seem like the great prize of GATT membership. But MFN status is often given freely to
countries outside the GATT. * Tariffs have been lowered by developed coun- tries under the
auspices of the GATT. But most economists are aware of the (deplor- able) fact that nontariff
barriers (NTBs) have often been increased as substitute protection- ism. And much trade of late
has grown under the auspices of complicated preferential trade agreements that undermine the
multilateral importance of the GATT. *
TGR modelling is wrong --- misses boat on WTO membership status and
measurements
Rose, Phd, 7
(Andrew K., May 29, Professor of International Business @ Haas School of Business at the
Berkeley; Research Associate of the National Bureau of Economic Research, and a Research
Fellow of the Centre for Economic Policy Research, Ph.D. from MIT, M.Phil. from Oxford "The
GATT: It's Everywhere You Want it To Be" faculty.haas.berkeley.edu/arose/TomzR.pdf) //cb
C. Where's the Big Effect on Aggregate Trade? TGR cite my work extensively, but selec- tively. In my original
work on the GATT, I used multilateral data as a corroborating check on my bilateral results. When
I use the TGR par- ticipation variables on multilateral data as I do in Table 4, I get weak results. The coefficients are positive, but
they're economically small and have marginal statistical effects, even in a panel with over 5,000 observations. The highest esti- mate
indicates that participation in the GATT raises trade by 12 percent; but TGR's default estimate is that bilateral trade between partici-
pants is 72 percent higher. This is an issue for TGR, since they basically have never seen any signs of trade diversion. For instance, in
the default TGR results of Table 2, column 6, the "only one participates in GATT" coefficient is 0.26 (standard error of 0.06). But if
there's no trade diversion, why isn't the aggre- gate trade creation visible? After all, almost all countries
participated in the GATT. And don't forget the background fact: trade was growing 2 TGR use a specification that includes only a
single dummy variable for both formal membership and all types of informal participation. 3 Most de facto participants that
eventually joined the GATT did so shortly before it was replaced by the WTO, thereby sparing themselves a potentially much more
dif- ficult accession process. D. Where's the Dynamic Effect of Joining? In my original paper, I provided
event studies, which graphically examined the decade around the formal entry of countries into
the GATT. I found little; the ratio of aggregate trade to GDP basically didn't change much when
one examined openness starting five years before accession and continued through to five years
afterward. What happens when one examines openness around entry into informal GATT
participation? Figure 1 contains four event studies for open- ness (the ratio of exports plus imports to output) in the decade
around GATT entry (they are analogues to the event studies in my original paper). A total of 33 countries formally entered the GATT
from the outside; they are portrayed in the top left graphic. The others depict: for- malization of status for an informal participant;
entry into informal status from the outside; and exit from participation. When I study the figures, I don't see
strong evidence that openness rose during the period around either formal or informal
GATT entry. Raw openness falls somewhat when countries leave the GATT.4 But entry into the GATT- either formally or
informally-seems to have had no substantial effect on aggregate trade, and 4 This effect vanishes when standard controls are used
for openness; details are available in the Web-only version. This content downloaded from 67.194.23.54 on Sat, 16 Jul 2016 18:29:17
UTC All use subject to http://about.jstor.org/terms VOL. 97 NO. 5 ROSE: DOES THE WTO REALLY INCREASE TRADE? REPLY
2023 TABLE 2-ANALOGUE TO TOMZ, GOLDSTEIN, AND RIVERS TABLE 5: CROSS-SECTIONAL ANALYSIS, DISAGGREGATED
BY STATUS Formal- Formal- Informal- Both formal Both informal informal outsider outsider Obs. 1950 0.66 0.72 0.50 0.25 0.34
1,115 (0.12) (0.41) (0.13) (0.10) (0.16) 1955 0.79 1.19 0.74 0.39 0.42 1,468 (0.12) (0.30) (0.13) (0.11) (0.16) 1960 0.65 0.66 0.33 0.29
0.37 2,625 (0.12) (0.16) (0.11) (0.10) (0.11) 1965 0.36 0.32 0.41 0.24 0.33 3,361 (0.11) (0.17) (0.11) (0.11) (0.13) 1970 0.22 1.90 0.78
0.16 0.47 4,737 (0.13) (0.30) (0.14) (0.13) (0.19) 1975 0.07 1.06 0.53 0.07 0.47 5,354 (0.15) (0.27) (0.16) (0.15) (0.21) 1980 0.31 1.01
0.57 0.35 0.43 5,895 (0.16) (0.28) (0.17) (0.17) (0.21) 1985 0.44 0.77 0.74 0.21 0.58 6,232 (0.22) (0.43) (0.23) (0.23) (0.30) 1990
0.74 0.26 0.85 0.55 0.51 6,620 (0.30) (0.62) (0.31) (0.31) (0.41) 1995 -0.50 -0.90 -0.60 -0.68 -0.50 7,640 (0.24) (0.58) (0.27) (0.25)
(0.42) Notes: Regressand: log real trade. Robust standard errors (clustering by country-pairs) in parentheses. OLS. Regressors not
recorded: regional FTA; currency union; log distance; log product real GDP; log product real GDP p/c; common language; land
border; number landlocked; number islands; log product land area; common colonizer; currently colonized; ever col- ony; and
common country. the same is true when a country formalizes its GATT status. Why not? How can TGR believe that
participation boosts bilateral trade so much if it doesn't have a strong detectable effect on aggregate
trade? E. Where's the Effect of Participation on Trade Policy? The effect of GATT/WTO membership on trade flows was part of a
larger project of mine concerning the consequences of the multilateral trade system. I have a whole article (2004b) that argues that
the noneffect of formal membership on trade policy helps explain my nonresults of membership
on trade. Since trade policy is hard to measure, I used almost 70 measures of it. I found that
trade policy varied little between members and nonmembers, which rationalized my finding that
trade flows were unaffected by membership. What happens when you use TGR's measure of participation in place
of my measure of formal membership? Little. When I use the TGR partic- ipation variables on the multilateral panel mea- sures of
trade policy that I used in that article, I get the weak results in Table 5. There are basi- cally no detectable
differences in trade policy between outsiders and TGR participants.5 Francisco Rodriquez and Dani Rodrik
(1999) recommend simple trade-weighted tariff aver- ages as a measure of trade policy; their view is that, while flawed, average
tariffs still do a decent job of measuring trade policy. This seems sensible to me. Further, there are many hundreds of country-year
observations on tar- iffs, as measured by the ratio of import duties to imports. The top line in the Table 5 shows that countries
that participate in the GATT (either formally or informally) have higher tariffs than outsiders ,
though not significantly so. Such findings are a serious concern for the message of TGR. How can
participation affect trade if it doesn't affect trade policy? III. Conclusion To summarize, I'm queasy
about the TGR results for a number of reasons: * It is hard to believe that the GATT could
have a profound effect on developing countries and a relatively small effect on industrial
countries; * It is hard to believe that formal GATT mem- bership matters so much less for trade
than informal (especially de facto) participation in the GATT; * I don't see how entry into the
GATT (either formal or informal) could matter so much when event studies show a negligible
effect in the decade around entry; * I don't understand how GATT participation can have a large
effect on bilateral trade, no detectable trade diversion, and yet a negli- gible effect on aggregate
trade; * I don't understand how participation can have a large effect on trade with no substantial
I use only the panel measures so that I can use TGR's preferred FE estimation strategy. Others may
choose to analyze the many cross-sectional measures of trade policy available on my Web site.
AT: WTO SOLVES ASIA-PACIFIC
doesn’t deter conflict
Wettach, 13 (Taylor, Graduate Of Georgetown University’s Edmund A. Walsh School Of
Foreign Service., 4-28-2013, "Asia-Pacific: Headed towards conflict?," Global Risk Insights,
http://globalriskinsights.com/2013/04/are-2012%E2%80%B2s-tensions-indicative-of-
increased-long-term-risk-to-the-asia-pacifics-regional-architecture/
A large body of literature would suggest that the Asia-Pacific’s recent economic successes should
pave the way for long-term cooperation by linking trade to regional peace. The recognition of
mutual benefits from trade theoretically fosters peace as national interests converge, deterring
states from initiating conflict against a trading partner for fear of losing trade-associated welfare
gains. According to WTO Director-General Pascal Lamy, the Asia-Pacific has become the world’s
most integrated trading region. This growth in trade interdependence can be seen
amidst now-tense relations between the aforementioned examples. In 2011, China-
Japan trade rose 14.3% to $344.9 billion, ASEAN-China trade rose 24% to $362.3 billion, and
intra-ASEAN trade rose 15.1% to $598.2 billion. Why then, while contributing 40% of the
world’s growth and reaching peak economic integration, should the Asia-Pacific see a rise in
behavior contrary to mutually beneficial economic interests?
TURNS
TOP LEVEL LINK CARD
Increased WTO credibility from the US will trigger the impact
Sumner, 7 (Daniel, director of the University of California Agricultural Issues Center, U.S. Farm
Policy and WTO Compliance, p. 17/ms)
If the United States is seen to ignore its international obligations, its leadership role will likely
be forfeited. Furthermore, the process of defending itself in trade litigation damages the
reputation of the United States, in ways that are similar to how defending against lawsuits from
customers damages the reputation of marketing firms. Most firms decide it makes more sense to
protect the reputation of the firm by avoiding law suits from customers, even if they are able to
prevail in much of the litigation. In WTO and bilateral free trade negotiations, the position of
the United States is stronger if the United States has a reputation of complying with the existing
agreements. Conversely, if trade partners perceive that the United States does not comply with
its WTO domestic support obligations, other members have little incentive to reduce and bind
their import barriers, for which compliance is almost automatic.
HURTS WTO
China’s role in the WTO turns effectiveness
Aaronson, 10
(Susan Ariel, Winter, Associate Research Professor and 2009–2010 Policy Research Scholar,
George Washington University Elliott School. This article is a shorter version of a chapter
prepared for the forthcoming book, China in the WTO: An Early Harvest, www.nccr-
trade.org/fileadmin/user_upload/nccr-trade.ch/downloads/TIE_W10_Aaronson.pdf)
F or fifteen long years, the members of the GATT/WTO debated whether they would be better off with China as a member. Trade
policymakers understood that the international organization could not pretend to govern world trade with such an important
trading nation outside of the World Trade Organization. They wagered that China’s trade policy would become more predictable,
accessible, and transparent. Moreover, they concluded that member states could collaborate, using the WTO’s rules, to prod China to
act responsibly as a global trader. China acceded to the WTO in 2001. To some degree that bet has “paid off,” producing benefits for
the citizens of China and other countries. Trade has helped China lift some four hundred million people out of poverty and has
provided more of the Chinese people with greater access to opportunities. Foreign investors and producers now serve China’s
growing market, while consumers worldwide can purchase a broad range of well-made affordable goods made in China. Meanwhile,
Chinese demand for goods and raw materials has created jobs and stimulated economic growth in many developing countries. The
World Bank notes that the efficiency and scale of China’s manufacturing has pushed down the prices of many manufactured
products relative to other goods and services. B Y S USAN A RIEL A ARONSON Chinese officials are ignoring both
international and local law for companies that produce for export. Susan Ariel Aaronson is an Associate
Research Professor and 2009–2010 Policy Research Scholar, George Washington University Elliott School. This article is a shorter
version of a chapter prepared for the forthcoming book, China in the WTO: An Early Harvest (Petros Mavroidis, ed.). THE
MAGAZINE OF INTERNATIONAL ECONOMIC POLICY 888 16th Street, N.W., Suite 740 Washington, D.C. 20006 Phone: 202-
861-0791 • Fax: 202-861-0790 www.international-economy.com WINTER 2010 THE INTERNATIONAL ECONOMY 41 A
ARONSON China today is now the world’s third-largest trading nation, the world’s largest recipient of investment, the world’s
fastest growing consumer market, and the world’s leading provider of manufactured goods. China’s regulatory and trade practices
can move global markets. But China’s competitive advantage is to some degree based on its inadequate
governance—it fails to enforce its own laws in a transparent, evenhanded manner. China’s
system is broken. And because it is broken, its inadequate governance affects its trade partners—
and ultimately, could break the WTO. On the one hand, China’s leaders have tried very hard to comply with the
country’s WTO obligations. China has changed many of its laws and met most of its market access commitments. On the other
hand, it has yet to meet many of the obligations delineated in its protocol of accession. European and
American business groups investing in China perceive China as becoming more interventionist and protectionist. As the world’s
most populous country, China is in many ways an outlier. It is both an ancient empire and developing country with two key
attributes: authoritarian governance and inadequate governance. At the national level, the Communist Party is at times willing to
ignore its international commitments in order to maintain power. Moreover, the Communist Party owns and operates, or is tied to,
private enterprises in key sectors such as transportation, energy, and banking. Some have described the government as both a
market competitor and a referee. China’s inadequate governance at the provincial level also reflects many
factors including corruption, a lack of uniformity among rules, and arbitrary abuse of
power. Local officials often have financial stakes in the same companies they are supposed to regulate. The Communist Party
and business are deeply intertwined, and thus governmental mandates from Beijing may be ignored or circumvented. Finally,
China has a culture of noncompliance, where bad actors set the norm, where laws and regulations
are often ignored or unevenly enforced, and where many citizens and market actors don’t know or can’t
obtain their rights under the law. WTO members deliberated a long time before they let China join the WTO. And they
used the accession to hold China on a tight leash. The 2001 Protocol on the Accession of the People’s Republic of China explicitly
calls on China to “apply and administer in a uniform, impartial, and reasonable manner all its laws, regulations and other measures
of the central government as well as local regulations, rules and other measures…pertaining to or affecting trade…. China shall
establish a mechanism under which individuals and enterprises can bring to the attention of the national authorities cases of non-
uniform application.” It also calls on China to ensure that “those laws, regulations, and other measures pertaining to and affecting
trade…shall be enforced.” The rule of law was a key element of China’s accession agreement because trade policymakers understood
that how China was governed could distort trade in many of the sectors in which China competes. In recent years, China
has become infamous for its failure to enforce its own laws, whether those laws related to
intellectual property, product or food safety, human rights, or employment. In both its 2006 and 2008
Trade Policy Review at the WTO, member states lauded Chinese trade diplomats for their export prowess, but also complained that
China was not transparent, accountable, or sufficiently evenhanded. Nor could they trust Chinese statistics on trade, economic
growth, bank stability, intellectual property protection, and other aspects of enforcement.
