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BILATERAL AND REGIONAL TRADE
AGREEMENTS
The history of the world trading system and international trade agreements is
characterised by shifts between bilateralism, regionalism and multilateralism.
Bilateralism has recently returned, having gained momentum following the
failed WTO negotiations at the 1999 Seattle Ministerial Conference. The result
is that today’s international trade rules are now a complex web of instruments
and agreements. This volume contains case studies of selected bilateral and
regional free trade agreements (FTAs), covering a wide range of countries,
regions and key issues such as intellectual property and agriculture. Authored
by leading scholars, practitioners and governmental officials, each case study
provides a comprehensive review of the negotiating history and result of the
selected agreement. Each study can serve as an in-depth examination of a
particular FTA, and the group of case studies can be used to compare and
contrast the coverage of different FTAs or to examine the FTAs signed by a
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
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ª Cambridge University Press 2008
This publication is in copyright. Subject to statutory exceptionand to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place withoutthe written permission of Cambridge University Press.
First published 2008
Printed in the United Kingdom at the University Press, Cambridge
A catalogue record for this Publication is available from the British Library
Library of Congress Cataloguing in Publication data
Lester, Simon.
Bilateral and regional trade agreements : case studies /
Simon Lester, Bryan Mercurio.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-521-87828-9 (hbk.)
1. Commercial treaties. 2. Free trade. I. Mercurio, Bryan. II. Title.
HF1721.L47 2008
3820.9–dc22 2008012212
ISBN 978-0-521-87828-9 hardback
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websites is, or will remain, accurate or appropriate.
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Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Bradly J. Condon is Professor of International Trade Law at the Instituto Tecnologico
Autonomo de Mexico (ITAM) and is Senior Fellow, Tim Fischer Centre for GlobalTrade and Finance, School of Law, Bond University, Australia. Dr Condon is author or
co-author of five books and numerous academic articles on international trade law andeconomic integration. In 2006–2007, he held the position of visiting professor at thePermanent Mission of Mexico to the WTO in Geneva. He is listed inWho’s Who in the
World.
Peter Draper is Research Fellow and Head of the ‘Development Through Trade’programme at the South African Institute of International Affairs. His areas of
expertise are trade and investment policy and trade negotiations, with particularreference to the World Trade Organization, the Southern African region and South
Africa’s bilateral ties with key trading partners.He is a member of ‘Business Unity’, South Africa’s trade committee; lectures on
international business part time at Wits Business School; and is a Research Associateof the Department of Political Science at the University of Pretoria. He is a board
member and non-resident Senior Fellow of the Brussels-based European Centre forInternational Political Economy; a member of the IMD-Lausanne’s Evian groupincluding its ‘Brains Trust’; and a board member-designate of the Botswana
Institute for Development Policy Analysis.
Jason Kearns currently serves as Trade Counsel to the Committee on Ways andMeans in the US House of Representatives. In that position, he advises Members of
Congress on legislation concerning international trade and on oversight issuesinvolving the Office of the US Trade Representative and other agencies involved in
international trade policy and regulation. Before beginning his current position inOctober 2006, he served for three years in the Office of the General Counsel to the
US Trade Representative. In that position he advised negotiators on issues that aroseduring bilateral and multilateral trade negotiations and represented the United
States in several disputes in the World Trade Organization. From 2000 to 2003,Dr Kearns worked in the international trade group of Wilmer, Cutler & Pickering(now known as WilmerHale). Dr Kearns holds a Master in Public Policy from the
Kennedy School of Government at Harvard University, a Juris Doctor from theUniversity of Pennsylvania, and a Bachelor of Arts from the University of Denver.
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Nkululeko Khumalo is Senior Researcher on Trade Policy at the South African
Institute of International Affairs. He holds an LLM (cum laude) specializing ininternational trade and investment from the University of the Western Cape, South
Africa, in collaboration with Amsterdam Law School in the Netherlands. Hisexpertise is in trade facilitation, international trade and investment laws, trade in
services and trade negotiations.Since he joined SAIIA in September 2004, Mr Khumalo has managed a number of
research projects including: Trade Facilitation in the WTO and Southern Africa, andRegional Integration and Liberalization of Trade in Services in Southern Africa. Heis also involved in coordinating projects on the US–SACU FTA negotiations and
International Trade, Food Security, and GMO Regulations in Africa.
Bryan Mercurio is a Professor of Law at the Chinese University of Hong Kong and
Fellow of the Tim Fischer Centre for Global Trade & Finance. He previously held afaculty position at the University of New South Wales, where he was also the
Director of the International Trade and Development Project at the Gilbert þ TobinCentre of Public Law. Prior to entering academia, Professor Mercurio worked in
both the public and private sector and has practised international commercial lawand international trade law in the United States and Australia. More recently, he hasadvised Members of both the Australian and New Zealand Parliaments on
international trade law matters and has been a consultant on, among other issues,the Australia–United States Free Trade Agreement. Professor Mercurio has held
visiting positions at the Center for International and Comparative Law at St LouisUniversity School of Law, the George Washington University Law School, the
Institute for International Economic Law at the Georgetown University Law Centerand at the National University of Singapore. He is also on the Founding Committee
of the Society of International Economic Law.
