Master of Arts / Department of Economics / Peri da Silva / The literature concerning the economics of regional trade agreements (RTAs) has evolved from a theoretical perspective to an empirically based approach over the past decade. Specifically, this report examines the various empirical studies on the economic determinants of RTAs and the likelihood of RTAs between country-pairs. Scott L. Baier and Jeffrey H. Bergstrand (2004) or BB (2004) provide us the first empirical work on the economic determinants of RTAs. Their model predicts fairly accurately, 85% of the 286 RTAs in 1996 among 1431 country-pairs, and 97% of the remaining 1145 pairs with no RTAs based on economic features. In this report, we begin with an introduction to RTAs, and then we will explore the contribution of BB (2004), as well as other economists’ empirical findings on the economics of RTAs, using empirical strategies similar to BB’s (2004) study.

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This paper discusses the role played by Dispute Resolution Mechanisms in the European Union and the North American Free Trade Agreement (NAFTA), and the way in which they potentially contribute to the constitutionalization of such Regional Trade Agreements. The European Court of Justice has played a major role in the constitutionalization of the European Union due to the preliminary reference procedure, as well as the principles of direct effect and supremacy. The lack of availability to NAFTA Dispute Resolution Mechanisms of the principles which are so influential with the European Court of Justice mean that NAFTA’s Dispute Resolution Mechanisms are unable to drive constitutionalization in a manner similar to the ECJ. Chapter 11 of NAFTA however has the potential to act as a agent of constitutionalization within the scope of international investment law, but not of NAFTA itself.

This paper discusses the role played by Dispute Resolution Mechanisms in the European Union and the North American Free Trade Agreement (NAFTA), and the way in which they potentially contribute to the constitutionalization of such Regional Trade Agreements. The European Court of Justice has played a major role in the constitutionalization of the European Union due to the preliminary reference procedure, as well as the principles of direct effect and supremacy. The lack of availability to NAFTA Dispute Resolution Mechanisms of the principles which are so influential with the European Court of Justice mean that NAFTA’s Dispute Resolution Mechanisms are unable to drive constitutionalization in a manner similar to the ECJ. Chapter 11 of NAFTA however has the potential to act as a agent of constitutionalization within the scope of international investment law, but not of NAFTA itself.

Trade remedy measures (TRMs) in international economic law refer to antidumping measures, countervailing duties and safeguard measures. They are designed to respond to unfair trade practices or to compensate the negative impact on domestic industries resulting from tariff concessions made under the trade liberalization arrangements. Due to the importance of these instruments, the rules on TRMs are strengthened in the WTO legal framework and established on non-discriminatory basis towards all WTO Members. However, with the proliferation of regional trade agreements (RTA) in recent decades, it was noticed that, most RTAs adopted innovative approaches on TRMs among their regional partners. Such incoherence has brought a series of trade disputes and arguments concerning the conflicts between the WTO and RTA. Current central issues in this area are whether those innovative TRMs are consistent with WTO law and what is the appropriate approach to examine the legality of those measures. Against the canvas of WTO trade remedy rules, this research first investigates the diversified trade remedy approaches in RTAs and their impact on international trade. It then clarifies the ambiguous legal criteria against which TRMs in RTAs should be judged in order to be WTO-consistent. Thereafter, a methodology through which a RTA-specific TRM could be tested against the WTO’s criteria is also developed. It is argued that facilitating TRMs in RTAs must always adhere to the criteria laid down by the WTO, e.g. GATT Article XXIV. In particular, a “necessity test” should be applied when examining the legality of a special TRM in RTAs, in the case where a dispute arises between the RTA members and third countries on the issue. In order to bring the RTA-specific TRMs into compliance with WTO law, this research also looks at the WTO surveillance mechanism on RTAs. Considering a number of difficulties that have arisen in the GATT/WTO’s surveillance of RTAs in the past, the thesis addresses what positive measures can be taken in the future and whether TRMs in RTAs should be scrutinized by WTO political organs or through the dispute settlement mechanism.

Climate change has been described as a malign, wicked, and super wicked problem. I focus on key characteristics that make international collective action challenging: asymmetry, fear of free riding, scientific uncertainty, and inherent interdependencies. I argue that an institution designed to tackle such a complex problem requires a key set of features: leadership, linkage, quality information, differentiated obligations, monitoring/enforcement, transparency, and flexibility. I assess the United Nations Framework Convention on Climate Change (UNFCCC) and Kyoto Protocol to determine what aspects are missing. I then ask why the European Union (EU), with incentives to the contrary, set broad unilateral goals. I argue that the framework of political and economic integration made deep cooperation possible. Lastly, I consider whether this experience is specific to the EU and ask whether regional trade networks have a role in the global arsenal of climate change solutions.