CCP COLLAPSE
WTO obligations will undermine CCP legitimacy
Halverson, 4 (Boston College International and Comparative Law Review, Interrelationships:
International Economic Law and Developing Countries China ’s WTO Accession: Economic,
Legal, and Political Implications, Volume 27, Article 6,
http://lawdigitalcommons.bc.edu/cgi/viewcontent.cgi?article=1131&context=iclr/)ms
The concept of transparency is central to the WTO agreements. Article X of the GATT
1994 requires that all trade-related laws, regulations, and rulings be promptly published and
administered in an "impartial and uniform" manner.I05 The Agreement on Trade-Related
Aspects of lntellectual Property Rights (TRIPS Agreement) devotes an entire chapter to
enforcement obligations,106 and the GATS, in addition to publication and notification
requirements, requires setting up "enquiry points" to provide information at the request of any
member.107 Thus, the transparency-related obligations contained in the wro agreements
encompass not only the publication of trade-related laws, but also their accessibility as well as
fair and effective implementation. In addition to these obligations, China's protocol of accession
includes a number of specific commitments that confirm as well as supplement the obligations
contained in the WTO agreements. This section describes these rules, points out certain
obstacles to their effective implementation, and notes the extent to which the Chinese
government has achieved progress in implementation. There has been much written regarding
the differences between China's legal culture and that of Western countries, including debate on
the degree to which China is a country governed by the "rule of law. "1°8 This Article does not
address all of these questions but instead describes the transparency-related rules that bind
China as a WTO member and assesses the general progress China has made, and the challenges
that remain, in implementing these obligations. When compared with the state of affairs in
1978, China has made impressive progress in creating the legal framework necessary to support
a market economy. Certainly, GATT (and later WTO) accession has proceeded alongside this
massive rebuilding of China's legal system-a system that was virtually wiped out during the
Cultural Revolution. 109 Yet it is increasingly apparent that WTO accession has also
provided a catalyst for China's evolution away from a legal system driven by power
relationships and towards a rule-based legal system.
Squo WTO protections like CITES fail –unenforceable and conflicting rules
RSPB, 2k
(charity working to secure a healthy environment for birds and all wildlife, "Birds, Biodiversity
and the World Trade Organization" https://www.rspb.org.uk/Images/Briefing%20-
%20Birds%20Biodiversity%20and%20the%20WTO_tcm9-133010.pdf) //cb
Particular issues where current or proposed rules do or could conflict with biodiversity
conservation include the following. Multilateral Environment Agreements (MEAs) Effective
international environmental policy – through existing agreements like the Convention on the International Trade in Endangered
Species (CITES) and the Biosafety Protocol - is crucial for wildlife conservation. However it is currently uncertain
whether trade-restricting measures that are allowed by Multilateral Environment Agreements
(MEAs) like CITES are compatible with WTO rules which generally try to encourage freer
trade. This means that MEAs are potentially open to challenge in, and could be undermined by, the
WTO. Trade rules and trade concerns are also having a ‘chilling effect’ on the development of new
MEAs. For example, an international agreement, negotiated in January 2000, to regulate the trade and use of
Genetically Modified Organisms (the ‘Biosafety Protocol’) was weakened because of the trade concerns of a small
group of GM crop exporting countries (including Canada and the USA). These GM crop exporters also managed to
ensure that the relationship between the Protocol and WTO rules remains unclear. This means that
future implementation of the Protocol could be undermined by a WTO challenge, or even
by just the threat of a WTO challenge. More sustainable production processes Although being able to favour
more environmentally benign production methods is potentially a very important tool in reducing
our adverse impact on biodiversity, the current interpretation of WTO rules prohibits
discrimination on the basis of the way products are produced (what are known as ‘non product-related
Process and Production Methods’ – PPMs). For example, under WTO rules, a country cannot give tax
concessions to timber that is certified as being sustainably produced (in order to encourage more
sustainable forestry). This is because, according to WTO rules, timber is timber no matter how it has
been harvested so all timber should be treated the same. Any discrimination on the basis of the
way it has been produced is deemed ‘unfair’.
AT: CITES SOLVE
CITES fails – commercial interests outweigh
Jones, 10 (Mark, programmes and fundraising director of Care for the Wild International, a
UK-based conservation charity, April 6, news.bbc.co.uk/2/hi/science/nature/8606011.stm)
//cb
Governments, conservationists and pro-trade groups have been trying to make what capital they can from their
respective "victories" at last month's meeting of the Convention on International Trade in Endangered Species
(CITES). But, asks Mark Jones, is the 37-year-old convention successfully doing the job it was
established to do? CITES is mandated to ensure that international trade in wild animals and plants, or products derived from
them, does not threaten their survival. An impressive-sounding 175 parties (member countries) are committed to implementing
various protection measures for some 5,000 species of animal and 28,000 plants. Yet at times on the floor of last month's
conference in Doha, Qatar, one had the impression that the arguments and outcomes had more to do with
protecting commercial interests than protecting wildlife. The process of decision making
has become intensely political. Parties choose to use scientific evidence to support their positions
when it suits them, and refute the validity of the science when it doesn't. Parties also use
procedural technicalities to their political advantage. At times, during a heated debate, the conference
resembles the bearpit of a national parliament. Countries with vested interests in particular issues often send
large delegations and high-ranking politicians and officials in order to persuade other parties to
side with them on crucial votes. Faced with proposals to protect beleaguered stocks of Atlantic bluefin tuna and several
species of shark, Japan sent around 50 delegates to coerce island states and developing nations into supporting their opposition. It
used claims of cultural bias, veiled threats, trade incentives and aid packages. Serving sushi derived from Atlantic bluefin tuna at a
lavish reception for delegates the night before the vote was a particularly cynical move. The Zambian delegation rolled out
Chieftainess Chiawa, head of a prominent indigenous group, to play the "poverty card" in support of their efforts to secure
permission from the conference to downlist their elephant population and sell off their stockpiled ivory; her pleas not to let her
people starve when considering the fate of Zambia's valuable ivory stocks were impassioned, if somewhat lacking in logic. CITES
EXPLAINED Threatened organisms listed on three appendices depending on level of risk Appendix 1 - all international trade
banned Appendix 2 - international trade monitored and regulated Appendix 3 - trade bans by individual governments, others asked
to assist "Uplisting" - moving organism to a more protective appendix; "downlisting" - the reverse Conferences of the Parties (COPs)
held every three years CITES administered by UN Environment Programme (Unep) The European Union, whose 27 votes
are a powerful force, votes as a bloc despite wide differences of opinion between EU
member states on some issues. Surely if a party firmly believes that science and evidence
supports a particular view, it should be obliged to vote accordingly, and not be forced to vote
differently by political arrangement? The UK broke ranks by voting in favour of Atlantic bluefin
tuna protection, incurring the wrath (and no doubt further sanctions down the line) of its EU partners.
These and other factors had a major bearing on the voting on a number of important proposals. Attempts to gain CITES
listings for marine species threatened with extinction because of overfishing, including bluefin
tuna and hammerhead sharks, failed to gain the necessary support, in spite of UN Food and
Agriculture Organization endorsement. As a consequence, these species - like so many other overfished marine stocks
- remain at the mercy of Regional Fisheries Management Organisations (RFMOs), the very organisations that have presided over
their near demise. Poor arguments Delegates in favour of maintaining trade in certain threatened species
often claim that limiting trade will harm the economies of poor communities, or reduce the opportunity for
people to obtain essential resources. However, most shark fishing is carried out in international waters by
large commercial vessels to serve the tastes of the growing middle classes in East Asia for shark fin
soup, and 80% of Atlantic bluefin tuna ends up as sushi in Japanese restaurants. Red and pink corals are disappearing
fast in order to supply nothing more essential than markets for jewellery and trinkets. Yet they all failed to
gain protection. In any event, there is nothing that will devastate a poor coastal community more
than the complete collapse of a stock of fish, removing a potential resource for the generations to come. Satanic
salvation Some of the decisions and resolutions adopted by the conference, though, will have important conservation benefits. The
conference operates on a budget of around $6m - not much more than the value of some of the yachts moored in Doha's bay outside
the conference centre Several species of Madagascan plants, Latin American amphibians, and reptiles have received CITES listings
restricting international trade. The unsung Satanic beetle from Bolivia gained an Appendix 2 listing to protect it from unscrupulous
collectors. Protection for many other species has been strengthened, including antelopes, rhinos, tigers, snakes and freshwater
turtles; and the conference eventually rejected proposals from Tanzania and Zambia to be allowed to sell off their elephant ivory
stockpiles. Demand led CITES seems to be most successful when dealing with species for which international trade poses a
significant threat but where financial or economic considerations are limited. It gets into difficulty when it tries to
deal with species of high commercial value. The international trade value of timber and
fish products dwarfs that of all other species put together. Yet despite demand for many tree and fish
species driving them towards extinction in the wild, the vast majority of attempts to introduce
or strengthen protection for them failed at this conference. French customs officer with tusk The
conference did not approve further sales in ivory As we go forward, it is vital that the conference exercises its mandate to regulate
trade in these species. Exploitation of, and trade in, wildlife and wildlife products is driven by demand. In an ideal world, we would
control trade in endangered species by reducing the demand, by educating people in consumer states. However, in the face of
criticism concerning "interference with national sovereign rights", "cultural traditions" and "ignorance of poverty", such efforts are
unlikely to succeed - certainly not in time to save many of the species this conference discussed. So, while continuing with demand
reduction efforts, the focus is on controlling the supply through national and international regulation, effective enforcement and
severe penalties for offenders who try to obtain, ship or trade in wildlife products illegally. The growing involvement of
sophisticated, well-funded and increasingly armed criminal organisations in the illegal wildlife trade was recognised at the
conference, along with the need for enforcement efforts to match this level of sophistication if it is to be effective. Wildlife crime,
long seen as "soft", is now up there with the trade in drugs, weapons and people in terms of its significance and the way it operates.
Only game in town? So is CITES still an effective force for species conservation? There is a feeling
among many conservationists that Doha may have been our last chance to give real, meaningful
protection for some species - and that we missed it. However, for all its faults, CITES is the one international
convention specifically targeted at controlling trade in endangered species, so it is the international legal framework with which we
have to work. The conference operates on a budget of around $6m - not much more than the value of
some of the yachts moored in Doha's bay outside the conference centre. Perhaps what CITES needs
is a bigger budget, sharper teeth, and some way of taking some of the politics and vested interests
out of its proceedings. The protection of many species affected by trade requires international cooperation and protection,
because they are captured in one country, transported through others, and consumed in others still. If CITES won't provide
this international protection, who will?
DEFORESTATION
The WTO interferes with conservation efforts – deforestation
Tarasofsky and Pfahl, 1 (Richard, Commercial Councillor and Senior Trade Commissioner at
Embassy of Canada to Germany, and Stefanie, Senior Fellow at Adelphi Research, December,
Trading Away the Last Ancient Forests: the threats to forests from trade liberalization under
the WTO,
http://www.iatp.org/files/Trading_Away_the_Last_Ancient_Forests_The_Thre.htm/ms)
The rules of the World Trade Organization (WTO) currently interfere with efforts to conserve
and sustainably use the world's forests. The lack of certainty on the relationship between WTO
rules and multilateral environmental agreements (MEAs) threaten to undermine the full
effectiveness of MEA rules aimed at forests. Similarly, WTO rules "chill" the full implementation of
forest conservation provisions and the development of trade measures in MEAs. WTO rules do not allow
countries to apply economic pressure to rogue countries that are massively destroying their forests. At the
same time, WTO rules prevent countries from using export bans to promote sustainable
development, may not allow the application of independent voluntary forest certification, and
may interfere with the full application of the precautionary principle. WTO rules may prevent
appropriate protection of traditional forest-related knowledge and effective efforts to combat
illegal trade in forest products. Despite the commitment to sustainable development and
environmental protection in the Preamble of the Agreement Establishing the WTO, the WTO
does not contain rules that ensure that trade policy supports the conservation and sustainable
use of forests.
Extinction
Haan, 2008 (Mia den, IT consultant, “Deforestation is Affecting the Human Race In Many
Different Ways”, 6/14, https://planetarychanges.wordpress.com/2008/06/13/deforestation-
affects-humanity-in-many-different-ways/ /ms)
Most people need to implement a much better, ecologically friendly lifestyle before it is too late,
and nature takes its course with further calamities. If most of humanity does not implement
improvements in its life and does not make ecologically sustaining lifestyle changes but continue
to damage and pollute the planet, there will not be a liveable environment in the near future.
Our ecological system is the most important part of this planetary system and it must be
conserved. Trees are of utmost importance to have an ecologically balanced
environment. Without trees, there will be no chance of surviving, not only because of
the need for oxygen or because of the lack of paper and other commodities, but in particular
because this ecological structure is part of the planet’s ecological foundation plane. Trees are
much more important to the well-being of humanity than most people know. They create energy
forms and hold much of the balance on the planet, in particular, those trees that are part of a
forest. These energy forms can be enormous and can keep people in balance mentally,
emotionally, and, to some degree, allow people to be less affected by air pollutants. Our forests
must therefore be protected.
causes extinction
Science Daily 11 ("Biodiversity Key to Earth's Life-Support Functions in a CHanging World,",
August 11, /ms)
The biological diversity of organisms on Earth is not just something we enjoy when taking a walk through a
ScienceDaily (Aug. 11, 2011) —
is also the basis for countless products and services provided by nature,
blossoming meadow in spring; it
including food, building materials, and medicines as well as the self-purifying qualities of water
and protection against erosion. These so-called ecosystem services are what makes Earth
inhabitable for humans. They are based on ecological processes, such as photosynthesis, the production of biomass, or
nutrient cycles. Since biodiversity is on the decline, both on a global and a local scale, researchers are asking the question as to what role the diversity of organisms plays in
In an international research group led
maintaining these ecological processes and thus in providing the ecosystem's vital products and services.
by Prof. Dr. Michel Loreau from Canada, ecologists from ten different universities and research institutes, including
Prof. Dr. Michael Scherer-Lorenzen from the University of Freiburg, compiled findings from numerous biodiversity
experiments and reanalyzed them. These experiments simulated the loss of plant species and attempted to determine the consequences for the
functioning of ecosystems, most of them coming to the conclusion that a higher level of biodiversity is accompanied by an increase in ecosystem processes. However, the findings
were always only valid for a certain combination of environmental conditions present at the locations at which the experiments were conducted and for a limited range of
ecosystem processes. In a study published in the current issue of the journal Nature, the research group investigated the extent to which the positive effects of diversity still apply
under changing environmental conditions and when a multitude of processes are taken into account. They found that 84 percent of the 147 plant species included in the
The more years, locations, ecosystem processes, and
experiments promoted ecological processes in at least one case.
scenarios of global change -- such as global warming or land use intensity -- the experiments took into account, the
more plant species were necessary to guarantee the functioning of the ecosystems. Moreover, other
species were always necessary to keep the ecosystem processes running under the different
combinations of influencing factors. These findings indicate that much more biodiversity is
necessary to keep ecosystems functioning in a world that is changing ever faster. The protection
of diversity is thus a crucial factor in maintaining Earth's life-support functions.
