Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2018 The Trans-Pacific Partnership Agreement and the Changing Face of Free Trade Agreements: The Resultant Social, Political, and Economic Consequences Joseph Heyliger Walden University Follow this and additional works at: https://scholarworks.edu/dissertations Part of the Public Policy Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact ScholarWorks@waldenu. Walden University College of Social and Behavioral Sciences This is to certify that the doctoral dissertation by Joseph Randolph Heyliger has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made.
Review Committee Dr. Kevin Fandl, Committee Chairperson, Public Policy and Administration Faculty Dr. Gloria Billingsley, Committee Member, Public Policy and Administration Faculty Dr. Tanya Settles, University Reviewer, Public Policy and Administration Faculty Chief Academic Officer Eric Riedel, Ph.
Walden University 2018 Abstract The Trans-Pacific Partnership Agreement and the Changing Face of Free Trade Agreements: The Resultant Social, Political, and Economic Consequences by Joseph Randolph Heyliger MA, Brooklyn College, CUNY, 2011 MA, Brooklyn College, CUNY, 2005 LL.B, University of the West Indies, 1989 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Administration Walden University June 2018 Abstract Little is known about the impact of nontrade issues on developing countries entering trade agreements. The Trans-Pacific Partnership Agreement (TPPA) represents an attempt to set high-standard trade rules for participating countries in the Asian-Pacific region that require the inclusion of wide-ranging nontrade issues in the TPPA. This general qualitative study explored the economic, social, and political consequences for developing countries by including nontrade issues in Free Trade Agreements (FTAs). The overarching research question addressed whether nontrade issues in FTAs detract developing countries from achieving their trade goals.
This study was guided by the theory of comparative advantage propounded by Ricardo and the focus on trade in goods and services. This general qualitative study used multiple sources of data collection including documentation-primary and secondary online and digital archival data, bibliographies, textbooks, and scholarly trade journals; researcher’s notes; and interviews of 15 participants (13 economists and 2 trade unionists). All data were coded using open, selective, and axial coding followed by Braun and Clarke’s thematic analysis procedure. Data analysis revealed 4 themes that crystallized the findings within the context of the research; the role, ramifications of nontrade issues, trade barriers, and the distraction of developing countries from achieving their goals-tariff reductions, market access, jobs, and economic growth.
The key finding of this study was the interest of participants in wages, health, and safety of workers in FTAs. The implications for positive social change include recommendations for welfare enhancement gained by trade policymakers’ understanding of the consequences of nontrade issues in FTAs. Trans-Pacific Partnership Agreement and the Changing Face of Free Trade Agreements: The Resultant Social, Political, and Economic Consequences by Joseph Randolph Heyliger MA, Brooklyn College, CUNY, 2011 MA, Brooklyn College, CUNY, 2005 LL.B, University of the West Indies, 1989 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Administration Walden University June 2018 Dedication To my dear wife Paula Haywood, who captained the family ship through turbulent seas while I was confined to the role of a mere passenger. With grit, determination, tremendous sacrifice, and skill, she guided the family ship safely to our destination; ably supported by a competent crew manned by my loving daughter and son Tushana and Randall, my mother Eileen, brother Terrence, sister Lavern, and grandchildren: Jotham, Atalia, Yannis and Shaya.
Success is not measured by the heights one attains but by the obstacles one overcomes in its attainment. Washington Acknowledgments I wish to thank the many colleagues, students, and family members who have contributed to the successful completion of this dissertation. I am especially grateful to Dr. Kevin Fandl, my mentor and supervisor, for the seriousness, energy, and scholarship that he exerted on this extraordinary project.
I highly appreciate his expert guidance, advice, content direction, and encouragement that he provided me always during the process, without which, this study may not have had a semblance of academia. Thank you again Dr. Fandl for your steady ‘hand’ of wisdom and I am sure you are having a great sense of relief now that you have taken me across the finish line. Special thanks to Dr.
Gloria Billingsley, who graciously served as my method expert and committee member. Your insightful feedback enriched and dignified the study. For me, it is a fitting continuation of the professor- student relationship we shared during my course work- pre-dissertation phase and how well you have prepared us for the dissertation writing stage of the doctoral program. You are truly an inspiration to many students.
I am indebted to Tobias Ball whose suggestions added strength to the way my argument is communicated to the reader, by making the language clear, precise, and authoritative. Special thanks to Dr. Tanya Settles, who willingly accepted the laborious task of reading the entire dissertation, and whose suggestions helped me achieve the highest level of academia. I am thankful to Walden University for giving me the opportunity to pursue a Ph.D in Public Policy and Administration so that I can bring about positive social change within the community.
I owe a depth of gratitude to the hard-working faculty members and the support staff at Walden University. Without the faculty advisors, library staff, research center, writing center, academic advising, student support, and other support groups I tormented, I would not have been able to successfully complete the dissertation. They are a remarkable group of people. I am indebted to the taxpayers who have funded my tuition during my sojourn at Walden University and to assure them that every penny was well spent.
Where would I have been without their financial contributions? I am grateful to Walden University’s outside editor, Lynn Feneis, who had the tedious task of reading and correcting the entire dissertation, and whose comments significantly improved the readability of this dissertation. It would be remiss of me if I do not express my appreciation for the love support from my wife Paula; children, Tushana and Randall; grandchildren, Jotham, Atalia, Yannis, and Shaya; mother Eileen; brother Terrence; and sister Lavern. It is only fitting, therefore, that I dedicate this study to them. Lastly, but by no means the least, I give thanks to the Almighty God knowing that there is no problem, circumstance, or situation greater than God.
