Prompt 4 - 4 Power Outcomes The importance of power has...

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The importance of power has become the subject of many proverbs. We know that “power is freedom,” that “virtue subdues power,” and that “power is strengthened by union.” Although they have become old adages, each helps to demonstrate the role of power in particular issue areas of the global economy. In terms of bilateral trade agreements, those who hold power have had the freedom to disregard other states and the WTO. When considering environmental policy, America has avoided virtuous action to retain its power. For energy, organizations like the 7 sisters and OPEC have proven the value of union in achieving power. This essay will demonstrate how power has manifested itself in each case, how that manifestation has affected outcome, and how each old adage describes the situation. Since the dawn of the Bretton Woods era, hundreds of bilateral trade agreements have been negotiated and put into practice. This has occurred despite both the existence of GATT/WTO which has specific clauses designed to limit RTAs. What explains this phenomenon? Bilateral trade agreements have proliferated because states hold more power than the WTO. The WTO has both sloppy wording regarding RTAs, and no enforcement. Article 24 allows evasion due to ambiguity by declaring that RTAs must eliminate tariffs on “substantially all” goods. Even if the WTO did find a clear violation, it could only declare the parties “out of compliance.” Although this failed regulation was unintentional, for the past 60 years the state
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This note was uploaded on 06/06/2010 for the course POL S 186 taught by Professor Cohen during the Winter '10 term at UCSB.

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Prompt 4 - 4 Power Outcomes The importance of power has...

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