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In: Discussion paper series 7219
In: International trade and regional economics
In: Discussion paper series 6172
In: International trade
In: Discussion paper series 6502
In: International trade
In: The European casebook series on management
In: Études internationales, Band 14, Heft 4, S. 846
ISSN: 1703-7891
In: Business and politics: B&P, Band 4, Heft 1, S. 5-39
ISSN: 1469-3569
The most intractable and protracted transatlantic trade conflict of the last decade was over bananas, which grow neither on the European nor on the North American continent. Our explanation of the conflict emphasizes the determining role of the domestic politics of the EU and the United States. It was driven not only by the extreme divergence of preferences of Brussels' and Washington's domestic constituencies, rooted in the competitive position of competing banana industries, but also, and critically, by the institutional configuration of (agricultural) trade policymaking on either side of the Atlantic. The EU agricultural trade policy process is characterized by a division of labor that favors agricultural over wider trading interests, sectoral segmentation, and sector-specific issue-linkage. The U.S. trade policy process is characterized by the Congress's growing reassertion of its trade policy prerogatives, the growing institutionalization of firms' access to the trade policy bureaucracy, and the growing volume and role of corporate campaign donations. The combined effect of these different policy process traits has been to facilitate the capture of banana trade policy by highly organized, particularistic, and predominantly trading interests. Although neither the WTO nor the transatlantic trading relationship ultimately "slipped" over bananas, the conflict provides scant reason for optimism concerning the future of this relationship or indeed of the multilateral international trading system, at least in as far as the latter depends on good EU-U.S. relations.
Digitised version produced by the EUI Library and made available online in 2020.
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In: Journal of international economics, Band 46, Heft 1, S. 87-103
ISSN: 0022-1996
In: Journal of development economics, Band 50, Heft 1, S. 211-212
ISSN: 0304-3878
In: Journal of development economics, Band 49, Heft 2, S. 289-306
ISSN: 0304-3878