Regional integration continues to be a source of inspiration due to the economic benefits associated with a country belonging to a regional organisation. The African continent is no exception with the Southern African Development Community (SADC) taking note of such cooperation with exceeding attention. Its predecessor, the Southern African Development Co-ordination Conference (SADCC), was formed in 1980 and one of its most important goals was to economically integrate the Southern African region in order to improve the economic situation of its Member States. The transformation of the SADCC to the SADC in 1992 led to a much stronger SADC which was complimented further by the ratification of the SADC Protocol on Trade in 2000 and most importantly by the establishment of the Regional Indicative Strategic Development Plan (RISDP) in 2001 through an Intergovernmental approach. The RISDP is seen as the most effective mechanism by the SADC to fully integrate the SADC effectively and is this study’s unit of analysis, as part of this study’s research strategy which is a case study methodology, under a qualitative research design which has been adopted for this study. However, this study notes that the RISDP is being poorly implemented by SADC Member States, as clearly stated in this study’s aim, and key examples include missing set milestones such as the formation of the SADC Customs Union in 2010. The focus on a customs union is essential as it will increase intraregional trade as this study believes that it will be the catalyst in truly economically integrating the SADC region. / Dissertation (MA)--University of Pretoria, 2019. / Political Sciences / MA / Unrestricted

Regional integration is not a new phenomenon in Africa. It can be traced back to the creation of the Southern African Customs Union (SACU) in 1917, which was the world's first customs union. Upon gaining independence, states formed the Organization of African Unity (OAU). At that time, Heads of States viewed regional integration as a protectionist measure against colonialism and as a way of forming a self-sustaining continent. However, the additional challenges facing Africa over time prompted various initiatives by Heads of States which were aimed at deepening integration on the continent. Notable actions include the signing of the Abuja Treaty, which established the African Economic Community (AEC), and the replacement of the OAU by the African Union (AU). Further, the continent experienced an increase in the number of Regional Economic Communities (RECs) and there are now fourteen RECs. Despite the steps taken to further integration, the success of such regional integration on the continent has been minimal and Africa has become even more marginalized on the global market. This lack in progression can be attributed to challenges such as inadequate resources, overlapping memberships in multiple RECs and duplicated programmes and efforts. Another challenge that is not readily recognized is the lack of attention to the role of law in economic integration. RECs have largely focused on the economic and political aspects of regional integration but have given minimal attention to the necessity of a strong legal foundation. RECs develop community law and these laws should be enforceable within Member States. However, due to the weak legal systems of RECs in Africa that do not make community law supreme, enforceability of this law has proven challenging. Comparatively, other RECs such as the European Union, have achieved deeper levels of integration and this can partly be attributed to the strong legal systems that have been developed. It is on the basis of this challenge that this study is conducted. The study aims to provide an in-depth analysis of the weaknesses of existing legal systems of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). The study further analyses the manner in which other RECs, such as the European Union and the Economic Community of West African States, have successfully integrated through law, with the aim of identifying solutions for the existing weaknesses in Southern Africa.

The following study assesses economic and political determinants of foreign direct investment by U.S. firms. Data from the Bureau of Economic Analysis at the U.S. Department of Commerce was used for total and food sector FDI for 35 countries from the years 2001-2008. Using these data in three econometric models, the paper examines the effect on FDI of regional trade blocs as well as political factors such as labor and credit market regulations, and transfers and subsidies. Finally, the thesis provides a comparison of each model on two dependent variables: food sector and total FDI. The study finds that management decision making for FDI differs for agribusiness firms compared to industry as a whole, especially with regards to the host country’s relative wages, language barriers, and membership in the Association of Southeast Asian Countries (ASEAN).

Daniel Conk 5 January 2012 Thesis Abstract This thesis is an empirical research on the impact that preferential trade agreements have on the welfare of individuals and nation-states. As the number of preferential trade agreements has been growing steadily, the on-going clash between regionalism and multilateralism will be a key topic throughout the research. Fair trade movements have been becoming more popular over the fast few years as some organizations have strived to raise consumers awareness regarding the great disparities among the profit margins of the producers or farmers in developing countries in comparison to those of the merchants and distributors in developed countries. Even though quantitative data will be used in order to portray the growing economic inequalities present in today s world, arguments will also be supported on grounds of ethics and morals relating to social justice.