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The Political Economy of Hemispheric Integration: Responding to Globalization
in the Americas

Edited by Diego Sánchez-Ancochea and Kenneth C. Shadlen

Palgrave Macmillan, 2008
$84.95 – Hardcover
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The 1990s and the early years of the 21st century have witnessed the emergence and proliferation of regional and bilateral trade agreements (RBTAs) between developed and developing countries in the Americas. These agreements typically liberalize trade in most goods and services, and they also coordinate measures on a broad range of economic policy areas beyond trade. The first and most prominent of these agreements is the North American Free Trade Agreement (NAFTA), which the USA, Canada and Mexico signed in the early 1990s. In subsequent years, the USA has concluded agreements with a number of countries in Latin America and the Caribbean.

The contributors to this book systematically evaluate the economics and politics of this new pattern of North-South integration in the Americas. The book begins by considering the developmental implications of this new pattern of integration. Such agreements provide Latin American and Caribbean countries with significantly improved access to the US market, yet purchasing such preferential access via negotiation of RBTAs agreements with the US obliges countries to adopt US-style practices in areas such as the management of inward foreign investment and intellectual property. The first half of the volume addresses these issues, focusing on the challenges derived from new patterns of foreign investment, the rise of China as an exporting power, the emergence of a new regime for investment protection, and the multiplicity of intrusive forms of economic governance embodied in regional and global trade regimes.

The second half of the book focuses on both the proliferation of RBTAs, and, critically, the limits to the spread of such agreements. The authors consider the interests in integration and strategies for negotiating RBTAs from the perspective of a variety of actors, deploying a range of analytic approaches. The chapters assess the capacities of the US to fulfill ambitions for integration, the strategy of Canada to both maintain close relations with the US and counterbalance its neighbor’s preponderant influence throughout the region, the response of smaller countries in Central America and the Caribbean, reactions toward integration of the larger South American countries in Mercosur, and the broader question of how developing countries form coalitions and design collective bargaining strategies to participate in international trade politics.

This book consists of revised versions of original papers written for an international conference, co-hosted by the Institute for the Study of the Americas and the London School of Economics, in June 2006. The contributors, from Europe, North America, Mexico, and South America, are Luis Abugattas, Adhemar Bahadian, Mauricio Carvalho Lyrio, Enrique Dussel Peters, Laura Macdonald, Michael Mortimore, Eva Paus, Nicola Phillips, Diego Sánchez-Ancochea, Ken Shadlen, Diana Tussie, Gus Van Harten.

Table of Contents

  1. Introduction: Globalization, Integration, and the Political Economy of Development in the Americas (Diego Sánchez-Ancochea & Kenneth C. Shadlen)


  2. The Transnationalization of Developing America: Trends, Challenges, and (Missed) Opportunities (Michael Mortimore)
  3. What Does China's Integration to the Global Economy Mean for Latin America? The Mexican Experience (Enrique Dussel Peters)
  4. Investment Treaty Arbitration and the Policy Implications for Capital-Importing Countries (Gus Van Harten)
  5. Policy Space for a Capability-Centered Development Strategy for Latin America (Luis Abugattas & Eva Paus)


  6. The Politics of Trade and the Limits to U.S. Power in the Americas (Nicola Phillips)
  7. State and Society: The Politics of DR-CAFTA in Costa Rica, the Dominican Republic, and El Salvador (Diego Sánchez-Ancochea)
  8. FTAA Trade Negotiations: A View of the Brazilian Co-Chairmanship (Adhemar Bahadian & Mauricio Carvalho Lyrio)
  9. Canada and the Politics of Regional Economic Integration in the Americas (Laura Macdonald)
  10. Trade Negotiations and Development Politics: Caving In or Edging Up? (Diana Tussie)

Diego Sánchez-Ancochea is University Lecturer in Political Economy of Latin America at the University of Oxford and fellow of St Antony´s College (from October 2008).  He previously worked for five years at the Institute for the Study of the Americas (University of London).  His research concentrates on state-society interactions, income inequality and public policy in small Latin American countries.  Recent publications include the co-edited volumes Transnational Corporations and Development Policy, Palgrave McMillan, forthcoming, 2008 (with Eric Rugraff and Andrew Sumner) and The Political Economy of the Public Budget in the Americas, ISA, forthcoming, 2009 (with Iwan Morgan).  He is also co-guest editor of the Special Issue on Latin America´s Capitalism that will appear in Economy and Society in January 2009.

Kenneth C. Shadlen is Senior Lecturer in Development Studies at the London School of Economics, and Senior Research Fellow at Tufts University’s Global Development and Environment Institute. He is the author of Democratization Without Representation: The Politics of Small Industry in Mexico (Penn State University Press, 2004 [paperback, 2006]). His current research addresses the politics of intellectual property (IP) and North-South economic integration. Recent articles include “Globalization, Power, and Integration: The Political Economy of Regional and Bilateral Trade Agreements in the Americas” (Journal of Development Studies, January 2008), “The Political Economy of AIDS Treatment: Intellectual Property and the Transformation of Generic Supply” (International Studies Quarterly, September 2007), “Intellectual Property, Trade, and Development: Can Foes be Friends?” (Global Governance, June  2007), “Exchanging Development for Market Access? Deep Integration and Industrial Policy under Multilateral and Regional-Bilateral Trade Agreements” (Review of International Political Economy, December 2005). The working title of his new book is Knowledge Trap: The New Politics of Intellectual Property in Latin America. Shadlen received his PhD. in Political Science from the University of California, Berkeley, in 1997.

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