Transnational mercantilism and the emergent global trading order

Abstract

It is often argued that the problems currently facing the World Trade Organization stem from an important shift in the trade agenda from tariff reduction to the harmonisation of domestic regulations considered as non tariff barriers. From this perspective, the lack of harmonisation of domestic regulations severely impairs the capacity of the WTO to fulfil its mission. This article argues, in contrast, that the underlying problems facing the contemporary trade agenda are different, and are caused by a lack of differentiation in the regulatory framework of the WTO. To substantiate this claim, a conception of transnational mercantilism is derived from recent scholarly revisions of classical mercantilism. This clarifies a continuity between the external dimension and the comprehensive pattern of social organisation involved in the political economy of international trade. This framework is used to appraise four structures upon which trade policy is predicated: the implementation of market mechanisms, the embeddedness of trade in state-society relations, the link between trade and the natural environment, and special and differential treatment for developing countries.

Rice, politics and power: the political economy of food insecurity in East Asia

“…A historically contextualised understanding of mercantilism -past and present -has much to offer agri-food scholars in seeking to comprehend the socio-political and economic contours of the contemporary global food system. The mercantilist tradition in political economy highlights the dynamic interplay between socio-political and economic spheres, and the interconnections between domestic and international realms and the political economy of trade policy (Graz 2004). The contemporary revival of the mercantilist tradition in political economy can be traced to the work of eminent scholars such as Joan Robinson (1978) on 'the new mercantilism'.…”

Intellectual Property Monopolies: Towards a New Mercantilism

“…The current difficulties encountered in global trade negotiation within the WTO also led scholars to propose a comparison of the emerging trading order with mercantilism, and defines it as transnational mercantilism (Graz, 2004).…”

Rice, politics and power: the political economy of food insecurity in East Asia

“…The mercantilist tradition in political economy highlights the dynamic interplay between socio-political and economic spheres, and the interconnections between domestic and international realms and the political economy of trade policy (Graz 2004). The contemporary revival of the mercantilist tradition in political economy can be traced to the work of eminent scholars such as Joan Robinson (1978) on 'the new mercantilism'.…”

“…This apparent paradox can be historically contextualised through a nuanced understanding of how states -both in the Global North and in the Global South -have long intervened in domestic agri-food markets to achieve socio-political and economic objectives (Chang 2008;Potter and Tilzey 2005). Returning to the arguments outlined in Chapter 3, scholars have asserted that a form of mercantilism or agri-food protectionism is evident in the European Union's CAP and the Farm Bill in the United States -legislation that contains significant subsidies to support the corporate agri-food sector (Chang 2008;Graz 2004;Potter and Tilzey 2005). For this reason, the agricultural liberalisation policies advocated by the WTO have long been contested by some states in the Global South as a form of 'organised hypocrisy' (Rosset 2006).…”

“…The state-led rice pledging subsidy scheme highlights the dynamic interplay between socio-political and economic spheres in the agri-food system, and the interconnections between domestic and international realms and the political economy of agricultural trade policy (Graz 2004). However, to what extent can the Pheu Thai Government's rice pledging subsidy scheme be classified as an example of neomercantilism in the rice and agri-food sector?…”