Andrew Mitchell is a Senior Lecturer at Melbourne Law School. He graduated fromthe University of Melbourne with First Class Honours in both his Bachelor of Laws
and Bachelor of Commerce degrees. He subsequently obtained a Graduate Diplomain International Law from the University of Melbourne, a Master of Laws from
Harvard Law School, and a PhD from the University of Cambridge. His dissertationis being published by Cambridge University Press in 2008 as Legal Principles in WTO
Disputes. Dr Mitchell was previously a solicitor with Allens Arthur Robinson inAustralia and worked briefly at Davis Polk & Wardwell in New York. He has also
worked in the Trade Directorate of the Organization for Economic Cooperation andDevelopment (OECD), the Intellectual Property Division of the WTO, and the Legal
Department of the International Monetary Fund. Dr Mitchell has published innumerous journals and books on areas including WTO law, international law,international humanitarian law and constitutional law. He has taught WTO law at
the University of Melbourne, the University of Western Ontario, Bond University,
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Monash University, the International Development Law Organization and theAustralian Department of Foreign Affairs and Trade.
Mauricio Salas is a partner at the law firm of BLP Abogados in San Jose, Costa Rica.He has served as Professor of International Trade at the University of Costa Rica. He
holds degrees from the University of Costa Rica (both Bachelor and JD equivalentdegrees) and from the Georgetown University Law Center (LLM). After obtaining
his LLM, Mauricio worked as an intern at the Appellate Body Secretariat ofthe World Trade Organization. He is listed in the roster of arbitrators of the
Mexico–Costa Rica free trade agreement. His work has been recognized by the Guideto the World’s Leading International Trade Lawyers and by Latin Lawyer’s LeadingInternational Trade Lawyers. Mauricio Salas is also regularly included in Chambers
Global and the International Financial Law Review.
Luz Sosa is an international legal trade adviser at the Agricultural Office in theMission of Chile to the European Union in Brussels, Belgium. Previously, she served
as a legal adviser in the Legal Affairs Division of the General Directorate ofInternational Economic Affairs of the Ministry of Foreign Affairs of Chile. While
there, she was directly involved in negotiating and implementing trade agreementson behalf of Chile, particularly in the area of dispute settlement. She was alsoinvolved in WTO dispute settlement proceedings as a member of the Chilean
delegation. Prior to her work as a trade negotiator, Mrs Sosa was an internationaltrade adviser in the Geneva office of Sidley Austin Brown & Wood LLP, where she
focused her practice in the area of international dispute resolution. Luz Sosa is aChilean lawyer and holds a Masters degree in international law and economics from
the World Trade Institute, Berne, Switzerland.
Tania Voon is a Senior Lecturer at Melbourne Law School and a former Legal
Officer of the Appellate Body Secretariat of the WTO. She completed her PhD at theUniversity of Cambridge and her Master of Laws at Harvard Law School. Sherecently authored Cultural Products and the World Trade Organization (Cambridge:
Cambridge University Press, 2007) and she has published numerous articles inleading journals on WTO law and public international law more generally. Dr Voon
teaches international economic law, including advanced courses on WTO disputesettlement as well as dumping, subsidies and safeguards in the WTO. She has
practised law with Mallesons Stephen Jacques and the Australian GovernmentSolicitor and has also worked for the United Nations in New York and the
Organization for Economic Cooperation and Development (OECD) in Paris.
Jiangyu Wang is an Associate Professor at the School of Law, the Chinese Universityof Hong Kong. He specializes in Chinese law, international economic law and
international commercial law. Before coming to Hong Kong, Dr Wang taught at theFaculty of Law of the National University of Singapore for three years where he was
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
an Assistant Professor of Law. He practised law in the Legal Department of the Bankof China and Chinese and American law firms. He served as a member of the
Chinese delegation at the annual conference of the United Nations Commission onInternational Trade Law Conference in 1999. Dr Wang has published extensively in
Chinese and international journals and newspapers on a variety of law and politicsrelated topics. He is a member of the Chinese Bar Association and the New York Bar
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
We would like to thank all the contributors to this volume as well as all of those whoreviewed and commented on any of the chapters. We would also like to thank the
governments from which a number of our authors are drawn for allowing them tocontribute to this volume. We are also deeply indebted to Ms Nikki Chong for
voluntarily providing countless hours of excellent research and editorial assistanceto the authors and editors.
Bryan would also like to extend his thanks to his wife, Kate for her understandingand support and to young Kieran for his timely and necessary distractions.
Simon would also like to thank his wife, Kara Leitner for her understanding and
assistance throughout the project.All information given in the case studies was correct at the time of submission by
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
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Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
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Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information
Cambridge University Press978-0-521-87828-9 - Bilateral and Regional Trade Agreements: Case StudiesEdited by Simon Lester and Bryan MercurioFrontmatterMore information