ECONOMY
WTO is failing developing countries – hurts growth
Walker, 11 (Aurelie, is trade policy advisor at the Fairtrade Foundation. Has specialised in EU
trade relations with Africa, the Caribbean and the Pacific. She has worked as trade negotiator for
an East African government, as advisor to business and government in Southern Africa on the
Economic Partnership Agreement negotiations and for European Institutions and think tanks,
11-14-2011, "The WTO has failed developing nations," Guardian,
https://www.theguardian.com/global-development/poverty-matters/2011/nov/14/wto-fails-
developing-countries/ms)
Ten years ago, a new World Trade Organisation that put developing country needs at the centre of the international trade
negotiation agenda was proposed. The Ministerial Declaration adopted at the start of the Doha Development Round of trade
negotiations, on 14 November 2001, was a promising response to the anti-globalisation riots of the 1990s. But the WTO
membership has failed to deliver the promised pro-development changes. Finding
"development" in the Doha Development Round today is like looking for a needle in a haystack. Developing countries have
been completely sidelined by the economic and political interests of global powers. Here are 10
examples of how the WTO has failed the poor: 1. Cotton: the Fairtrade Foundation revealed last year how the
$47bn in subsidies paid to rich-country producers in the past 10 years has created barriers for
the 15 million cotton farmers across west Africa trying to trade their way out of poverty, and how 5
million of the world's poorest farming families have been forced out of business and into deeper
poverty because of those subsidies. 2. Agricultural subsidies: beyond cotton, WTO members have failed
even to agree how to reduce the huge subsidies paid to rich world farmers, whose
overproduction continues to threaten the livelihoods of developing world farmers . 3. Trade
agreements: the WTO has also failed to clarify the deliberately ambiguous rules on concluding trade
agreements that allow the poorest countries to be manipulated by the rich states. In Africa, in
negotiations with the EU, countries have been forced to eliminate tariffs on up to 90% of their trade because no clear rules exist to
protect them. 4. Special treatment: the rules for developing countries, called "special and differential treatment" rules, were meant to
be reviewed to make them more precise, effective and operational. But the WTO has failed to work through the 88 proposals that
would fill the legal vacuum. 5. Medicine: the poorest in developing countries are unable to access affordable
medicine because members have failed to clarify ambiguities between the need for governments
to protect public health on one hand and on the other to protect the intellectual property rights of pharmaceutical
companies. 6. Legal costs: the WTO pledged to improve access to its expensive and complex legal system, but has failed. In 15 years
of dispute settlement under the WTO, 400 cases have been initiated. No African country has acted as a complainant and only one
least developed country has ever filed a claim. Advertisement 7. Protectionist economic policies: one of the WTO's five core functions
agreed at its inception in 1995 was to achieve more coherence in global economic policy-making. Yet the WTO failed to curb the
speedy increase in the number of protectionist measures applied by G20 countries in response to the global economic crisis over the
past two years – despite G20 leaders' repeated affirmations of their "unwavering" commitment to resist all forms of protectionist
measures. 8. Natural disaster: the WTO fails to alleviate suffering when it has the opportunity to do so. In the case of natural
disaster, the membership will have taken almost two years to agree and implement temporary
trade concessions for Pakistan, where severe flooding displaced 20 million people in 2010 and
caused $10bn of damage. Those measures, according to the International Centre for Trade and Sustainable Development,
would have boosted Pakistan's exports to the EU by at least €100m this year. 9. Decision-making: the
WTO makes most of its decisions by consensus – and achieving consensus between 153 countries is nearly impossible. But this
shows another failure of the WTO: to break the link between market size and political weight that would give small and poor
countries a voice in the trade negotiations. 10. Fair trade: 10 years after the start of the Doha Development
Round, governments have failed to make trade fair. As long as small and poor countries remain without a voice,
the role of campaigning organisations, such as Traidcraft and Fairtrade Foundation, which are working together to eliminate cotton
subsidies, will remain critical. The WTO has failed to live up to its promises over the past decade, which reveals a wider systemic
problem in the global community. True and lasting solutions to global economic problems can
only come when the model of global competitiveness between countries becomes
one of genuine cooperation.
Increased WTO cred will cause financial crises in the East Asian region and other
developing countries
Gavin, 7 (Brigid, Research Fellow at United Nations University, Regional representation in the
WTO A new role for regional trade clubs?,
http://www.cris.unu.edu/fileadmin/workingpapers/20071211115556.W-2007-13.pdf/ms)
Since the creation of the WTO, it has been increasingly difficult to achieve cooperation in the
WTO. The propensity to cooperate is determined by interaction between the degree of
congruence between Members' preferences and the robustness of the institutional framework.
Decreasing congruence of the preferences of Member countries has become more obvious and
entrenched. While industrial countries display their marked preference for 'deep integration',
this is not shared by developing countries.10 A similar situation exists with regard to non-trade
issues such as environmental and labour standards. And while developing countries insist on
expanding special and differential provisions, many industrial countries are strongly opposed to
it. Given those factors, the creation of a powerful institutional framework that constrains
options available to developing countries, the resulting outcome has turned into a situation of
policy paralysis. The extension of the WTO into the new fields has impaired the ability of
governments to continue providing public goods that they have traditionally done. A series of
financial crises, the worst of which was in East Asia in 1997-98, has shown how
financial liberalisation advanced by the multilateral institutions has undermined
financial stability in a number of developing countries. The trade-related intellectual
property rights (TRIPs) impinges on governments ability to provide public health in many
developing countries. The provision of consumer and environmental protection has been made
more complicated in industrialised countries.
There were many events that did nothing but add fuel to the political fire. In 2005, for example, the
Chinese firm CNOOC attempted to acquire the U.S. oil firm Unocal and was rebuffed on the grounds of national security by
Congress. The 2007 year was beset by an epidemic of product recalls and U.S. import bans related to China's exporters-due to claims
of chemicals such as melamine and diethylene glycol discovered in pet food and toothpaste, lead paint found in children's toys,
defective radial tires, and banned antibiotics applied to farmed seafood.' The first half of 2008 saw new topics seep
into U.S.-China trade tensions-including the growing financial clout of sovereign wealth funds,
the accumulation of foreign exchange reserves, and the threat that the United States would im
pose new border taxes to address failures to negotiate multilateral commitments to reduce
carbon emissions and from this laundry list of combat global climate change. 4 U The scary item to note
from this they all took place despite laundry list of U.S.-China tensions is relatively good times for the that they all took place despite
relatively good times for the U.S. economy and certainly well before the severe deepening of the financial crisis in the second half of
2008. Many expect U.S.-China trade frictions to only get worse in the face of an ongoing U.S. recession and worsening
unemployment figures.5 History provides many examples of how a bad domestic economy creates just
the right conditions for politicians to shut off imports in a misguided and desperate attempt to
save jobs. Despite the fragility of the global economy and the risks it poses to the liberal international trading system, Beijing
and Washington are unlikely to settle all of these (as well as any imminent) newly initiated U.S.-China
WTO disputes without going through the formal WTO process.6 For one, there is a tremendous
amount at stake in terms of market access, legal precedent, and politics. Second, each dispute
requires many years of legal challenges and appeals that can be used to provide beneficial
political cover to both sides. For the Obama administration, even simply continuing with the ongoing disputes that the
Bush administration initiated will help diffuse some of the protectionist threat emanating from a Congress that is politically hostile
toward China. Such a strategy could lead to tangible signs of Chinese reform "progress" that may be more difficult to negotiate in
other settings. Third, it is not clear that the two indicators of greatest political concern to the
Congress-the size of the bilateral trade deficit (still close to $250 billion for 2008) and the extent of
renminbi currency revaluation vis-ii-vis the dollar (appreciating since July 2005, but neither sufficiently quickly
nor with sign of increasing market oriented flexibility)-will see marked improvements anytime soon. Thus, Beijing
also recognizes that if it were to settle the full complement of WTO disputes early, it would likely find itself the political target of new
WTO disputes, if not something worse. Given the current economic insecurities as well as the state of
bilateral trade relations, are China, the United States, and the WTO ready for their frictions over
auto parts, film, media, and intellectual property to be at the center of formal dispute
settlement? In these WTO disputes, what starts as seemingly harmless legal maneuvering and argumentation often turns into
political battles, threats, and legally-sanctioned implementation of actual retaliation, and media-fed worries of an all-out trade war.
Successful use of the WTO's multilateral dispute settlement process to diffuse Washington Beijing bilateral tensions is far from a
foregone certainty. In order for the WTO dispute process to "work," both the United States and China
need to act and react with political savvy and have an underlying, long-term commitment to the
process and WTO system. Is China in particular sufficiently vested in the system? Is the system itself too vulnerable to hold
up in such a politically sensitive and weak economic environment? As the history of formal dispute settlement reveals, a fully
successful resolution to these and future disputes that the United States and China file against
each other will involve dealing with some foreseeable, as well as many unforeseeable, pitfalls.7
The particular attraction to WTO dispute settlement is the potential for these legal disputes to not
only diffuse political tension but also for their resolution to bring a "win-win" economic outcome
to both sides market access gains to U.S. exporters and reforms that enhance Chinas economic
growth. Nevertheless, success is by no means a certainty, especially in the current international climate of such economic and
political volatility. Missteps by either side through careless mismanagement of the politics of the
dispute resolution process could lead to stalemates and both sides becoming disenfranchised
with the current rules-based trading system. Such an outcome would have serious consequences, as the WTO
system needs both the United States and China to be confident and invested in the future of the institution. are in for some U.S.-
China The bottom line is that we are fireworks. in for some U.S.-China fireworks emanating from Geneva over the near term. There
is value to a guide for what to expect along the way.
A credible WTO DSB is crucial to manage U.S.-China relations and offers the CCP
political cover necessary for political stability
Castel-Fodor 13
(Kennan J. Castel-Fodor, J.D. is a candidate at Case Western Reserve University School of Law,
CASE WESTERN RESERVE LAW REVIEW, “Providing a Release Valve: The U.S.-China
Experience with the WTO Dispute Settlement System,” TMP)
The Sino-American relationship remains a salient political issue within the United States, with
the People’s Republic often vilified. A number of subjects tend to ignite the ire of the American public
and Congress, including human rights, currency manipulation, and trade frictions. The U.S. administration’s
engagement of China through DSB litigation conveys a strong political stance in instances of perceived
violations of China’s international obligations. This litigation strategy toward China helps to placate the
American public’s anger as well as the calls for tougher legislation from Congress.
The saber rattling from Congress can prove potentially catastrophic for U.S.-Chinese
relations as protectionist trade legislation can spark damaging retaliatory policies from China. The U.S.
administration can use WTO litigation to address issues preemptively before protectionist elements in
Congress can act. For the American government, WTO litigation provides a unique ability to diffuse
political tensions that could have deleterious ramifications for the long-term benefit of the
Sino-American relationship. While the Chinese government is not subject to the same democratic undulations,
domestic pressure within China is of great concern to the Chinese Communist Party’s (CCP) political
stability. Economic concerns are always at the forefront of the CCP’s domestic and foreign policy, as demonstrated through the
maintenance of the currency policy that has caused much contention. Sometimes, China’s initiation of WTO litigation
is the direct result of domestic concerns toward particularly prominent trading partners. Like the
United States, the Chinese government can utilize DSB determinations to implement or speed up
reforms that may not be particularly popular domestically. This is particularly true in situations in
China where reform, without DSB determinations, would be untenable. The prospect of WTO litigation and
the permeation of DSB norms throughout China can provide the CCP domestic credibility for instituting
reformist policies. Increasing WTO litigation and improving Chinese legal savvy can also provide the indirect benefit of
bolstering the Chinese public’s faith in not only the WTO and DSB but also other international organizations. This provides the CCP
with a stronger trade dispute mechanism that would have more support from the Chinese domestic populace. A dedication to
resolving trade disputes through the DSB provides the governments in Beijing and Washington
both clout and political protection. Given the complex political landscape, using the DSB allows both the
United States and China to vent domestic frustrations through an international legal forum. The use of
the DSB as a third-party intermediary allows both governments to deflect losses while still
resolving tense political frictions. The DSB allows the United States and the People’s Republic to diffuse political
tensions that can arise within a domestic market, especially with the public, media, and political figures.
SOLVES ENVIRONMENT
Credible DSB solves the environment
Brockova1 16,
(Katarína Brockoval studied both international economic relations and diplomacy at the
Bratislava University of Economics School of Commerce, “
MULTILATERAL TRADE RULES AND ENVIRONMENTAL PROTECTION”, via ProQuest,
TMP)
Conclusion. The main aim of the World Trade Organization is the facilitation of
progressive trade liberalization. However, over the past 20 years, it has become evident
that tensions may arise between international trade on the one hand, and, public health and
environmental concerns, on the other, especially when WTO members introduce trade
restrictions to protect environmental interests. In this respect, it had been established by
the WTO’s Appellate Body on numerous occasions that, funda- mentally, the WTO Members
have the right to determine the level of protection they consider appropriate in a given context.
However, in order to meet the strict criteria for WTO-consistent application of exceptional
trade restrictive measures in order to protect legitimate environmental interests of WTO
members, these measures need to be necessary and effective with respect to
achieving the proclaimed policy objective and there must be no alternative less trade-
restrictive measure available. In this con- text, it is important to note that it is in the discretion
of the WTO Appellate Body whether to apply qualitative or quantitative analysis for the
examination of measures effectiveness. In our opinion, this approach results in quite a
large space for the WTO dispute settlement body to apply different criteria and
methods for the evaluation of the necessity of the measure at stake in view of
achieving the proclaimed objective in va- rious disputes. Thus, the absence of a
standardized method for examination of the effectiveness of such measure makes it nearly
impossible to make reasonable conclu- sions on the consistency of the Appellate Body’s
decisions in some disputes. This may potentially lead to diminished predictability of the
outcomes of future environmental disputes brought to the WTO. On the other hand, our
analysis shows that the WTO’s Appellate Body is quite consistent and strict in
safeguarding the non-discriminatory application of trade- restrictive measures
provisionally justified under the general exceptions clause of the GATT 1994. Lastly,
the China-Raw Materials dispute analysed above shows that the Appellate Body is keen on
limiting the access to general exceptions under GATT 1994 for WTO members which have
negotiated elaborate accession protocols, where numerous exceptions from the WTO rules have
been granted to them under the spe- cial and differential treatment principle applicable to
developing countries.
