Preferential Trade Agreement Issues

Preferential Trade Agreement Issues

I test the argument using an initial set of data on environmental standards and labour rights in U.S. preferential trade agreements and bilateral sectoral data on NTAs. Since the U.S. is the only country where FDI data is publicly available at the industry and Dyad level, I focus on the U.S. context. However, many industrialized countries accept NTIs in their trade agreements. The argument below is therefore generalized to other trading powers that have an interest in strong environmental and labour standards in their partner countries (for example. B Australia, Canada, the European Union, New Zealand and EFTA countries). I opt for PTAs because investment and standard link are the most common in trade agreements. Other types of contracts that regulate investment flows, such as bilateral investment contracts (ILOs), generally exclude NTIs.

Only 5% of US ILOs contain labour and/or environmental standards. Footnote 3 In breaking down FDI data, the study contributes to the inconclusive discussion of whether standards increase or reduce FDI (Konisky 2008; Palmer et al. 1995; Porter 1991; Potoski 2001; Reinhardt 1998; Rivera 2002; Rivera and Oh 2013; Woods 2006). While the fine-grained FDI measure makes it possible to argue more precisely, the comparison between two different standards promises a generalization not. This is the first study that compares the impact of environmental and labour standards on investor decisions and helps determine whether the literature on workers` rights and foreign direct investment can be put in the same bag as scientific work on environmental standards and investments. So far, there have been only separate discussions. In addition, I add to the trade and… debate. Recent studies have examined the provisions and effects of the ATP that go beyond trade (Brooks 2005; Hafner-Burton 2009; Mansfield and Pevehouse 2000; Rickard and Kono 2014; Spilker and Behmelt 2012). I focus on environmental and working standards in ATPs and study their impact on investments.

The document answers the question of whether PTA NTIs are mere decorations or have a real impact on the economy. Beyond the PTA perspective, the data from ID should contribute to a better understanding of the impact of standards on investment. Sectoral data on emissions and factor equipment provide a more accurate theory. Baccini et al. (2017) show that the breakdown is important for the declaration of trade and investment of multinationals. The authors argue that the distribution of the benefits of trade liberalization is uneven in business and depends on the activities of businesses. The broken down ANT data should also improve our understanding of investor reactions to NTIs. Second, I explain why investors tend to deal with the standards in these contracts. Flanagan, R.

J., Gould, W.B (2003). International labour standards: globalization, trade and public order. Stanford law and politics. Stanford: Stanford University Press. developed countries` promotion of more complex integration models, explaining why the agenda of preferential agreements is moving towards a more advanced integration policy. Preferred trade agreements increasingly include environmental and labour standards. Some scientists have already studied the impact of labour rights in ATPs on compliance with national rules (Hafner-Burton 2009; Kim 2012; Postnikov and Bastiaenes 2014; Spilker and Behmelt 2012). However, it is not yet clear whether these standards also influence business.

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