Trade interfaces with many other areas of governance, including macroeconomic policy, intellectual property, security of the environment, health and employment. The main purpose of the article is to illustrate the latest models of the political economy of contemporary foreign trade policy. New developments in international business, the effect of rising global supply chains on the political economy of trade and the motivation of countries to cooperate in trade policies and the growing importance of bilateral agreements in foreign trade policy are the focus of the discussion and the theoretical contribution of the research programme undertaken. It should be stressed that a few multinational corporations are responsible for a large share of world trade. On the one side, in order to lower trade costs, these companies should encourage regulatory harmonisation through various Preferential Trade Agreements (PTAs). On the other hand, in order to discourage new entrants from entering markets, they may also oppose harmonisation and promote such non-tariff measures. It must be emphasised that WTO members must, in particular with developing countries, establish new ways of finding common ground through financial, economic and trade assistance, even because of the value of agriculture, in order to negotiate mutual benefits from international trade and, first of all, from new foreign trade policy models. This may partially explain the persistence of regulatory divergence, and indicates that regulatory convergence may be a more dynamic political economy than is often assumed.
Author (s) Details
Professor Zdzisław W. Puślecki
Adam Mickiewicz University, Poznań, Poland.