Governing Global Trade: International Institutions in Conflict and Convergence by Theodore H. Cohn

Author:Theodore H. Cohn [Cohn, Theodore H.]
Language: eng
Format: epub
Tags: International Relations, Political Science, General
ISBN: 9781351932448
Google: 9AskDwAAQBAJ
Goodreads: 35196666
Publisher: Routledge
Published: 2003-02-01T00:00:00+00:00

6

From Punta del Este to the Brussels Ministerial: 1986 to 1990

The GATT Uruguay Round was originally supposed to be completed at the Brussels ministerial in December 1990, but persistent delays and divisions on key issues such as agriculture prevented the conclusion of the round as planned. This chapter examines the role of the G7, the Quad, and the OECD from the 1986 Punta del Este ministerial launching the Uruguay Round to the 1990 Brussels ministerial. The most significant change in the global trade regime pyramid during the first half of the Uruguay Round was some blurring of divisions between the North and the South. Although countries within the South (and within the North) have always had divergent interests on various issues, these differences became far more evident in the Uruguay Round as developing countries joined with developed countries in a number of coalition groups. For example, the Cairns Group of so-called “fair trading nations” in agriculture is discussed in this chapter and in Chapter 7. The Cairns Group is a coalition of middle and small power agricultural exporters, that some observers have described as a “third force” along with the United States and the EC in the GATT Uruguay Round agricultural negotiations.1

One should not overestimate the importance of the new alliances between developed and developing countries, because the G7, the Quad, and the OECD representing the North continued to remain near the top of the global trade regime pyramid and the United States and the EC continued to be the most important traders. Developing countries also were reluctant to identify themselves too closely with coalitions with developed countries, because the South continued to seek some special and differential treatment. Nevertheless, North-South coalition groups at the Uruguay Round marked the beginning of the South’s greater involvement in GATT multilateral trade negotiations. Although a degree of consensus in the G7 and the Quad would continue to be necessary, it would no longer be sufficient for trade agreements to be concluded.2 This change was beginning to become apparent as dissatisfied developing countries effectively slowed the Uruguay Round negotiations at ministeriais in Montreal and Brussels (see discussion below).

Although the United States and the EC remained near the top of the global trade regime pyramid, they both showed a lack of leadership in the early stages of the Uruguay Round, and there were major differences between them – particularly on agriculture. The lack of effective U.S. and EC leadership during this period was a major factor contributing to the prolongation of the Uruguay Round. U.S. initiative and tenacity was primarily responsible for the launching of the Uruguay Round, and for the round’s broad scope and forward-looking agenda. Nevertheless, in the early stages of the round the United States demonstrated less willingness and ability to lead in two major respects. First, the United States was less committed to nondiscrimination in trade, as Presidents Ronald Reagan and George Bush showed an interest in concluding regional free trade agreements in the Western hemisphere. Second, the United States resorted

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