International trade institution and arrangement linkages as a determinant of foreign trade negotiations.

Abstract

An increasing number of foreign trade negotiations have emerged at the multilateral, regional and bilateral levels over the past decades. Countries around the globe look towards the achievements of these foreign trade negotiations as politico-economic leverages that can help them enhance their positioning in the world arena. As a resultant, a complex web of international trade institutions and arrangements is born. This article argues that existing trade institutions and arrangements serve as linkages that can be used among country negotiators in newer trade negotiations. Using the case of the Thai- Australian FTA negotiations and the Thai-US FTA negotiations, we reflect on how international trade institution and arrangement linkages constitute as an important determinant of foreign trade negotiations. Through the qualitative approach, findings suggest that successful FTA negotiation outcome is likely to occur when two countries maintain similar past/concurrent trade institutions and arrangements as in the case of the Thai-Australian FTA. On the other hand, unsuccessful FTA negotiation outcome is likely to occur when past/concurrent trade institutions and arrangements of two countries vary from one another as in the case of the Thai-US FTA.