TURNS INEVITABLE
Their turns are inev – means we outweigh on timeframe
Baldwin 08
(Richard Edward Baldwin is Professor of International Economics at the Graduate Institute,
Geneva since 1991, a part-time visiting research professor at the University of Oxford since 2012,
Policy Director of CEPR since 2006, and Editor-in-Chief of Vox since he founded it in June
2007, Vox, July 1, 2008, “The WTO tipping point”, http://www.voxeu.org/article/wto-tipping-
point, TMP)
To date, these changes seem more like challenges than threats. The key players believe the world
trade system will continue to be anchored by the WTO’s shared values, such as reciprocity,
transparency, non-discrimination, and the rule of law. WTO-anchorage allows each member to view its own
policies as minor derogations. Yet, at some point derogations become the new norm . The steady erosion of
the WTO’s centricity will sooner or later bring the world to a tipping point – a point beyond which
expectations become unmoored and nations feel justified in ignoring WTO norms since everyone
else does. A polycentric trading system? No one knows what happens beyond the tipping point. My guess is that trade would
continue to grow and the system would continue to function – but not equally well for all nations. Before
the GATT was set up in 1947, the Great Powers settled trade disputes by gunboats or diplomats
depending upon the parties involved. Only the naïve thought market access should be reciprocal or
fair. A return to this “Belle Époque” extreme is unlikely, but a new Great Powers trade system is likely to emerge.
Its core will be the US and EU networks of bilateral trade deals. Domestic special-interest groups, newly freed from
WTO constraints, would push the EU and US templates in divergent directions. Regional
arrangements of the new trade powers and Russia could diverge even more markedly, since WTO norms
have never fully been internalised by their domestic special-interest groups. This would be a world of “spheres of
influence” and bare-knuckle bargaining. All would lose in this post-tipping point world but not equally.
The United States, European Union, Japan, China, and India have enough market leverage to defend
their interests. Small nation would suffer much more as they benefit the most from the WTO’s
consensus-based rules and negotiations. Worse yet, moving towards a might-makes-right trade
system would be extremely corrosive to global cooperation on the new century’s greatest governance
challenges – climate change, pandemics, water scarcity, and the Millennium Development Goals.
WTO KEY TO TRADE
Even if uneven, WTO membership enhances trade exponentially
Subramanian* and Wei** 6
(Arvind* and Shang-Jin**, Jan 12, Indian economist and the current Chief Economic Adviser to
the Government of India*, N. T. Wang Professor of Chinese Business and Economy and
Professor of Finance and Economics at Columbia Business School.**
https://piie.com/publications/papers/subramanian0106.pdf)//cb
IV.4 Industrial country effect or WTO effect? One of our main and robust findings is that industrial country
WTO membership is associated with greater trade. In most years in our sample, however, all industrial countries
are GATT/WTO members. How can we be sure that we are picking up a WTO effect rather than an
industrial country effect? 23 In response we would make a number of points. First, insofar as industrial
countries have several distinguishing characteristics collectively and individually we control for them
respectively through our time-varying importer and exporter fixed effects. In other words, the results on the
WTO dummy do not follow simply because they are richer or larger than other countries or in some ways geographically or
historically distinctive. Nevertheless, it is still possible that there are residual characteristics of industrial countries that are
unobservable and therefore omitted from our set of regressors, biasing our results. Second, we also obtain and report
some more direct evidence in favor of a WTO rather than an industrial country effect. A number of
industrial countries were not contracting parties to the GATT at the beginning of our sample (The
exact years of accession for the individual countries are listed in Appendix Table 2). We run panel and annual cross-section
regressions for these years and, in addition to the usual industrial country GATT/WTO variable, add an industrial country
GATT/WTO non-member variable. The results are reported in Table 12.24 The panel regression (column 1) shows that while both
industrial country GATT/WTO member and industrial country non-member coefficients are positive and significant, the two are
significantly different from each other.25 The difference in the values of the coefficients suggests that an
industrial country GATT/WTO member importing 200 percent more than an
industrial country non-member.26 The year-by-year results (columns 2-5) also confirm, in all 4 time periods, that
industrial country GATT/WTO members imported significantly more, economically and
statistically, than industrial counties that were not GATT/WTO members. V. SUMMARY AND
CONCLUDING REMARKS Rose (2004a) has seriously called into question the effectiveness and hence the
usefulness of the GATT/WTO as a multilateral institution. His analysis implies that the GATT/WTO, whose raison d’être is
to promote trade, has failed to do so. Our paper shows, however, that the GATT/WTO has done a
splendid job of promoting trade. The GATT/WTO has served to increase world imports
substantially, possibly by about 120 percent of world trade (about US$8 trillion in 2000 alone). But this
trade promoting role of the GATT/WTO has been uneven. This unevenness is related to four asymmetries in the system, most of
which can be rationalized by the recent economic theory of the GATT/WTO. Our empirical investigation has found evidence
consistent with these asymmetries.
WTO is key to trade – best new analysis proves, also necessary to ensure RTA’s are
effective – Rose doesn’t assume 2008
Elsig et al 16,
(Manfred Elsig is Professor of International Relations and Deputy Managing Director of the
World Trade Institute of the University of Bern, His research focuses primarily on the politics of
international trade, regional trade agreements, European trade policy, international
organizations, US–EU relations, and private actors in global politics, Bernard M. Hoekman is
Research Manager of the International Trade team in the Development Research Group of the
World Bank, Washington, DC, Joost Pauwelyn is Professor of International Law at the Graduate
Institute of International and Development Studies (IHEID) in Geneva, “Thinking about the
performance of the World Trade Organization: A discussion across disciplines”,
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2732639, TMP)
II. Goals and performance of the WTO: Three metrics 1. Reducing trade barriers and
agreeing to new policy disciplines The basic stylized fact here is well-known: to date the
WTO’s performance in delivering new policy commitments has been very weak. This does not
require economic analysis, of course, in that no new market access agreements were negotiated
between 1995 and 2015. The Doha Development Agenda has been moribund since 2008 and the
large players that historically have been the mainstays of multilateral trade cooperation (US and
EU) have shifted their main focus to the conclusion of so-called mega-regional agreements
(TPP, TTIP). Indeed, there has been a general shift towards preferential trade agreements
(PTAs): some 400 PTAs have been notified to the WTO in the last 20 years. Much of the
liberalization that has occurred since 1995 has been associated with either unilateral reforms or
the implementation of PTAs. An interesting question is to what extent this is consistent with the
‘macro’ goal of reducing barriers to trade. Given that average levels of protection have continued
to fall throughout the post- 1995 period, and that the WTO explicitly allows for members to
negotiate PTAs, it is not as clear as is often argued that the WTO has failed to deliver. It has not
proved possible to conclude the Doha Round and agree to new rules in areas such as agricultural
subsidies, but at the same time governments have signed numerous preferential trade
agreements and reduced average levels of protection. Moreover, it should be
recognized that in key areas that economic research suggests will deliver large
gains for developing countries – most notably trade facilitation (where estimated potential
gains exceed what was proposed in Doha for reducing tariffs—e.g., Hoekman and Nicita, 2011) –
WTO members did conclude an agreement. 2. Managing political economy pressures
and preventing backsliding Does the WTO improve national trade policy processes and
outcomes? Here the answer is largely positive, although there is no consensus. At the national
level there is evidence of a positive effect of the WTO on the ‘quality’ of trade policy.
In part this is reflected in the fact that although numerous, the number of disputes are
much less than what would be predicted based on the number of bilateral interactions between
countries (Horn et al, 1999; Sattler and Bernauer, 2011). In part this has been demonstrated
by case studies of specific countries. Examples include the work of Mike Finger and coauthors
(Bacarat et al. 2013; Finger and Nogues, 2006) showing how WTO disciplines can be and have
been used to manage and deflect pressures for protection by powerful interest groups. One
measure of performance on this front is what happened (did not happen) following
the 2008 financial crisis in the US and the EU. In contrast to the late 1970s and early
1980s, the closest recent analogue where a major shock (OPEC price rise) sent the global
economy into a tailspin, when governments imposed a plethora of trade restrictions, including
quotas and ‘voluntary’ export restrictions, there was not a significant rise in average
levels of protection post-2008.6 For example, Gawande, Hoekman and Cui (2015) find that
WTO disciplines were a factor, although they also point to changes in the incentives to use
trade policy: once countries are highly integrated into international production
networks they will not benefit from trade protection. But insofar as the rise of
global value chains was a factor in restraining protectionism, to a significant
extent this in itself can also be attributed to the WTO: the open, rules-based
multilateral trading system underpinned the shift by companies towards greater
specialization, cross-border investment and international production networks. Another
measure of the performance of the WTO in this area is the absence of a large scale
increase in disputes alleging violations of WTO commitments post-2008 crisis (see
also Section E below). As discussed subsequently, one of the ‘micro’ functions that played a
supporting role in this regard are the WTO’s various transparency mechanisms. 3. Trade effects
of the WTO As noted previously, one measure of the attainment of both of the broad macro
goals of the WTO that are distinguished in the economics literature is whether the WTO has an
effect on countries’ trade patterns and performance. The most straightforward measure is
whether the WTO overall or membership of a country in the WTO increases trade
volumes and the structure of trade (lower barriers and less uncertainty should increase
investment in tradables and allow exploitation of comparative advantages that will be reflected
in changes in specialization). The best evidence from a statistical perspective – in terms of
identifying a ‘WTO effect’ – comes from studies of the effects of WTO accession.
Countries that acceded to the WTO after 1995 differ from ‘original’ WTO members in that they
were forced to go through a rigorous and demanding process of review and scrutiny, and were
required to do much more to bolster and reform trade policy institutions than GATT
incumbents. Rose (2005); Subramanian and Wei (2007) and Tang and Wei (2009) find
a positive trade impact for countries that joined the WTO after 1995. Tang and Wei
(2009) attribute this positive effect to improved economic governance and argue that WTO
accession acts as a partial cure for weaknesses in the investment climate in many
acceding countries. The mechanisms that are at play here span various elements of
the WTO, including greater policy certainty associated with bindings and transparency.
Reducing uncertainty is an important dimension of the WTO and trade
agreements more generally (see, Francois, 1997; Francois and Martin 2004; Handley 2014
and Limão and Tovar 2011). There has been debate in the economics literature whether positive
trade effects apply more generally. Rose (2004), most notably, undertook a gravity model
analysis of the determinants of bilateral trade flows of GATT/WTO members for a 50 year
period and failed to find a distinct impact associated with GATT/WTO membership. However,
Subramanian and Wei (2007) find that the WTO does increase trade – by some 40
percent on average – but only for those countries that participated in the process
of reciprocal exchange of trade policy commitments. They do not find such a positive
trade effect for most developing country members of the GATT, which they attribute to the
pursuit of special and differential treatment which implied that most of these countries did not
make changes to their trade regimes. Similarly accounting for this selection bias, Liu (2009)
and Dutt et al. (2013) find a strong role for the WTO in increasing the extensive
margin of trade; the latter conclude that WTO membership increases the extensive margin by
30 to 40 percent. Another example of a WTO agreement that should allow for clear
identification of impacts is the Agreement on Government Procurement (GPA). This
applies to only a subset of countries, thus permitting comparisons between signatories and non-
signatories. Research finds no effects on the import behavior of participating governments.
Shingal (2015) analyzes procurement sourcing over time in Japan and Switzerland, and finds
that GPA membership has no independent effect. Shingal (2011) concludes that the share of
services contracts awarded to foreigners declined over time for these two countries, as opposed
to rising. Rickard and Kono (2013) assess the effects of the GPA and 43 PTAs that include
procurement, and conclude the agreements have no impact on foreign sourcing. However, here
again there may be country-specificity at work. Fronk (2014), focusing only on agreements
negotiated by the US finds a statistically significant positive effect of bilateral
procurement agreements on procurement behavior. Thus, while the WTO overall has
had the expected positive trade impact, this is not the case across the board. The determinants
of the performance of the WTO in achieving the broad ‘macro’ goals that are the focus of
economics research are varied. External events – not just events such as the 2008
crisis/recession or the 1998 East Asian financial meltdown but also major structural changes
such as the rapid growth sustained by China that led to a major rebalancing of the world
economy – clearly are a factor, as are decisions by WTO members whether and how
to employ outside options to pursue the macro goals. The intensity with which WTO
members have used PTAs increased in the WTO’s first 20 years and it is likely that this trend
will continue. It is important to consider that the WTO makes explicit provisions for
the negotiation of PTAs between its members. The WTO membership has a choice
where and how to pursue trade cooperation. The revealed preference has been to pursue
parallel tracks: the Doha negotiations and plurilateral initiatives as well as PTAs. Has a
proliferation of PTAs led to significant trade diversion and negative spillovers for non-
members? While the jury is still out on this question, empirical economic research suggests that
PTAs have not had anywhere near the negative effects they might have had and that on balance
they have been associated with a general trend of greater openness to trade globally.7 PTAs do
not address many of the core issues that are of concern to the majority of the WTO membership
and that are on the table in the DDA – most notably trade-distorting agricultural policies and
subsidies. They are not a substitute for a comprehensive multilateral agreement that goes
beyond what was negotiated in the 1990s (the Uruguay Round). An internal factor that many
argue plays a role in the limited achievements in new rule-making in the WTO is how the
negotiating agenda is determined and limited scope to adjust this over time. Numerous
economic analyses suggest that the ‘landing zone’ associated with the DDA is both small and
perhaps more important, that the distribution of associated economic benefits and losses is
quite asymmetric (Decreux and Fontagné, 2015; Laborde and Martin, 2015; Martin and
Messerlin, 2007). These are issues where there is substantial scope to apply both quantitative
modeling and analysis used in other parts of economics (e.g., the theory of clubs and
fiscal federalism), as well as a clear need for multi-disciplinary research strategies to identify
areas of complementarity between PTAs, small group cooperation in the WTO, and
universal membership agreements. A function of the WTO that has played an
important role in sustaining cooperation – preventing backsliding; avoiding
disputes – are the various transparency mechanisms. This played a positive role in the
post-2008 period in raising external visibility of national trade policy measures and signaling
that actions of governments would be scrutinized. Of course, determining to what extent this led
to fewer action being taken is difficult to determine – there is no clear counterfactual. This is one
subject where there is a need for multi-disciplinary analysis, e.g., detailed case studies of
deliberation within governments and in parliaments. The same is true for assessments of the
role that WTO commitments and disciplines play in the way that governments respond to
pressures from domestic constituencies for economic assistance. WTO rules, processes and
interactions are just one mechanism through which government policy is affected.
