Hegemonic Theory in

WTO
WEEK 6
 Today, all countries
are Capitalism. –Barry
Buzan Market
Liberalism

Standard
in WTO
Non-
Dicsrimination
Non-Discrimination in WTO

Most Favored
Nation

Generalized
System • Equality (to
other developing
Preferences countries)
(GSP)

National
Treatment
WTO = Public Goods
WTO The Analogic
between WTO
and public radio

Non-
Non-Rivalry
Excludability

• Institusi internasional (WTO) memiliki karakteristik seperti barang publik. Syarat dan ketentuannya
dapat menyulitkan ‘free riding’.
• Seluruh anggota ingin menegakkan aturan perdagangan bebas, tapi masing-masing ingin anggota lain
yang bersedia menanggung biaya menyediakan peraturan.
Hegemonic Theory

Hegemon Country
Hegemon (New Economic Theory)

Priveleged Overcome Total Output

Leading
Groups Free-Riding Technology

4 Reason of Hegemony :
3. Mengatur bagaimana kebijakan diatur di antara negara-negara yang kuat dalam
perekonomian
Challenges of WTO

Non-State
Member
Actor

• Emergance of developing Safeguard consumer and

countries (complicated to decision environmental interests
making) → ‘Single Undertaking’ Study Case : mad cow,
• Different between comparative (anthrax), tooth brush, avocado
advantage (USA vs Mexico)
RTA = Challenges or Complementary?

 Regionalisme mengarah pada pelanggaran terhadap prinsip nondiskriminasi WTO

di mana negara anggota dari RTA mendiskriminasi kebijakan perdagangangannya
demi anggota dari RTA lain dan ‘melawan’ bagi non-anggota
 Diperbolehkan oleh WTO: FTA/CU (Free trade area/custom union)
 Multilateralisme tidak memberi solusi, regionalisme menjadi opsi/alternatif
 Hampir setiap anggota WTO adalah anggota dari RTA lain
 Keberadaan 150 RTA

RTA make trade creation and trade diversion.

-Viner Analysis-
The Transition of Hegemonic Country
Year Leader Gain / Achievement

1820 Great Britain (GB) American only 1/3 from GB

1870 Great Britain GB and USA same size output

1914 (World War I) Great Britain USA twice than GB

1920 Great Britain → USA GB want reconstructing but lacked resources.

USA wasn’t willing to expend necessary
resources. USA prtoectionism because ‘Wall
Street Crash’.
1945 USA • USA produced half of manufactured world
(end of WW II) • Bretton Woods System.

1960-1980 USA Although Japan grew, USA still lead by make

(almost 20 years) bilateral initiatives (protectionism)

Mid-1990 USA • Japan recover crisis (stagnation)

• USA established WTO (multilateral)
2027 CHINA (?) Prediction by Goldman Sachs
Trade Deficit Between USA and CHINA

What USA or China do?

1. Protection (Non Tariff

Barriers)
2. Bilateral Agreement
3. Multilateral Agreement (a new
int. Reagime)