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The Politics of Forum-shopping in International Trade: The Case of Japan (Saadia Pekkanen, Mireya Solis, and Saori Katada)

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Abstract:

The Japanese government today is actively choosing to pursue its economic diplomacy through bilateral venues, multilateral frameworks, and even regional settings. For Japan specialists, these high-profile forum choices to pursue trade liberalization and dispute resolution across forums are unprecedented and contrary to all expectations. What combination of factors has led Japan to this juncture in its economic diplomacy? What elements specifically determine the Japanese government’s choice to pursue its economic diplomacy across forums? By invoking the model that we call, Scope-Flexibility tradeoff, the paper argues that trade liberalization and adjudication forums can be effectively characterized by two dimensions: scope and flexibility. Those two dimensions are not only applicable to all the negotiation forums from the WTO to the smallest of bilateral FTAs, but also have critical implications on states’ strategic, economic and political calculations. This study illustrates that, on the one hand, a multilateral forum encompasses greater scope than any other alternative forums both in terms of large gains from trade and reduced transaction costs through standardization of rules. Meanwhile, this forum tends to present disadvantages in the level of flexibility. On the other hand, bilateral forums, which fall significantly short in the scope dimension with their small market gains, and idiosyncratic rules, score high on flexibility as negotiation governments can exclude sectors, select issues, and above of all, choose suitable partners. The case of Japan illustrates that its government engages forum-shopping to maximize their political leverage both domestically and abroad.

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trade (220), forum (198), japan (182), region (131), multilater (106), bilater (103), state (71), japanes (70), econom (68), negoti (66), polit (65), rule (63), intern (61), liber (60), flexibl (55), polici (54), govern (45), scope (44), wto (43), one (41), agreement (39),
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Pekkanen, Saadia., Solis, Mireya. and Katada, Saori N.. "The Politics of Forum-shopping in International Trade: The Case of Japan (Saadia Pekkanen, Mireya Solis, and Saori Katada)" Paper presented at the annual meeting of the American Political Science Association, Marriott Wardman Park, Omni Shoreham, Washington Hilton, Washington, DC, Sep 01, 2005 <Not Available>. 2009-05-25 <http://www.allacademic.com/meta/p40576_index.html>

APA Citation:

Pekkanen, S. M., Solis, M. and Katada, S. , 2005-09-01 "The Politics of Forum-shopping in International Trade: The Case of Japan (Saadia Pekkanen, Mireya Solis, and Saori Katada)" Paper presented at the annual meeting of the American Political Science Association, Marriott Wardman Park, Omni Shoreham, Washington Hilton, Washington, DC Online <APPLICATION/PDF>. 2009-05-25 from http://www.allacademic.com/meta/p40576_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: The Japanese government today is actively choosing to pursue its economic diplomacy through bilateral venues, multilateral frameworks, and even regional settings. For Japan specialists, these high-profile forum choices to pursue trade liberalization and dispute resolution across forums are unprecedented and contrary to all expectations. What combination of factors has led Japan to this juncture in its economic diplomacy? What elements specifically determine the Japanese government’s choice to pursue its economic diplomacy across forums? By invoking the model that we call, Scope-Flexibility tradeoff, the paper argues that trade liberalization and adjudication forums can be effectively characterized by two dimensions: scope and flexibility. Those two dimensions are not only applicable to all the negotiation forums from the WTO to the smallest of bilateral FTAs, but also have critical implications on states’ strategic, economic and political calculations. This study illustrates that, on the one hand, a multilateral forum encompasses greater scope than any other alternative forums both in terms of large gains from trade and reduced transaction costs through standardization of rules. Meanwhile, this forum tends to present disadvantages in the level of flexibility. On the other hand, bilateral forums, which fall significantly short in the scope dimension with their small market gains, and idiosyncratic rules, score high on flexibility as negotiation governments can exclude sectors, select issues, and above of all, choose suitable partners. The case of Japan illustrates that its government engages forum-shopping to maximize their political leverage both domestically and abroad.

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Document Type: application/pdf
Page count: 51
Word count: 14856
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The Politics of Forum-shopping in International Trade: The Case of Japan Saadia M. Pekkanen University of Washington Mireya Solis American University Saori N. Katada University of Southern California Paper presented at the Annual Meeting of the American Political Science Association (APSA) 1-4 September 2005. We thank the Center for International Studies at the University of Southern California for its generous funding to help launch this project and especially Peter Rosendorff John Odell and Apichai Shipper for their helpful comments
Free Trade Area.” Policy Insights no. 1. OECD -----------------. “Free Trade Agreements: A Catalyst for Japan’s Economic Revitalization.” (forthcoming). Yamakage Susumu (2003) “Nihon ASEAN kankei no shinka to hen-you ” in Susumu Yamakage (ed.) Higashi Ajia Chiiki Shugi to Nihon Gaikou JIIA Kenkyu No. 8 Kokusai monndai kenkyu jo. Yasutomo Dennis T. 1995. The New Multilateralism in Japan’s Foreign Policy. New York NY: St Martins Press. Yasutomo Dennis T. Yasutomo. 1993. The Politicization of Japan’s ‘Post-Cold War’ Multilateral Diplomacy.


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