The economic research on the trade and growth effects of the WTO demonstrates that these
effects may be indirect as well as direct. The indirect channel may well be more
important, but difficult to identify. Thus, engagement in the WTO may help to stimulate a
focus on improving the business environment and investment climate more generally. The need
to develop a capacity to implement agreements and to participate in dispute settlement may
have spillover effects in other areas – e.g., the negotiation of investment agreements, or a
reconsideration of approaches towards non-trade economic regulation. The WTO cooperates
and interacts more closely with a large number of international agencies and organizations than
the GATT did. An example is the work on ‘aid for trade’ which has brought the WTO into the
ambit of the development community and raised awareness of trade capacity needs in the
development world. This may well have had significant payoffs in attaining ‘macro’
goals. Documenting what should be attributed to the operation of the WTO is a difficult
challenge.
AT: RTA
Regionalism ALONE fails – strong WTO is a necessary foundation – RTA’s risk
conflict
Low 14
(Patrick Low is the vice president for Research at the Fung Global Institute in Hong Kong,
“Preferentialism in Trade Relations: Challenges for the World Trade Organization”, May 2014,
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2434993, TMP)
This paper argues that preferential trade agreements (PTAs) and the World Trade Organization (WTO) are not substitutes, and
dispensing with a multilateral venue
while PTAs are without doubt here to stay, is not a serious option for doing business in trade matters .
It is therefore necessary to seek out better accommodation between PTAs and the WTO than has been apparent to date. The law of the General Agreement on Tariffs and Trade (GATT)/WTO has systematically fallen
short in imposing discipline on discriminatory reciprocal trade agreements, while procedural requirements, such as notifications, have been partially observed at best, and dispute settlement findings have tended
to reinforce existing weaknesses in the disciplines. One approach to remedying this situation is to explore a different kind of cooperation—that of soft law. A soft law approach to improving coherence and compatibility
between the WTO and PTAs may hold some promise, but the option also has its pitfalls. Preferentialism in trade policy has exploded in the last 15 years and it is not going to disappear. Views differ as to whether
and to what extent this creates problems for international trade governance, be it from an economic, political, or institutional perspective. Part of the vast literature on this subject has focused on the relationship
between preferential trade agreements (PTAs) and the multilateral trading system. A key preoccupation is whether regionalism and multilateralism can coexist in a mutually supportive fashion, or whether burgeoning
regionalism is in the process of undermining a global approach to trade relations. If the latter is the case—and many hold this to be so—an obvious supplementary question is whether it matters. The premise of this
paper is thatthe World Trade Organization (WTO) uniquely provides political and economic “public goods”, and this argues strongly
for finding ways of ensuring complementarity between the two avenues for shaping international trade relations. This is a non-contentious starting point, since it would be hard to find
a serious analysis arguing that the disappearance or functional castration of the multilateral trading system
would enhance world welfare or constitute an improvement in global governance. Yet the WTO has signally failed to
regulate regionalism in a systematic manner, thus relegating this over-arching multilateral trade institution to what, in the face of runaway regionalism, Baldwin (2006) referred to as the role of an innocent bystander.
If regionalism is here to stay and the WTO is being sidelined, an obvious question is what the WTO should do about it. This is the subject of the present paper. Three points may usefully be made at the outset. First,
at the risk of stating the obvious, the WTO is not an exogenous entity of ill-defined provenance, but rather a construct of governments seeking to cooperate in trade matters. It is what the collective decisions of
different institutional venues. Secondly, among the more than 300 PTAs currently in force and the dozens still under
negotiation, one encounters a huge variety of agreements in terms of policy coverage and design. Some embrace deep integration, going considerably beyond
WTO rights and obligations, while others are partial, poorly conceived and of dubious economic or lasting political value.1 These differences are not directly relevant to this paper, as it focuses upon rules and
institutional arrangements in the WTO and not individual PTAs. Third, in considering how the relationship between PTAs and the WTO might evolve and be managed, no analysis is offered of the bigger question of
multilateralism should
what the future shape and role of the WTO might be in international governance arrangements. For present purposes, the sufficient argument is that
be preserved and that therefore a better relationship needs to be defined between PTAs
and the WTO. The paper is organized into five more sections. The next section briefly reviews some similarities and differences between PTAs and the WTO. This discussion is intended to
emphasize that: i) PTAs and the WTO are not substitutes ; ii) dispensing with a multilateral venue for doing business in trade matters is not a serious option; and iii) it
therefore becomes necessary to seek out a better accommodation between PTAs and the WTO than has been apparent to date. Section 3 examines the content and nature of General Agreement on Tariffs and Trade
(GATT)/WTO attempts to regulate PTAs. It discusses the difficulties associated with the content and interpretation of the relevant GATT/WTO rules and some aspects of the intellectual debate about how far PTAs
should be answerable to multilateral disciplines. This sets the scene for an analysis in Section 4 of alternative ways of addressing the PTA/WTO relationship. This section also introduces the notion of “soft law”,
which is discussed in Section 5. The paper argues that properly defined, an augmentation of soft law in the WTO’s approach could contribute to a strengthened and more coherent set of international trade
arrangements, as well as help to redefine the “hard law” aspects of the WTO’s responsibilities. Section 6 concludes. A paper of this nature cannot begin to do justice to the rich literature that compares multilateralism
and regionalism on a variety of economic, political, and institutional dimensions. 2 Much of the economic analysis demonstrating that the welfare consequences of PTAs are ambiguous is based on the Vinerian
concepts of trade creation and trade diversion. Some analyses seek to identify the most probable circumstances in which trade creation will trump trade diversion, while many empirical papers have estimated the
relative impact of the two effects. The Kemp-Wan formulation is a static specification of the circumstances where preferential liberalization is unambiguously welfare-enhancing globally. It requires that preferential
made of the welfare consequences of PTAs. What about a world in which the most-favored-nation (MFN) principle applies, in the style of the WTO? MFN trade
would create conditions in which traders were able to do business with the most efficient partners at tariff-inclusive prices. But MFN trade is not free trade, and the theory of the
second best tells us that discriminatory initiatives in an already distorted environment might yield superior welfare outcomes to the status quo when MFN liberalization is unattainable (Horn and Mavroidis 2001;
Grossman-Helpman sense is taken into account (Grossman and Helpman 1994), free trade cannot be attained because of the political motivations of
governments. The argument is that in an MFN world that does not deliver complete liberalization as a result of mixed government motives in
setting policy, PTAs might be able to deliver a superior welfare outcome to an MFN regime. The main driving force behind this result depends on the notion of tariff complementarity, where tariffs against third
parties fall when countries enter into preferential arrangements. A recent empirical paper by Estevadeordal, Freund and Ornelas (2008) backs up this theoretical finding, the practical implication of which seems to
deals have been done, MFN liberalization has lagged behind. A possible explanation for these contradictory results is that the
reluctance to liberalize on an MFN basis following regional trade-opening arises because the liberalization has been exchanged for nontrade benefits. The Ornelas paper does not argue, however, that discriminatory
liberalization cannot hurt third parties—merely that global welfare might improve to a greater extent in some circumstances than under MFN liberalization. Much of the economic analysis is carried out in terms of
tariffs. An important question is whether the same reasoning remains valid when non-tariff or regulatory policies are involved. It would seem that to the extent regulations can reasonably be characterized in terms
of tariff equivalents, the same logic applies. In a world where deteriorated trade opportunities result from divergent and incompatible regulatory regimes, an estimation of the tariff equivalence of measures will not
tell us what we need to know. Combining economic and non-economic objectives in an analysis of the economic merits of preferential trade complicates the picture somewhat. The broad conclusion is that the case
for an MFN-based regime cannot be made unequivocally on pure economic efficiency or welfare grounds. Nevertheless, a growing body of literature has in the last few years examined preferential trade arrangements
in terms of the incidence of trade costs. A good example of this is Baldwin’s work on multilateralizing regionalism (Baldwin 2006).3 In somewhat simplified terms, what Baldwin argues is that a “juggernaut” effect
and a “domino” effect operate over time in the world economy. The juggernaut effect embodies the idea that liberalization begets liberalization through a repositioning of domestic interest groups as continuing
liberalization shrinks the size and influence of the groups that oppose market opening. The domino effect arises as regional agreements stimulate further regional agreements because of the competitive implications
of discriminatory preferences. When these forces are part of a world economy where production sharing and process fragmentation across frontiers are becoming more frequent, and nationally-based interests are
becoming internationalized, constituencies against the prevalence of markets segmented by PTAs become stronger. This is largely a trade cost story, where rules of origin and other transaction costs associated with
crossing trade policy jurisdictions become sufficiently irksome for producer interests to press governments to multilateralize the liberalization they have accumulated preferentially in PTAs. This process of
rationalization is good for efficiency and over time will have the effect of resurrecting a multilateral vision of trade cooperation, which offers the attainment of greater economic efficiency than the alternative. Some
literature has focused specifically on motivations driving PTA formation that cannot easily be captured in formal welfare-analytic models (see Fernandez and Portes [1998], for example). The report of the first
Warwick Commission (Warwick Commission 2007) enumerated several reasons why governments might become involved in PTAs. These include the enlargement of a trading entity to increase bargaining power
with third parties, to counter slow multilateral processes, to go further and deeper in the exchange of policy commitments, to secure foreign policy (political) objectives, to lock in domestic reforms, to insure against
future policy instability, and to avoid exclusion in a world of many PTAs. Turning to non-economic reasons why a multilateral approach may be preferred, or at least why maintaining a multilateral system of trade
governance is regarded as desirable, several factors have been identified. They are largely non-quantifiable and have to do with notions of inclusiveness, peace, and security. The WTO World Trade Report 2007
(WTO 2007), for example, argues that experiences in the first and second half of the 20th century are a study in contrast between a world without a system of global governance and one that developed international
institutions for cooperation. The first 50 years were punctuated by two world wars, a trade war, and generalized bouts of acute economic hardship. The post-World War II architects of international cooperation
learned from these experiences and were determined to craft a system of international governance that entailed pre-commitment on policy behavior, imparted greater certainty and security in international relations,
and fostered a sense of shared purpose in maintaining political and economic harmony. The post-war political and economic institutions are under strain today in a very different world from the one in which they
were constructed, and this has engendered pressure for reform. But reform is one thing and institutional destruction is another. The idea that global institutions are
necessary in an interdependent world supports a multilateral dimension to trade relations. To sum up, it is apparent that
economic welfare analysis does not offer unambiguous guidance for preferring non-
discriminatory over discriminatory trade policy. But even if one were able to specify
circumstances where multilateralism did better on these grounds, this would not eliminate motivations for PTAs that can
define cooperation in ways beyond the reach of a non-discriminatory regime. By the same token, the
multilateral trading system delivers benefits of both an economic and non-economic nature
that are missing in a PTA framework. Insofar as these two approaches to trade cooperation are not perfect substitutes, the case is strong for finding ways of strengthening
the ability of the WTO to influence and discipline PTAs, or at least to blunt their more exclusive and distorting features.
3. Development Failure
The proliferation of RTAs aggravates the developmental disparity of trading nations, including
uneven distribution of benefits from free trade. In general, large regional blocs, such as the European Union, may
increase their internal welfare, but impoverish smaller non-members and widen the [*71]
gap between rich and poor countries. n169 According to Ben Zissimos and David Vines, bloc expansion creates a "terms of trade" gain for
the bloc members at the expense of non-members, especially smaller ones. n170 In other words, while members of large blocs can enhance
their economic welfare through a deeper internal integration and resultant economies of scale, smaller non-
member economies' exports to these blocs are continuously threatened by these
artificial terms-of-trade gains by large blocs. Additionally, small, poor trading nations may still
suffer even as members of RTAs with large, rich nations. The "hub and spoke" model provides a
powerful tool with which to analyze development failure of North-South RTAs. A hub (a
large, rich country) can enjoy free access to the spokes' (small, poor countries') markets to the benefit of its export
industries, while at the same time benefiting its import industries by providing access to the spokes' cheap
raw materials. n171 However, the spokes cannot benefit in the same way, unless they
form a web of RTAs (a "rim") amongst themselves. n172 Even if the spokes can experience an initial
improvement in market access to the hub, such benefits tend to evaporate when multilateral trade liberalization
subsequently lowers trade barriers. n173 Also, the spokes, not the hub, suffer most welfare loss due to
the exclusion of important sectors, such as agriculture , from the North-South RTAs. n174 Alvin Hilaire and
Yongzheng Yang demonstrated that the exclusion of agricultural liberalization from the U.S.-Chile FTA resulted in substantial welfare loss to Chile, with no major negative impact
on the United States. n175 Dominique van der Mensbrugghe, Richard Newfarmer, and Martha Denisse Pierola confirmed through an economic
model the existence of this developmentally pernicious effect of the recent trend of bilateral deals between North and
South. n176 Using the Global Trade Analysis Project database, they performed a simulation based on a hypothesis that all
[*72] developing countries would sign bilateral trade agreements with rich countries, such as the United States,
the European Union, Japan, and Canada. n177 The result was truly revealing. While multilateral trade liberalization would bring
developing countries a gain of 109 billion dollars in 2015, bilateral deals with rich countries would
cause them a loss of twenty-two billion dollars in the same year. n178 Moreover, such loss would be concentrated disproportionately on low
income countries (nineteen billion dollars) over middle income countries (2.6 billion dollars). n179 More seriously, however, parties to hub-and-spoke FTAs are
United States as a hub that extracts far superior terms from its bilateral FTA spokes . n181 This selfish
hegemony is engineered by the aggressive unilateralism embedded in Section 301, n182 which was enacted to remedy allegedly unfair trade practices adopted by foreign countries
and thus protect commercial interests of domestic producers. n183 Leftist development theorists might agree with Bhagwati's criticism. The "dependency theory" casts a gloomy
It contends that a "center"
vision over free trade initiatives, such as FTAs. n184 (powerful country)exploits "peripheries" (less powerful
trading partners). n185 It was in this context that the World Social Forum held in Porto Alegre, Brazil in January 2005 sounded a warning of immiserizing effects of these North-
South RTAs. Some participants, including the Africa Trade Network ("ATN"), argued that the ongoing "Economic Partnership Agreement ("EPA")" negotiations between the
European Union and African, Pacific, and Caribbean countries demand far deeper concessions from the poor than would otherwise be required under the WTO. n186 The [*73]
ATN used the World Social Forum to advance the "Stop EPA Campaign," which it operates along with other non-governmental organizations ("NGOs") including Oxfam
International, Action Aid, and the Third World Network. n187
AT: RTA SOLVES TRADE
Excessive regionalism causes trade wars and diverts economic flows – multilateral
foundation key
Neumann 9 (Ildiko Virag-Neumann, lecturer of Applied Economics at the University of
Pannonia, Hungary, “Regional Trade Agreements and the WTO”, 2009, http://kgk.uni-
obuda.hu/system/files/32_Neumann-Virag.pdf, TMP)
International economic order is rapidly changing. Until the early 1990s, multilateralism was dominant and regional remained
marginal. Today, however, regionalism is well acknowledged as one of the two pillars of international economic order, together with
multilateralism. It will be thus important to explore the harmony between regionalism and multilateralism .The question is whether
regionalism may be a faster way to reach multilateralism or, rather, hurt multilateral liberalization. Are regional integration
arrangements “building blocks, or stumbling blocks,” in Jagdish Bhagwati’s phrase [17], or stepping stones toward multilateralism?
