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Here's the real story every time you read about the comparison between multilateral and bilateral international agreements (speaking very generally): * Powerfu
by hackuser 10y ago
Here's the real story every time you read about the comparison between multilateral and bilateral international agreements (speaking very generally):
* Powerful nations want bilateral agreements, because it's the strong negotiating with the weak. Imagine the U.S. negotiating a trade deal with Nicaragua: The U.S. position is overwhelmingly strong; they could walk away and cancel all trade with Nicaragua; the U.S. would hardly notice and Nicaragua's economy would be devastated. (EDIT: I'll add that this is true of the powerful everywhere; e.g., large businesses don't want to negotiate with government or Congress (law and regulation) or a class in court (a class action), they want to deal with individual consumers one by one.)
* Supporters of an international rules-based, law-based order, and of a democratic and rights-based order want broad multilateral agreements. Then the weak nations can band together and resist the powerful; it gives them self-determination, the foundation of democracy; it creates rule of law rather than rule of the powerful. Also, instead of an exceptionally complex system of individual agreements between each pair of countries, it creates one standard - much more like a law. Imagine a global business trying to parse the individual trade deals between every pair of countries from its supply chain to its retail customers - an incredibly, needlessly complex level of regulation compared to one international standard. Imagine if the 50 U.S. states only had bilateral trade deals with each other - that would be 1,225 deals, endless red tape for a national business (and there are many more countries than U.S. states). A major reason the U.S. is so wealthy is that it's the largest single, unified economy; that's what the EU hopes to equal.
For example, in the South China Sea, China says they want bilateral negotiations with each country - they oppose the current U.S.-led international order and want negotiations they can dominate. The U.S. and China's neighbors want a multilateral deal; they want to continue the rule of international law and the U.S.-led order, and want to negotiate from a position of strength.
My guess in this case is that it's a reflection of the fact that Trump, the Republicans, and their big business constituents prefer rule of the powerful.
- jwtadvice 10y agoThank you! Very keen. To add to this comment, there’s more nuance when speaking less generally: * In cases where there is competition between powerful nations, weaker nations can and do gain advantage by playing the interests of one country off of one another. For instance, during the Cold War the United States and Soviet Union would engage in trade, weapons, and security deals. States caught in the middle understood that both empires were competing with one another to either expand their network outward or prevent the other from doing so (America often included “and you may not trade with the Soviet Union” as an aspect of its bilateral negotiations) would try to internalize the security/strategic value that the empires sought - rather than the pure quid-pro-quo of markets. * The United States effort with both NAFTA and the TPP were to contain Russia and China, respectively, by building a coalition of countries with trade that excludes each specific United States adversary. This strategically weaponizes the second point above: coalitions of nations together banded together against a more powerful economic force. Similarly, the Chinese RCEP agreement bands together trade centered around the Chinese economy, and excludes the United States. Indeed, the Soviet Union was, as a security/power concept, an idea that a trade network on the Eurasian Supercontinent would be able to outperform and outcompete other continental sized trade networks (the United States), which led the United States to disrupt the trade framework with proxy war, etc. * Similar episodes are common throughout history: Nasser’s Egypt had tried, unsuccessfully, to create a Republic of Arab nations in the Middle East, so that they could collectively bargain and negotiate with external powers such as Europe and the United States. This was considered a security threat to these powers, because the West much preferred strong-on-weak bilateral agreements, protectorates and mandates. From the security side of the coin, great nations including China, Russia (now the Eurasian Union), and the United States strategically try to build coalitions of small nations against their powerful adversaries in an attempt to disrupt their ability to successfully compete. The Trump Administration decision to abandon this represents an idea that the United States will be able to “out-deal” regional competitors (primarily China but also Japan, South Korea) on a one-for-one basis. My guess is that the diplomacy will get very nasty - even if its all in the back room.
- hackuser 10y agoThanks; that's a great addition to the discussion. One important nit: > The United States effort with both NAFTA and the TPP were to contain Russia and China, respectively, by building a coalition of countries with trade that excludes each specific United States adversary As I understand it (I'm no expert in the field), U.S. policy in regard to China is that its rise to superpower status is inevitable, and the U.S.'s strategy is to get China to join a rules-based (i.e., law-based) international order - preferably the existing one - rather than create an anarchic great power competition that often results in terrible wars. On a political level, TPP was designed as a step in that direction; it wasn't intended to exclude China but to compel them to join a rules-based trade regime for the Pacific - i.e., either play by the rules or be excluded from trade. The goal was that they would join.