Table of Contents List of Figures. vi Chapter 1: Introduction to the Study.1 Background of the Study .3 Purpose and Significance of Study .6 Theoretical/Conceptual Framework.11 Nature of the Study .16 Expected Social Change .17 Summary and Transition .18 Chapter 2: Literature Review .21 International Trade Theory .25 Extensions to Viner’s Model .27 General Equilibrium Models.28 Meade–Lipsey and Wonnacott–Wonnacott Models .28 i Lloyd–Maclaren Model .31 Method of the New Trade Theory .34 Foundations of FTAs/FCNs/BITS .37 Bilateral Investment Treaties (BITs). 41 Free Trade Agreements (FTAs). 41 The Role of Developing Countries in International Trade .53 Chapter 3: Research Method .55 Justification of Design .56 Role of the Researcher .62 Subjects, Participants, Population, and Sample .79 Context of the Study .79 ii Recruitment and Selection of Participants .80 Researcher Approach to Interview Process .81 Methodology: Coding and Analysis .83 Question 1: Do you think nontrade issues should be included in FTAs?.
84 Question 2: What do you think will be the ramifications of including nontrade issues in FTAs?. 90 Question 3: What impact do you think nontrade issues will have on developing countries?. 97 Question 4: What impact do you think nontrade issues will have on the world trading system in general and the WTO in particular?. 105 Question 5: Why do you think the U.
is increasing its use of nontrade issue in FTAs?. 111 Question 6: Describe how you will defend or oppose the notion expressed by some U. trade partners that nontrade issues present new barriers to international trade?. 117 Question 7: How could the current focus on ontrade issues detract developing countries from the goals they expect to achieve through international trade?.145 Summary and Transition .147 Chapter 5: Discussion, Conclusions, and Recommendations .149 iii Interpretation of Findings and Discussion.
157 Theoretical Framework and Development of Trade Policy. 166 Recommendations for Further Research .166 Applications to Professional Practice .167 Implications for Positive Social Change .171 Reflection on the Researcher’s Experience .179 Appendix A: Interview Protocol .194 iv Appendix B: Invitation Letter to Participate in a Qualitative Research Study .196 Appendix C: Coding Sheet---------------------------------------------------------------------- 198 v List of Figures Figure 1. Viner’s Model of Free Trade Agreement. Meade-Lipsey model of a free trade agreement.
Wonnacott-Wonnacott model of free trade agreement with tariffs or transport costs on exports to the world. Triangulation by method. Braun & Clarke (2006) step-by-step analysis guidelines. Articles/Sources from which data were collected.
73 vi 1 Chapter 1: Introduction to the Study Background of the Study In recent years, economists, politicians, policymakers, and social scientists have intensified the debate about the importance and content of free trade agreements (FTAs). Free trade is a system in which goods, capital, and labor flow freely between nations without barriers to impede the trade process (Brown & Stern, 2011). FTAs are arrangements among two or more countries under which they agree to liberalize trade by reducing or removing trade barriers, and increasing market access in goods and services among themselves (Cooper, 2014). However, as much as free trade seemed to be a beneficial concept, it has become the lightning rod for criticism.
Its detractors blame free trade for the loss of manufacturing jobs in the U., while others blame free trade for exposing some U. producers to foreign competition. Proponents of free trade argued that it has been one of the most important determinants of America’s wealth and strength (Eiras, 2004; Friedman, 2005). more competitive and innovate which provide new technologies and a host of benefits, including increase in production, economic growth, cure for more diseases, improve education, better-paying jobs, and higher standards of living (Eiras, 2004).
Proponents of free trade cited the need for more FTAs and urged the 2 U. Administration to lead negotiations in the World Trade Organization (WTO) to eliminate agricultural subsidies, antidumping measures, and other protectionist policies that benefit a few at the expense of many (Eiras, 2004). Lawrence (1999) asserted that FTAs, not only enhance trade, but they also have dynamic welfare enhancing characteristics such as more economic integration than the elimination of tariffs; reduction in barriers to services trade, foreign investment, and other economic activities not covered by the GATT/WTO, as was the case with NAFTA. Hudgins (1996) argued that while it may be preferable to liberalize trade multilaterally, countries should seize the opportunity to negotiate bilateral and regional FTAs, even if they lead to some trade diversion.
Hudgins posited that FTAs can be more efficient vehicles for addressing difficult trade barriers than the WTO since compromise and consensus are easier to achieve with smaller groups rather than larger ones. This will provide momentum for WTO members to forge ahead with new trade rounds. Opponents of free trade argued that it is responsible for most of the economic woes of the country, including job losses, a sagging manufacturing sector, increase in inequality and poverty (Stiglitz, 2012). Bhagwati (2000) and Krueger (2013) opposed FTAs by asserting that FTAs undermine the development of the multilateral trading system and act as a stumbling block to global trade liberalization.
Bhagwati concluded that FTAs are discriminatory and therefore trade diverting. Another group that includes labor unions, social actions groups, and environmentalists, opposes FTAs and trade liberalization.