Since the end of the Uruguay Round, the world trading system has experienced the emergence of a large
group of regional blocs. Ranging from the NAFTA and the Mercosur to the APEC and the enlargements of the EU, regional
blocs seem to become factors that have to be taken seriously in the future trading system. One of the most striking development in the
world trading system since the mid 1990s is a surge in Regional Trade Agreements (RTAs). “Regional Trade Agreements (RTAs)
are a major and perhaps irreversible feature of the multilateral trading system” is the opening sentence
of a Working Paper of Crawford and Fiorentino (2006) [11]. Initially WTO encouraged the growth of RTAs because it believed that
regional integration initiatives can complement the multilateral trade regime. However, the high proliferation of RTAs
in global trade and increased diversion of trade through this route is increasingly becoming a cause for
concern for the multilateral trading system under WTO. Many countries which traditionally
relied on the multilateral trade regime are increasingly joining regional agreements to promote trade.
Regional Trade Agreements (RTAs) are defined as groupings of countries which are formed with the objective of reducing barriers to
trade between member countries. Contrary to what the name suggests, these groupings or unions may be concluded between countries
not necessarily belonging to the same geographical region. Depending upon their level of integration, RTAs can be broadly divided
into five categories: Preferential Trade Agreements (PTAs), Free Trade Agreements (FTAs), Customs Unions (CUs), Common Markets
and Economic Unions. The main reason for WTO member’s preference of bilateral FTAs1 before multilateral FTAs or CUs is probably
the mere fact that bilateral FTAs are easier to conclude than multilateral FTAs and certainly a lot easier than a CU. Apart from this
there are two types of regional agreements which provide “deep integration”. 2 Among the Regional Trade Agreements, a large majority
of the agreements are PTAs or FTAs. In contrast, there are only a handful of Customs Unions, Common Markets and Economic Unions
worldwide. The new generation of RTAs, especially those comprising developed countries, includes more regional rules on investment,
competition and standards; as well as provisions on environment and labour. Most of these new agreements also include preferential
regulatory frameworks for mutual services trade. These explanations can be divided into three broad categories. First is the traditional
explanation of welfare effects through trade liberalization and the consequent gains from trade at a regional level. Viner, [14]
introduced the concepts of “trade creation’ and “trade diversion” and showed that the net effect of trade liberalization on a regional
basis is not unambiguously positive. He pointed out that RTAs can lead to trade creation if RTA members switch from inefficient
domestic producers and import more from efficient producers from other members of the RTA. In this case, efficiency gains arise from
both production efficiency and consumption efficiency. Trade creation and trade diversion have opposite welfare implications and the
net effect will depend upon which of these two effects dominate. Krugman (1991) [11]is of the opinion that the beneficial effect of a
regional trade agreement will depend on whether there is enough “inherent regionalism” in the transport costs between the member
countries of the RTA. According to Bhagwati,[17] trade diversion is more likely to dominate trade creation in
most situations. When trade is multilateral, i.e. when countries import from and export to union members as well as outside
countries, trade diversion is inevitable. There is an emerging consensus among economists that frustration with the
multilateral trading system is one of the prime reasons behind the current growth of regionalism .
Krugman suggests that countries find regionalism an easier alternative because large number of participants in multilateral trade
negotiations reduces the cost of non-cooperation and creates rigidity in the system. Also according to him, modern trade barriers are
much more complicated to negotiate in a multilateral forum and most countries find it easier to deal with these issues on bilateral or
regional level. Baldwin [14] in his “domino theory of regionalism” describes similar motivation for joining regional groupings. He
believes that regionalism did not occur because countries have lost faith in GATT or because USA has adopted regionalism. There is
another big debate in the current international trade literature about whether regionalism can help or hinder the multilateral trading
system. There are opposing views among economists about the role of regionalism in the current global trade system. Krugman is of
the opinion that regional trade blocs are welfare improving in nature and are unlikely to have any negative impact on the multilateral
trade system. Baldwin [14] does not see regionalism as a threat to the multilateral trading system. According to him, because trade is
“already quite free in major trading nations, few regional liberalizations are capable of creating anti-liberalization forces”. Therefore,
he concludes that most regional trade agreements will weaken the opponents of trade liberalization and hence will promote and foster
multilateral trade liberalization. But the dominant view among mainstream economists suggests that regionalism is harmful for the
multilateral trading system. For example Bhagwati and Krueger [18] think that preferential trade agreements
are essentially discriminatory in nature and they view the drift towards PTAs as a serious
threat to the multilateral trading system. Increased regionalism is dangerous because it
not only leads to inter block trade wars and domination of small countries by bigger partners
also because it reduces the enthusiasm for participation in the multilateral
in the regional blocks but
trade regime. They worry that RTAs divert attention from the multilateral trading system.
They argue that most preferential agreements lead to trade discrimination and thereby harm
the multilateral trading system. Bhagwati also argues that the growing number of PTAs may lead to
a complex system of regulatory structures. This phenomenon, known also as the “spaghetti-bowl” problem,
may lead to complexity and lack of transparency in the global trading system. As well known,
the WTO was set up to liberalize international trade on the principle of non-discrimination and to eliminate
trade barriers through multilateral negotiations. It has contributed to expanding world trade and is expected to do more if the current
DDA multilateral negotiations are completed ever. Some 421 RTAs have been notified to the GATT/WTO up to December 2008. If we
take into account RTAs which are in force but have not been notified, those signed but not yet in force, those currently being negotiated,
and those in the proposal stage, we arrive at a figure far more than 400 RTAs. They are scheduled to be
implemented by 2010. Of these RTAs free trade agreements and partial scope agreements account for over 90% of the turnover
while CUs account for less than 10%. Regional trade agreements represent an important exception to the
WTO's principle of nondiscrimination. According to the WTO rules, countries within a RTA can trade among themselves
using preferential tariffs and easier market access conditions than what is applicable to other WTO member countries. As a result,
WTO member countries that are not a part of the RTA lose out in these markets. As
increasing amount of global trade is being diverted through this route, there is a certain amount
apprehension about the role of regional trade agreements in WTO.In general Article I (GATT,1947) forbids any preferential trading
arrangements (the „Most Favoured Nation” principle). An exception to this is that Regional Trade Agreements are permitted, so long
as they take the form of customs unions or free trade areas satisfying the conditions of Article XXIV, essentially that „substantially all
trade” is fully liberalised, and that there is no overall increase in external protection. Article XXIV being an exception to the MFN
principle allows discrimination instead of combating it. The formation of an FTA or CU is regulated under Article XXIV GATT 1994,
which provides for more beneficial treatment between members to a RTA than that afforded by the schedule of concessions negotiated
under the WTO Article XXIV, consequently, provides for an exception from the MFN-Principle.” [21] The MFN exception stated in
Article XXIV may at first sight seem illogical, since the only way to be excused from applying non MFN consistent and discriminatory
trade preferences is to completely discriminate, (MFN denies all discriminatory preferences meanwhile the MFN exception in Article
XXIV allows discriminatory preferences if they are completely discriminatory against the non RTA members).Other exception are
General Agreement on Trade in Services (GATS)Article V, The Enabling Clause3 and the Generalized System of Preferences (GSP).
There is an increased attention being paid to regional arrangements. The threat to the multilateral trading system does not appear to
be as large as is often reported. The debate about whether RTAs are” building blocks or stumbling blocks”
for global freer trade, which was so virulent in the 1990s, faded
because, whatever the answer to the question, in practice
RTAs have made so little difference either way. The impact on the global trading regime of the
hundreds of RTAs notified to the GATT/WTO as being in contravention of the MFN principle has been trivial compared
to the establishment of multilateral trade law based on the nondiscrimination
principle. The dissemination of regionalism can contract and distort non-discriminatory multilateralism .Countries are too
diverse in their developments. Negotiations under the framework of WTO take too much time as well. Regionalism is then an
alternative to consider, at least, for countries geographically close to each other, especially for countries with close economic exchanges
and interests.
WTO structure is key – regionalism alone results in bad trade governance and
minimal trade growth
Leal-Arcas 11 (Rafael, PhD – European University Institute, JSM – Stanford Law, LLM –
Columbia Law, M. Phil – London School of Economics, BA/JD – Granada University, Senior
Lecturer in International Economic Law & European Union Law and Deputy Director of
Graduate Studies @ Queen Mary University of London, “Proliferation of Regional Trade
Agreements: Complementing or Supplanting Multilateralism?” Winter 2011, 11 Chi. J. Int'l L.
597, TMP)
However, there are also negative effects of RTAs on the multilateral trading system. There is less enthusiasm for
multilateral trade negotiations (like that of the Doha Round) when regionalism is doing well, which is currently the case. The current
proliferation of RTAs also creates less transparency in the multilateral trading system
and rules (that is, the so-called spaghetti bowl, as can be seen in map 5 below), because it is not clear who is
doing what with whom, given that everyone is concluding RTAs with everyone.94 This lower
level of transparency in the multilateral trading rules results in traders being subject to multiple,
sometimes conflicting, requirements. Trade and investment diversion could be
another negative effect of RTAs on the multilateral trading system. However, some scholars argue that regional trade
liberalization may create (rather than divert) significant economic growth within a region, which can, in turn, generate more trade with the rest of the
world.95 In this respect, after analyzing a report by the Asian Development Bank published in 2008, 96 Masahiro Kawai and Ganeshan Wignaraja found
“that business in the [Asian] region tend to view FTAs as a benefit rather than a burden, and that they use them to expand trade to a far greater degree
than had been previously thought.”97 That said, economic studies of FTAs have shown that the trade-
creation effects may often be smaller than the trade-diversion effects, given that trade
between the participants replaces trade between the participants and non-participants. It seems,
therefore, that it is not clear whether RTAs create or divert trade.98 Another effect of RTAs is arguably that the weakest countries
tend to be left out. Furthermore, there is a risk of polarization in the international trading
system with the tremendous proliferation of RTAs currently taking place. As such, four large regions
appear to emerge as a result of RTA proliferation: (1) the European RTA network,99 (2) the Western hemisphere RTA
network (NAFTA, Mercosur,100 the Andean Community,101 the Caribbean Community (CARICOM)102), (3) the Asia-Pacific RTA
network,103 and (4) the African RTA network. Having said all this, multilateralism and
regionalism/bilateralism are not mutually exclusive. As a matter of fact, several countries in different regions of the world
work intensively on regional treaties about integrating regional markets and free trade. The EU is one example. Even though European
countries have worked for European integration in several areas , such as market integration, for more than fifty
years, European countries—with the European Community on the sideline with wide influence in the GATT and now the
EU as a Member of the WTO—have worked to improve the multilateral system.104 In the case of Africa, there
is the African Economic Community (AEC),105 and in South America, there is the Union of South American Nations (Unión de Naciones Suramericanas–
UNASUR),106 the Andean Community, and Mercosur. Those organizations all work for a deeper integration of regional markets, but the various
countries that belong to these regional organizations are making serious efforts on the multilateral
level as well. Although the Doha Round has been quite challenging, making only slow progress since its inception, it
must be noted that several agreements are being negotiated, and 153 WTO Members,
all with different interests, are taking part in these multilateral negotiations. Looking historically at the
GATT/WTO, the number of multilateral agreements has increased, even as regional agreements
have been concluded by GATT/WTO Members. One possible way to bridge the gap between multilateralism and regionalism/bilateralism is
by making more use of plurilateral agreements,107 which allow smaller groups of WTO Members to move forward, outside the single undertaking, on
issues important to them. An example of a successful plurilateral agreement is the 1996 Information Technology Agreement— dependent on a critical
(but not universal) mass of signatories. Another example is the plurilateral Government Procurement Agreement,108 which is one of the most relevant
One wonders whether RTAs are the center of
agreements in the WTO today, with potential for membership expansion. VII. Conclusion
gravity of the international trading system, whether the multilateral trading system is the center of gravity, or
whether we have a symbiosis between regionalism and multilateralism in the international
trading system and, if not, how we can get there given that they coexist. RTAs might certainly allow developing
countries to secure preferential treatment vis-a-vis their competitors. An example is the European Community-Mexico RTA, whereby the Europeans
provide preferential treatment to Mexico.10' This may provoke the Brazilians to try to conclude an RTA with the EU in order to obtain preferential
treatment from the Europeans. RTA partners make concessions that they would not extend to other WTO Members in multilateral trade negotiations,
because coming to an agreement regionally is easier than multilaterally. A good example is the US-Singapore FTA, which includes clauses on competition,
thereby going beyond the WTO agenda. However, the US found it very difficult to make concessions to India on agriculture in the multilateral context as
RTAs nevertheless have limitations, such as the
evidenced by the July 2008 WTO mini-ministerial conference.
fact that RTA negotiations tend to be asymmetrical. This asymmetry often results in
imbalanced deals, such as the case between Mexico and the US in the context of NAFTA. This
article concludes that the proliferation of RTAs implies the erosion of the WTO law principle of
non-discrimination and wonders whether this means the beginning of the end of
multilateralism. It also concludes that the single undertaking—which seems too ambitious in today's multilateral trading system—is no longer
feasible because the WTO has more Members than ever (and WTO membership is an ongoing process, with more Members to come in the near future)
and covers more topics than ever, which are more complex than ever. As an alternative, this article suggests variable geometry (that is, the idea that only
a few WTO Members will benefit from plurilateral agreements on several topics on the agenda) and sectoral agreements (that is, all WTO members
participate in negotiations and benefit from the agreed outcomes, but only one topic is discussed at a time, as was the case of the WTO Telecoms
Agreement) as a way forward to unblock the multilateral trading system. The variable-geometry approach has the advantage of removing the current
frustration at the WTO negotiating table—and sometimes violent protests organized by civil society—with its slow negotiating pace. However, one
disadvantage is that developing countries at the WTO might feel marginalized. In relation to the Doha Round—or any round, for that
matter—there is a need for serious political will if we want it to succeed. It is evident that there is currently an institutional
fatigue. This article therefore proposes a Doha-light option—lowering the expectations of the Doha Round. This translates into less market opening
for agricultural products. Nevertheless, it should be made clear that the big trade challenges of
today, whether climate change or energy resource scarcity, cannot be solved
without multilateralism. Bilateral and regional agreements offer no substitute for global
rule-making and coherent governance of a globalized economy. Moreover, bilateral and
regional deals do not come close to matching the economic impact of agreeing to a
global deal. Therefore, RTAs can be a complement but not an alternative to multilateralism.
