INVESTIGATIVE STUDY

Investigative Study



Investigative Study

Introduction

Economic globalization and nation-states are often posited on the opposite sides of the globalization debate, where globalization either encroaches on the domain of nation-states or is resisted or mediated by them. Second, in a larger aspect of economic globalization, there is a need to find that current FTAs (Free Trade Agreement) signify a resurgence of neomercantilism, not truly complying with the alleged essence of “neoliberalism.” Unlike the doctrine of neoliberalism, or the deepening of liberalization and deregulation, states intervene in trade policy in a more proactive and legitimized manner through FTAs. States involve in a sector-by-sector decision-making process in actual negotiations and implementation of FTAs, and strongly and intentionally promote exports in particular sectors that they regard to be beneficial to their own economies while tacitly, if not readily, giving up other sectors. Under the mantra of liberalization of international trade through FTAs, states maintain their intervention in the details of international trade including what, how and when to import and export. In other words, by creating so-called “neoliberal” rules of trade, or FTAs, through a political process of power struggles with their domestic forces as well as with their partner states, states reinforce their leverage over international trade. Therefore, FTAs do not enhance the transnationalism of the world economy, but allow state intervention in trade in a way that is physically different but similar in nature. Therefore, all the issues and aspects related to Investigative Study will be discussed in detail.

Discussion

Economic globalization represented by so-called “neoliberal” economic liberalization has been accelerated in different ways in the past couple of decades. Free trade is the most prominent feature, and it has been rapidly institutionalized across the world. In the mid-1980s, preferential trade agreements, particularly regional trade agreements, began to resurge. In tandem with the ongoing multilateral trade regime of the General Agreement on Tariffs and Trade (GATT), various regional trade agreements such as the European Union (EU), the North American Free Trade Agreement (NAFTA), and the Southern Common Market (MERCOSUR) featured more than a decade of trade liberalization leading up to the 21th century. Around the establishment of the WTO in 1995, the number of free trade agreements (FTAs) began to increase rapidly and constituted a new phase of global trade (Bagwell & Robert, 1998, 1182).

Among about 186 FTAs that are currently in effect as of the mid-2012, 174 FTAs were created after the establishment of the WTO, and dozens of prospective FTAs are being negotiated or waiting for ratification around the world. What is to note is that most of the recent FTAs are bilateral FTAs as opposed to multilateralism under the WTO or regionalism based on geographical proximity, though some bilateral FTAs are between states within the same region. Bilateral FTAs include FTAs between two states, between one state and one regional bloc, and between two regional blocs, but an absolute majority of the recent bilateral FTAs are between two states with a few exceptions including FTAs with the European Union ...