- jwtadvice 10y ago> As I understand it (I'm no expert in the field), U.S. policy in regard to China is that its rise to superpower status is inevitable Interesting. My understanding is quite the opposite: that the U.S. policy in regard to China is that its rise to superpower status is in question. China is 25 years or more from being on par with the United States in terms of military projection in its own region (much less power projection in distant lands and seas). China has legitimate issues with all of its territories that have strategic resources: its water is in Tibet, its minerals and oil is in its Uyghur region. The United States today has China surrounded by the "first island chain." China's economy is robust, but has inherent weaknesses that could cause it to fracture as it tries to jump the 'middle income gap'. Indeed out of several dozens of states that have attempted jumping the gap, only a couple have succeeded. Ongoing sovereignty disputes in Hong Kong and Taiwan keep the Chinese mainland divided and focused in on its own territory. Japan today could match Chinese military might, and with the right trajectories could maintain an upper hand in the future. America has tried to block Chinese multilateral/international banking efforts (AIIB, ADB, etc) and it's admission into the Special Economic Basket of currencies at the IMF. Today the United States (well, under the prior administration...) is trying to prevent full membership of China inside the WTO, and it's membership isn't guaranteed. India forms a natural check on Chinese regional power as its population is larger than China and its economy is growing at even faster rates. Russia (which shares a huge and important border with China) and America both eye China and it's ambitions and could individually or together align to snuff Chinese expansion where they to find a good justification. China's international investments are questionable, as much of them are in countries with poor histories of solvency (this is a strategic bet on the part of China). It's One Belt One Road infrastructure project is vulnerable to stability issues in Central Asia (of which there is a long history). The people's party in China also (rightly) fears regime change operations in their country - this remains a real possibility. China has a burgeoning nuclear power (DPRK) on its border, a nation in dispute with a long time American military protectorate. The United States has a lot of issues it can make with China, from internation trade, currency practices, South China Sea settlement, Taiwan and recognition of independence, Japanese security (look at their reform of National Security legislation), Indian bolstering, Korean Unification, Russia's far east, Central Asian proxies, etc. The United States is hoping that, with containment pressure on all of China's strategic bets that it won't be able to realize its ambitions to greatness - and will fizzle. This is a practiced playbook: it's how the United States prevented the Soviet Union from realizing super power parity. Curiously, the timeline originally predicted by strategic thinkers for the Soviet Union for parity was also "25 years." Including China into the "rules-based international order" isn't code for "we want a nation as powerful as our own to also rule the international order." The United States Grand Stategy toward China - indeed toward any and every potential adversary - is to prevent their rise by raising obstacles and costs to its succession.
- pavlov 10y agoPowerful nations want bilateral agreements, because it's the strong negotiating with the weak. And this is why "hard Brexit" is such a risky endeavor for the UK. The EU is much larger and more experienced in trade deals. From day one Britain will be negotiating from a position of weakness. Once negotiations begin, Britain has a hard 2-year deadline... And to make it worse, they don't have people with experience in bilateral trade agreements because the EU has been in charge of those for 40 years. The British press is trying to spin this inherently weak position into a matter of EU countries looking to punish Britain, or other such nonsense.
- hackuser 10y agoI'd add that the leading European nations, such as the UK, Germany and France, used to be global powers. Power, soft and hard, depends in large part on pure economic capacity; that enables many things, including economic leverage, larger militaries, and high tech. I don't have the old numbers, but look at this list and imagine their relative power as individual nations before the rise of China and India: https://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29 https://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28no... But China and India likely will take two of the top three spots, along with the U.S., leaving those individual European powers far behind - $5 trillion economies in a world of $25 trillion superpowers (making a guess at future growth). They will be small fish among the sharks, no longer with a place at the table or influence on global affairs. A unified EU would be a fourth power, but that takes time, especially the political unification necessary to conduct foreign affairs (where the EU government has unified control of foreign policy - otherwise their words aren't backed up by the actual power). They are moving the wrong way.
- rayiner 10y ago> Supporters of an international rules-based, law-based order, and of a democratic and rights-based order want broad multilateral agreements. Then the weak nations can band together and resist the powerful; it gives them self-determination, the foundation of democracy; it creates rule of law rather than rule of the powerful. Ironically, most of those small, weaker countries are not democratic.
- hackuser 10y agoYes, and it raises a challenge: Who speaks for their citizens? I think the best argument is that their own governments do - that's true de facto, regardless; and foreign powers are very poor and understanding the needs of locals, no matter how good-willed. The foreign powers tell them what's good for them (and coincidentally what never conflicts with the foreign powers' interests); they don't listen so well.