AT: RTA SOLVES ASIA-PACIFIC
Doesn’t solve in Asia
Kurlantzick 13
(Joshua Kurlantzick is a senior fellow for Southeast Asia at the Council on Foreign Relations
(CFR). Mr. Kurlantzick was most recently a scholar at the Carnegie Endowment for
International Peace, where he studied Southeast Asian politics and economics and China's
relations with Southeast Asia, including Chinese investment, aid, and diplomacy, “The financial
crash” April 2, 2013, Pakistan Today, Vol. III No. 273, TMP)
Even if the slowdown soon ends: if Xi Jinping in China and Barack Obama in the US can use their mandates to push for freer trade and global integration:
deglobalisation will last decades, putting a ceiling on how much the world economy
the long-term effects of this
can ever rebound .For at least a century, the world economy has run in cycles, in which integration,
in the form of closer trade and financial ties, cross-border bank lending, and rising trade and migration, has been followed by
short periods of slowdown and deglobalisation, periods in which the world economy became less
linked together. At times, the slowdown and de-globalisation was precipitated by world wars, as in the 1910s. At other times, it was
precipitated by major energy shocks, such as in the early 1970s. Yet after each period of deglobalisation, the world
economy quickly bounced back, with banks soon seeing new opportunities to lend abroad, new trade rounds launching, new companies
springing up to increase global exports, and new financial services products emerging to tie markets together. Not so this time. This de-
globalisation is so severe that its effects will not be easily reversed. In nearly every leading nation, not only politicians on the left: the opponents of
globalisation in earlier periods: but also on the right have come to a consensus sceptical of greater economic integration. In
the 2012 US
presidential campaign, Mitt Romney attacked trade with China even more than Barack Obama, while
both Democrats and Republicans almost unanimously supported new measures to block Chinese
telecommunications firm Huawei from investing in 4G phone networks in the US: and received
no opposition even from the most pro-business Republicans. Meanwhile in France the right-leaning Gaullist parties,
under Nicolas Sarkozy and his heirs, have become as supportive of greater protectionism as the Socialist Party, which under the current president,
Francois Hollande, has enacted new import restrictions on major trading partners like South Korea and pushed French supermarkets to sell only French
products.Meanwhile, leaders of many developing nations have become nearly as sceptical of globalisation as their western peers.In the past year, major
coalition partners of the Indian Congress government have left the coalition to block the prime minister's efforts to open up India to foreign retail. In
Brazil, the president, Dilma Rousseff, has increasingly pushed for greater protection of strategic Brazilian industries, telling the UN: "We cannot accept
that legitimate initiatives of commercial defence by developing countries can be classified as protectionist."Politicians, at least, often exit the scene without
having lasting effects. But more frightening, the financial institutions that once propelled globalisation have retrenched so badly that their shift will last
for years. Today, as crisis-hit European nations have passed legislation forcing banks to maintain higher capital requirements and to invest more within
their own borders, these European institutions, which had been the major sources of emerging world investments, have started a process of massive
deleveraging. Until two years ago, European banks accounted for about 90 per cent of all foreign bank lending in Africa, eastern Europe, and the Middle
The World Trade
East. That figure is dropping rapidly.Trade, one of the other pillars of globalisation, also will take decades to recover.
Organisation's current round of negotiations, known as the Doha Round, has been stalled for years, and the regional free
trade agreements enacted by Asian nations in part to replace Doha contain far less liberalisation
than meets the eye. A third major pillar of the globalisation of the 1990s and 2000s was increased migration.But as the economic
slowdown has morphed into a longer-term period of stagnation, the tolerance of wealthier nations for migration has
ebbed. In the US, the Republican Party's 2012 platform called for "self-deportation" of illegal migrants in the US. This tough stance is being echoed in
many other wealthy nations, where the level of anti-immigrant sentiment is high.Even
tiny Singapore, a country that despite
the global slowdown has maintained a GDP per capita of $61,000 at purchasing power parity and
which depends on trade and foreign workers to prosper, has seen its public turn sour on migration.
Anti-foreign worker sentiment helped propel the Singaporean opposition, dormant for decades, to its strongest showing ever in last year's elections, as it
criticised the ruling party for being too lenient in allowing migration.As trade flows, financial globalisation, and cross-border migration recede, the state
While state-owned
has returned to power around the world, turning back the gains made by free markets in the 1990s and early 2000s.
enterprises only controlled six times as much of China's industrial output as private firms in 2004,
today they control 11 times as much. And they are hardly unique. In the years 2004-2009, while 120 state-
owned companies made their debut on the Forbes list of the world's largest corporations, more
than 250 Western private companies fell off that list.For the global economy, this probably will
mean a dearth of new entrepreneurial companies, particularly in developing nations. In
addition, it will mean that trade wars probably will only escalate, since these
regional trade deals do not hold world leaders to the tough standards that previous WTO
rounds did; in the long run, this could lead to an overall decline in trade, which would make
the entire international economy far less dynamic, and could even lead to greater political
tensions between big trading powers such as the US and China.
TPP devastates China Relations- seen as a containment strategy
Huang 14 (Yukon, Senior Associate Asia Program at the Carnegie Endowment for International
Peace, July 15, 2014, “China and Pacific Accords”,
http://carnegieendowment.org/2014/07/15/china-and-pacific-accords/hfxh///TS)
China, while a member of the Regional Comprehensive Economic Partnership, remains wary of
the Trans-Pacific Partnership: it sees the TPP as an American effort to contain Chinese influence
in the region. It might behoove Beijing to join the partnership, however, so as to have greater influence over negotiations. It
certainly behooves all concerned to work together to keep Asia’s economic dynamism rolling. The Trans-Pacific Partnership (TPP)
left the dock several years ago, with China seemingly happy to let it sail without providing a cabin for the soon to be designated
world’s largest trading nation. Was this a good decision for the world’s second-largest economy? Will that trade grouping
compete with or complement the Regional Comprehensive Economic Partnership (RCEP) that
China is already involved with? Getting the details of these mega-regional trade deals wrong
could seriously damage Asia’s regional economic infrastructure – a point which is often overlooked, not to
mention China’s own longer-term interests in shaping the outlines of such initiatives. US policy-
makers stress that the TPP is designed to set the highest standards for future trade and investment treaties including principles that
would affect a number of sensitive issues including intellectual property rights (IPR), labor and environmental regulations and
treatment of state enterprises. In doing so, it would influence the framework for future multilateral or bilateral negotiations
including help build a platform for the seemingly moribund WTO sponsored discussions. Clearly setting such high
standards is also in America’s interests since in most areas, it is seen as the benchmark for
global standards. Many Chinese policy-makers, however, view the TPP with suspicion, charging
that it is part of a containment strategy by the US. Yes, the deal may be presented as setting a twenty-first century,
high standard agreement that will benefit the global economy, but it is also seen as furthering America’s strategic interests in the
Asia-Pacific. After all, how else can one explain why an initiative that began in 2005 among four relatively minor global players
(Singapore, Brunei, Chile and New Zealand) was taken over by the US in 2008 and elevated into a mega regional pact that has now
brought in such major economies as Japan, Canada, Mexico and possibly even South Korea and Thailand in due course. That the
TPP got so much play at the same time that the much heralded American “pivot” or rebalancing
toward Asia was announced has only strengthened perceptions among many Chinese policy-
makers that the TPP is part of some kind of strategy to check its growing regional clout. This
would explain the interests of countries like Vietnam and Malaysia whose position on issues like
the role of state enterprises and IPR is closer to that of China than the U.S.
AT: WTO CAUSES WARMING
WTO does not cause warming – trade solves emissions better
Tamiotti 09,
(Ludivine Tamiotti is an environment expert for the WTO, “Trade and Trade and Climate
Change”, https://www.wto.org/english/res_e/booksp_e/trade_climate_change_e.pdf, TMP)
2. Scale, composition and technique effects How does trade opening aff ect greenhouse gas
emissions? Trade economists have developed a conceptual framework to examine how trade
opening may aff ect the environment. This framework, first used to study the environmental impact of the
North American Free Trade Agreement (NAFTA), breaks down the impact of trade opening into three “eff
ects”: the scale eff ect (i.e. how greenhouse gas emissions may increase as a result of increased economic activity); the
composition eff ect (i.e. the way trade opening, and consequent changes in relative prices, may aff ect the relative size of the various
sectors that make up a country’s production); and the technique eff ect (i.e. the manner in which technological improvements may
be adopted to reduce the emission-intensity of the production of goods and services) (Grossman and Krueger, 1993). Export Volume
(1950 = 100) Per cent of World GDP Year Exports Share of Exports in World GDP 3500 3000 2500 2000 1500 1000 500 0 1950
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Sources: WTO (2008b) and Maddison (2001). FIGURE 1: Rising
trade share of global output, 1950-2007 50 Trade and Climate Change Copeland and Taylor
(2003) provide a defi nition of these eff ects from a general equilibrium model of trade and the
environment. Some international organizations, such as the Organization for Economic Cooperation and Development
(OECD) (1994), have adopted or extended this conceptual framework in order to evaluate
the environmental impact of trade agreements.6 This analytic framework can be applied
to investigate the link between trade and climate change. While the scale eff ect may
worsen climate change, the technique eff ect may help to mitigate it. Th ere is some
uncertainty, however, about the impact the composition eff ect would have on climate
change. Th e “scale eff ect” refers to the increase in greenhouse gas emissions resulting
from an expanded level of economic activity. According to Copeland and Taylor (2004), the scale eff ect can
be defi ned as the increase in the value of production, measured in world prices as they were
prior to trade opening.7 If there are unemployed resources (labour, capital or land) prior to
liberalization, trade opening will allow greater utilization of these resources and will thus lead to
an expansion in the level of production.8 Th is increased level of economic activity will, in turn,
require greater energy use and since most countries rely on fossil fuels as their
primary energy source, the scale eff ect will lead to higher levels of greenhouse gas
emissions. Furthermore, increased trade will give rise to a greater use of cross-border transportation
services, which will increase greenhouse gas emissions even further. Th e scale eff ect is
conceptually diff erent from economic growth, since the latter is a result of capital
accumulation, population growth and technological change.9 Nevertheless, there is a
presumption that, in theory, greater trade opening will lead to economic growth
through (indirect) mechanisms that aff ect the rate of capital accumulation and
improvements in productivity.10 Given that economic growth is closely linked with energy use,
this will magnify the impact on greenhouse gas emissions. Despite this, it has not been easy to demonstrate a
statistically signifi cant relationship between trade barriers, in the form of tariff and non-tariff
measures, and the rate of economic growth (Baldwin, 2000). In the 1990s, a number of studies
appeared to show that “open” economies (with liberal trade policies) grew faster than “closed”
economies. Dollar (1992), for example, estimated that the growth rate of Latin American and African economies would increase
by between 1.5 and 2.1 per cent if they adopted more open trade policies. A study by Sachs and Warner (1995) fi nds that developing
countries with more open trade policies grew at a rate of 4.5 per cent per year, while closed economies grew by only 0.7 per cent per
year. However, these studies have been criticized for the use of measures of openness
which are closely linked with other indicators of good economic performance,
such as lack of restrictions on foreign exchange markets (Rodriguez and Rodrik, 1999). Th ere
is also a problem involving the endogeneity of trade and growth (Edwards, 1998). Th is
refers to the possibility of a twoway rather than a one-way relationship between trade and
economic growth. In other words, while more trade may have a positive impact on
economic growth, growth may, in turn, lead to an increase in trade. Th us, a positive
relationship between trade and growth does not automatically tell us that trade is causing higher
growth. Baldwin’s (2000) survey is careful to point out, however, that these problems should not be
interpreted as indicating that international economic policies in general or
international trade have only an insignifi cant eff ect on economic growth. Th e
“composition eff ect” refers to the way that trade opening changes the share that each
sector represents in a country’s production in response to changes in relative prices, resulting in
the expansion of some sectors and the contraction of others. Th e consequent increase or decrease of
greenhouse gas emissions will depend on whether the emission-intensive sectors are expanding or contracting. Changes in the
structure of a liberalizing country’s production will depend on where the country’s “comparative
advantage” (in terms of resources and capacity) lies: if its comparative advantage is in sectors which
are less emission-intensive, then trade opening will lead to lower greenhouse gas
emissions, but if it is in the more emission-intensive sectors, then liberalization will lead to greater emissions of greenhouse
gas. Part II: Trade and Climate Change: Theory and Evidence 51 Part I Part II Part III Part IV In addition, the “pollution-haven
hypothesis”11 implies that the composition of production in a liberalizing economy will also respond to diff erences between
countries in environmental regulations. If a country has stringent environmental protection measures in
place, the increased competition brought about by trade opening may lead emission-intensive
sectors to relocate to countries with weaker regulations. In the context of greenhouse gas
emissions, the eff ect of international diff erences in climate change policies raises
the likelihood of “carbon leakage”. This term refers to a situation in which the measures
taken by some countries to limit their carbon dioxide (CO2 ) emissions at a national level do not
ultimately result in a global CO2 reduction, because industries emitting high levels of CO2
simply relocate to countries which do not impose such strong penalties on emissions. Th is topic is
reviewed in Part IV. Changes in the composition of the liberalizing country’s production,
whether resulting from its “comparative advantage” or from the pollution-haven hypothesis, will have an eff ect on
how the production of its trade partners is changed. If trade opening results in a
country producing fewer emission-intensive goods, then they must be procured
elsewhere, giving rise to an expansion in the production of those goods in other parts of the
world. Th e pattern of expansion and contraction of certain sectors of industry in the liberalizing country will be mirrored in
reverse in the rest of the world. Th is suggests that trade opening can lead to some countries
“specializing” in more emissionintensive industries, while other countries
concentrate on “cleaner” industries. Th e net eff ect on greenhouse gas emissions at the
global level will depend on the relative strengths of these eff ects. Finally, the technique eff ect
refers to improvements in the methods by which goods and services are produced,
so that the quantity of emissions released during the production process declines. Following
Grossman and Krueger (1993), this reduction in greenhouse gas emission may come about in
