Chapter

Cooperating to Trade, Trading to Cooperate

A. Estevadeordal and K. Suominen

in The Sovereign Remedy?

Published in print April 2009 | ISBN: 9780199550159
Published online May 2009 | e-ISBN: 9780191720253 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199550159.003.0003
Cooperating to Trade, Trading to Cooperate

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This chapter takes a step further back to chart the backdrop to trade agreement waves — the evolution of international cooperation. A vast body of political science literature has shown that cooperation in one issue area can encourage states to expand their cooperation into other areas. PTAs can make a particularly potent focal point for cooperation by spurring positive externalities (such as greater trust and contacts forged during the negotiation process) or negative ones (such as increased traffic congestion) that induce economic actors to demand further cooperation (such as to facilitate trade and create new transport corridors). The historical narrative shows that trade and other types of cooperation agreements have ebbed and flowed together over the past 130 years: surges of PTAs are closely related to surges of cooperation agreements. It also finds that PTAs may have spillover effects: countries that cooperate most extensively with each other in the area of trade tend to be each other's most favored partners also in other areas of cooperation.

Keywords: referential trading arrangements; international cooperation; neoliberalism; realism; PTAs; negotiation process

Chapter.  8293 words.  Illustrated.

Subjects: International Economics

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