Suchergebnisse

Recently, multilateralism has become a major buzz word in Asian international relations. Nations in the region are hopeful that multilateral negotiations will serve as a basis for managing the region's problems. The argument here is that hopes that the United States will commit to such arrangements are misplaced. Given both America's history and current U.S. national interests, the United States is likely to make only a partial commitment to multilateralism. (Asian Perspect/GIGA)

The World Trade Organization (WTO) lacks the power to directly enforce agreements. It is therefore important to understand what role the WTO can play to facilitate international cooperation, and whether a multilateral institution can offer distinct advantages over a web of bilateral agreements. This paper examines two potential benefits of a multilateral trade institution: first, verifying violations of the agreements and informing third parties, thus facilitating multilateral reputation mechanisms; second, promoting multilateral trade negotiations rather than a web of bilateral negotiations. The model suggests that a multilateral approach is particularly important when there are strong imbalances in bilateral trading relationships. (JEL F13)