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Power in international trade negotiations

Objective

For the last twenty years, countries across the globe have negotiated a large number of preferential trade agreements. In parallel, trade negotiations have taken place in the framework of the World Trade Organization. These negotiations not only deal with tariffs, but also cover investments, competition policy, labour standards and much more. With much at stake, the extent to which different countries are able to achieve their preferred outcomes in these negotiations is of broad interest. In this project, I address this topic by asking: what makes some countries have more bargaining power than others in these negotiations? In other words, what explains variation in bargaining power in trade negotiations?
My approach to these questions is ground-breaking in terms of theory, empirical research and methodology:
1.) I develop an original theoretical argument that links the globalization of production to bargaining power in trade negotiations. Concretely, I argue that the offshoring of production reduces the importance of market size in trade negotiations. The argument leads to the expectation of systematic variation in bargaining power over time, and across pairs of countries and sectors.
2.) I will collect novel and systematic data to test this argument, going far beyond the empirical evidence currently used to assess bargaining power in trade negotiations. The empirical research will bring together qualitative evidence from case studies with quantitative evidence on both the perception of power and the actual outcomes of trade negotiations.
3.) I will innovate methodologically by combining and comparing three approaches to measuring bargaining power, namely process tracing, attributed influence and preference attainment.
The project will make a key contribution not only to the literature on bargaining power in international trade negotiations, but also to research on, e.g. international development, international institutions and the political economy of trade.

Fields of science (EuroSciVoc)

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Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-COG - Consolidator Grant

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2016-COG

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Host institution

PARIS-LODRON-UNIVERSITAT SALZBURG
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 705 833,00
Address
KAPITELGASSE 4-6
5020 SALZBURG
Austria

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Region
Westösterreich Salzburg Salzburg und Umgebung
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 705 833,00

Beneficiaries (1)

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