two ways. First, more open trade will increase the availability and lower the cost of
climate-friendly goods and services. Th is is particularly important for countries which do not
have access to climate-friendly goods and services, or whose domestic industries do not produce
such goods and services in suffi cient amounts or at aff ordable prices. Access to the
technologies used in the production of climate-friendly goods and services should
reduce the energy required during production, and thus reduce emissions. For
exporters, the prospect of increased market access would provide an incentive to develop new goods and services that help mitigate
climate change. Such potential benefi ts of more open trade highlight the importance of the current negotiations under the Doha
Round, which aim to liberalize environmental goods and services (see Section III.B). Second, the increase in
income levels that trade opening brings about can lead the general public to
demand lower greenhouse gas emissions (a cleaner environment is a “normal” good).12 Increased
incomes or wealth gives populations the freedom to be concerned about other aspects of their
well-being, such as better environmental quality. Grossman and Krueger (1993) conjecture that this
public demand is perhaps the most important outcome of the technique effect. For
rising income to lead to environmental improvement, however, governments need to respond
to the public’s demands with the appropriate fi scal and regulatory measures. Only if
such measures are put in place will firms adopt cleaner production technologies, so that a
given level of output can be produced with lower greenhouse gas emissions than
previously. Torras and Boyce (1998), who examined the available evidence on international variations in seven
indicators of air and water quality, find that the degree of inequality in incomes, as well as
inequalities in levels of literacy, political rights and civil liberties, had a substantial impact on
the quality of environmental protection in low-income countries. Countries which had a
more equitable distribution of income and which achieved greater equality in
literacy, political rights and civil liberties tended to have better environmental
quality. This evidence suggests that increases in income from trade opening may not translate
into environmental improvements if the economic benefi ts are not shared more equitably
among the population. While trade openness does not appear to be a major factor in
income inequality in developed countries, the evidence is more mixed for developing
countries.13 52 Trade and Climate Change Due to the opposing nature of the scale and technique eff ects, Grossman and
Krueger’s study suggests that the relationship between per capita income and environmental quality may be non-linear. For
countries with low levels of per capita income, increased economic growth may initially lead to deterioration of environmental
quality. Only once a certain income threshold has been crossed do further increases in per capita income lead to gains in
environmental quality. Th e “environmental Kuznets curve” (as this inverted U-shaped relationship between environmental quality
and income has been called) has generated a great deal of research interest. Much of the theoretical literature on this topic has
attempted to explain the nature and causes of this non-linear relationship between per capita income and environmental quality. Th
e explanations have been varied. Some have alluded to indivisibilities in technologies, which means that below a certain threshold of
income only polluting technologies are used, while cleaner technologies are used only when income rises above that threshold
(Stokey, 1998). Some attribute the non-linearity between income and environmental quality to the fact that pollution is generated by
consumption while there are increasing “returns to scale” in abatement, which implies that abatement of pollution becomes more
effi cient as an economy becomes richer (Andreoni and Levinson, 2001). Still other explanations ascribe the environmental Kuznets
curve to the presence of pollution stock externalities, which means that if the stock of pollution depreciates quickly the net benefi ts
from pollution control will rise with income (Kelly, 1997). While others, still, have described it as a consequence of developed
countries exporting their older, more pollution-intensive technologies to developing countries (Suri and Chapman, 1998). In terms
of political economy, the presence of advanced collective decision-making institutions (such as representative democracy) in
developed countries and the absence of such institutions in some developing countries may explain this inverted U-shaped
relationship (Jones and Manuelli, 1995). However, the “environmental Kuznets curve” might not be
applicable to global pollution. Since greenhouse
AT: INDIA WARMING - ECON O/W
WTO ruling helps econ---won’t hurt warming efforts
Shimizu, 16
(Aiko, March 10, reporter @ Bloomberg New Energy Finance. BA University of Chicago, MA
Columbia University’s School of International and Public Affairs and JD UPenn
globalriskinsights.com/2016/03/what-does-the-wto-ruling-mean-for-u-s-india-solar/)//cb
From a political standpoint, the WTO ruling in the U.S.-India case sent a strong message to India and other countries that may have
been considering the implementation of such domestic content rules. While these measures are protectionist, it
makes sense for governments to implement such rules to stimulate the economy and
create jobs, especially in times of slow economic growth and rising levels of unemployment.
Indeed, since the implementation of the National Solar Mission, major solar companies have
announced their plans to establish factories in India to produce solar cells, modules, and panels,
leading to job creation and allowing politicians to gain domestic support in the short-term. The
ruling in this case has closed the imbalance between domestic producers and consumers.
Governments implement domestic content rules to support producers in their own countries. Placing restrictions on imported solar
panels and modules, which may be cheaper for consumers, would prevent domestic producers from going out of business because
consumers’ choices will be limited to those that are produced domestically. However, in most cases, consumers do not
discriminate between domestic or imported products as long as they are cheaper . In this sense, the
domestic content rules had generated profit for producers at the expense of consumers. With this WTO ruling, cheaper
foreign panels will enter the market, thereby driving down the cost for consumers. Combating climate
change The success of this program has made the country’s solar industry to quickly become one of the fastest growing solar
industries in the world and led India to make the National Solar Mission a core pillar for meeting its climate obligations to COP 21.
In fact, during times of weak global economy with high unemployment rate, there is fear that governments may continue to utilize
protectionist policies. Nevertheless, in the long-term, such protectionist trade policies are not effective in achieving green growth
because they do not drive down cost or foster innovation in clean energy technologies. From an economic perspective then, the
ruling will serve as a catalyst for innovation in clean energy technologies. Such innovation is crucial for
tackling climate change and achieving sustainable growth. Competition plays a major part in innovation. With
domestic producers becoming forced to compete against foreign producers after this ruling,
there may be more room for both foreign and domestic companies to innovate and produce
better technologies. Although many environmentalists have criticized the WTO ruling by
arguing that it was a setback in tackling climate change, the impact on India’s ability to
meet its climate targets may not be as serious as perceived. While India will now have to allow
for imported solar panels instead of relying solely on domestic ones to meet its targets, it does not necessarily mean that the nation
would no longer be able to fulfill these climate obligations from solar power generation. India could still generate its
electricity from solar power. The panels that are utilized in the plants would just not come from
those supplied by domestic solar producers alone. If cheaper imported panels became available,
consumers would still continue to use solar power for electricity generation.
AT: WTO HURTS ENVIRONMENT
Doesn’t hurt environmental agreements
Trebilcock 05
Michael J. Trebilcock is Professor of Law and Director of the Law and Economics Program at the
University of Toronto, January 20, 2005, “CRITIQUING THE CRITICS OF ECONOMIC
GLOBALIZATION” http://iilj.org/courses/documents/HC2005.Trebilcock.EconGlobal.pdf,
TMP)
Claim 3: Trade liberalization trumps environmental, health and safety concerns There are two strands to the argument that trade liberalization adversely impacts environmental,
health and safety concerns. According to the first, growth in international trade generally is harmful to the environment. The second strand asserts that, under the WTO dispute
settlement system, trade liberalization takes precedence over environmental, health and safety concerns. LeGrain37 argues that the impact of trade liberalization on the
environment depends on the balance of five factors. First, comparative advantage will lead to some countries attracting more environmentally damaging industries than others.
Second, environmentally friendly technology will become more widely available. Third, economic growth resulting from trade
will lead to increased environmental strain unless production methods change. Fourth, demand for a cleaner environment will increase
when people become wealthier. Fifth, countries may or may not choose to lower environmental standards to attract foreign investment. Krueger and
Grossman38 find that while growth is initially harmful to the environment, this effect generally begins to reverse
itself as countries get richer (the so-called Kuznets curve). Furthermore, evidence suggests that trade liberalization can pay
for the damage it causes, because the gains from trade far exceed the cost of paying for or redressing
resultant environmental damage.39 Evidence suggests that fears of an environmental “race to the
bottom”, whereby environmental standards decline to attract investment, are generally unfounded. Wheeler40 examined
pollution levels in the United States and China, Brazil and Mexico, the three developing countries
receiving the most foreign direct investment during the 1990s, and found that in each case particulate pollution is
declining. He then draws on empirical evidence to show why the “race to the bottom” has not
materialized. Specifically, studies show that pollution control costs are often not high, regardless of a
county’s income, and consequently do not provide firms with a strong incentive to relocate due to
environmental factors. Also, where there is not strong regulation, local communities use other
mechanisms, such as negotiation or forms of protest , to ensure that factories meet environmental
standards or to extract compensation for environmental degradation. Additional pressure may be brought by
environmentally conscious consumers or financial institutions who want to avoid possible
liability. Evidence also indicates that investors’ reactions to environmental news impact stock value. Consequently, there is a powerful incentive
for multinational companies to abide by OECD environmental standards globally. Finally,
environmental regulation improves as a country’s income increases. Wheeler qualifies his criticism of the “race to the
bottom” theory with three points: severe short-term pollution in some areas is still possible, information asymmetries may prevent effective environmental controls, and it is likely
that average pollution intensity (emissions/output) will initially increase as the industrial production in developing countries rises relative to that in developed countries. Wheeler
argues that trade sanctions are not the most effective way to avoid or mitigate the impact of these pitfalls because sanctions impact companies that are environmentally friendly
as well as those that are not, they put jobs at risk, and many developing countries are incapable of meeting high environmental standards.
CHAPTER 2: CHINA’S PARTICIPATION IN THE INTERNATIONAL TRADE REGIME Since its accession to WTO Beijing has
gained tremendous economic achievements, which won general endorsement across the world and evoked
particular interest among scholars. China’s image is largely associated with its successful economic growth, whereas its
development model is principally viewed as one of the major sources of China’s soft power. The sphere of trade is of particular
significance for China as it ensures its further economic development; therefore obligations in this field
represent important building block of China’s image. What we observe today in relations to Beijing’s
participation in the international trade regime is also China’s increased participation in WTO legal system ; this
includes Beijing’s involvement into settlement of both disputes lodged against China and
complaints initiated by Beijing. Intensified engagement with the dispute settlement system of the
WTO regime can be regarded as a driving force for boosting China’s image as an active and
law abiding participant of international trade. This chapter argues that the correlation between international
law and soft power is revealed through China’s accession and compliance with international rules
and shifting of its image as a responsible trade partner that actively resorts to international legal norms. For this, I identify
obligations that China has undertaken in the field of global trade, the level of China’s compliance therewith, and assess China’s image in relation to its
trade obligations within the WTO. 2.1 China’s Accession to WTO Obligations International trade obligations undertaken by China are directly linked to
its accession to the World Trade Organization. Beijing approved more than 3,000 rules and regulations, including new laws on protecting intellectual
property rights.59 In particular, they concerned reduction of tariffs, elimination of non-tariff barriers that denied national treatment and market access
for goods and services imported from other WTO members.60 Through undertaking new obligations China has shown its
respect toward international law and its willingness to become more engaged in the international legal
system. It is equally important to note that China naturally pursued its own economic interests when acceding to the WTO. Its achievements after the
accession period are very illustrative in this regard: during the last ten years its GDP has grown at an average of 9 percent per year and it moved from
being the fourth-largest trading nation to the second one, in both exports and imports. 61 Beijing has become one of the hottest
destinations for foreign direct investment, as well as a major creditor nation.62 In this respect, China’s gains from its accession to the WTO
compensate for the related challenges and risks it had to face.
The Domestic Dimension: Relegitimization of the Regime As the last major surviving communist state following the collapse of
the Soviet Union, the Beijing regime constantly faces even greater pressure to relegitimate itself . The CCP’s
original legitimacy was founded on its contribution in helping a war-torn and poverty-trodden China stand on its feet in the 1950s. However,
economic stagnation in the 1960s and 1970s caused by the party’s political and economic policy
mistakes, especially the Cultural Revolution, seriously eroded its initial base of legitimacy. Its subsequent embrace of
capitalism and de facto relinquishment of Marxism after the reform era further shook its political foundation and jeopardized its ruling position.
International sanctions imposed in the wake of the 1989 Tiananmen suppression made Beijing look like a
pariah regime that was abhorred not only by its own people but also by the international
community. Beijing successfully broke its isolation in the immediate years after Tiananmen by taking advantage
of the international situation at that time, particularly the US-led repulsion of Iraq’s invasion of Kuwait. It also achieved striking
success on the home front by developing the economy, raising the living standards of its people, and improving its governance (Bergsten et al. 2009).
Nevertheless, China’s further opening up allowed its people more opportunities to interact with
the outside world, which raised their expectation of governmental performance. Beijing’s
performance on the world stage, such as relations with other countries and status in the world
community, became new indicators for Chinese people to judge the legitimacy of their
government. Thus, China’s rapid integration into the world made it important for Chinese leaders to
succeed on the international front in order to succeed on the home front. In the new era, Beijing continuously
needs to show its people, including the inhabitants of Hong Kong, Macao, and Taiwan, that rather than being an
international outcast, the country that it rules is a strong and a respected member of international
society. The continuous expansion of China’s hard power can prove that the country is becoming increasingly strong. However, real respect
and admiration have to be earned through the cultivation of a positive image and the buildup of soft
power.