www.ebook3000.com Negotiating Trade Liberalization in Argentina and Chile “This volume examines the interaction between domestic and international negotiations in trade politics With its focus on Argentina and Chile it provides an important empirical contribution to the debate. Eugộnia da Conceiỗóo-Heldt, Technical University of Munich “This book offers a major contribution to our understanding of how international trade negotiations – South-South, North-South, and multilateral – affect domestic trade politics Andrea Bianculli delivers a clear and engaging account of Argentina and Chile at a historic turning point in Latin America’s trade relations.” Soo Yeon Kim, National University of Singapore How international negotiations affect domestic politics? Starting in the 1990s, countries throughout Latin America embarked on many and simultaneous negotiations On the shifting ground of widening and deepening trade agendas and diverse arenas, what factors determined trade politics? This book examines the domestic political dynamics triggered by South-South, North-South and multilateral agendas in Argentina and Chile between 1990 and 2005 Using a much-needed cross-negotiation and cross-country comparative perspectives, and through detailed empirical analyses of several key negotiations, it proposes an explanation that emphasizes the interplay between international negotiations and domestic trade politics, taken as the result of the complex and dynamic interdependencies and interrelations between state and society Informed by interviews with public officials, businesses and civil society, the analysis reveals that variation in the depth of agendas, the distributional effects and the uncertainty of political outcomes all have important consequences for domestic preference formation, collective action strategies and types of relationships Given this, the variety of negotiations, when considered separately and comparatively, show that South-South, North-South and multilateral processes promote different patterns of trade politics In sum, although national specificities and historical legacies are important, the book argues that trade policy comes first in creating domestic politics in Latin America Andrea C Bianculli is Juan de la Cierva-Incorporación Fellow at Institut Barcelona d’Estudis Internacionals (IBEI) Her research crosses international and comparative political economy, and lies in the areas of global and regional governance, trade, regulation and development, with a particular focus on Latin America Routledge Studies in Latin American Politics For a full list of titles in this series, please visit www.routledge.com 10 Transforming Brazil A History of National Development in the Postwar Era Rafael R Ioris 11 Pharmaceutical Autonomy and Public Health in Latin America State, Society, and Industry in Brazil’s AIDS Program Matthew Flynn 12 Civil-Military Relations in Post-Conflict Societies Transforming the Role of the Military in Central America Orlando J Pérez 13 Re-Imagining Community and Civil Society In Latin America and the Caribbean Edited by Gordana Yovanovich and Roberta Rice 14 Revolutionary Violence and the New Left Transnational Perspectives Edited by Alberto Martín Álvarez and Eduardo Rey Tristán 15 Business-State Relations in Brazil Challenges of the Port Reform Lobby Mahrukh Doctor 16 The Politics of Capitalist Transformation Brazilian Informatics Policy, Regime Change, and State Autonomy Jeffrey G Seward 17 Negotiating Trade Liberalization in Argentina and Chile When Policy Creates Politics Andrea C Bianculli www.ebook3000.com Negotiating Trade Liberalization in Argentina and Chile When Policy Creates Politics Andrea C Bianculli First published 2017 by Routledge 711 Third Avenue, New York, NY 10017 and by Routledge Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2017 Taylor & Francis The right of Andrea C Bianculli to be identified as author of this work has been asserted by her in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe Library of Congress Cataloging in Publication Data A catalog record for this book has been requested ISBN: 978-1-138-94926-3 (hbk) ISBN: 978-1-315-66918-2 (ebk) Typeset in Times New Roman by Apex CoVantage, LLC www.ebook3000.com To the memory of my Mum www.ebook3000.com Contents List of Illustrationsix List of Abbreviationsx Acknowledgmentsxiv PART I Making Sense of Trade: Arguments and Politics1 The Contours of Trade Politics Unravelling Trade Politics: A Cross-Negotiation Perspective18 PART II Latin America in a Complex Web of Trade Negotiations41 Trade Politics in Latin America: Institutional Legacies and Political Dynamics 43 Trade Politics in Argentina 70 Trade Politics in Chile 97 PART III When Policy Creates Trade Politics125 Trade Politics in Comparative Perspective 127 Trade Politics in Latin America: Past Lessons, Future Challenges 151 viii Contents Appendix 1: Breakdown of Interviews169 Appendix 2: List of Trade Agreements Signed by Argentina and Chile (1990–2005)170 Index172 www.ebook3000.com Illustrations Figure 2.1 Fifteen years of trade negotiations in Argentina and Chile 32 Tables 2.1 2.2 4.1 4.2 4.3 5.1 5.2 5.3 Four ideal types of trade politics Selected trade agreements in Argentina and Chile South-South trade negotiations in Argentina North-South trade negotiations in Argentina Multilateral trade negotiations under the WTO in Argentina South-South trade negotiations in Chile North-South trade negotiations in Chile Multilateral trade negotiations under the WTO in Chile 29 35 79 88 94 107 117 121 Appendix 1: Breakdown of Interviews ARGENTINA Type Number Public officials Business representatives Labour representatives Civil society organizations Experts Total 12 3 28 CHILE Type Number Public officials Business representatives Labour representatives Civil society organizations Experts Total 21 Appendix 2: List of Trade Agreements Signed by Argentina and Chile (1990–2005) 1 Trade Agreements Signed by Argentina (1990–2005) Partner Date of signature Brazil (ECA N° 14) MERCOSUR members Chile (PS ECA N° 16) Paraguay (ECA N° 13) Multilateral Agreement: WTO MERCOSUR-Chile (ECA N° 35) MERCOSUR-Bolivia (ECA N° 36) MERCOSUR-Mexico (ECA N° 54; framework agreement) MERCOSUR-Mexico (ECA N° 55; auto sector agreement) Uruguay (ECA N° 57; auto sector agreement) MERCOSUR-India MERCOSUR-Colombia, Ecuador and Venezuela (PS ECA N° 59) MERCOSUR-Morocco MERCOSUR-Peru (ECA N° 58) 1990 1991 1991 1992 1995 1996 1996 2002 2002 2003 2004 2004 2004 2005 Source: Author-created based on Organization of American States’ Foreign Trade Information System, last accessed July 2016 2 Trade Agreements Signed by Chile (1990–2005) Partner Date of signature Mexico (ECA N° 17) Argentina (PS ECA N° 16) Venezuela (PS ECA N° 23) Bolivia (PS ECA N° 22) Colombia Ecuador Multilateral Agreement: WTO MERCOSUR (ECA N° 35) Canada Peru (ECA N° 38) Mexico (FTA) 1991 1991 1993 1993 1993 1994 1995 1996 1996 1998 1998 www.ebook3000.com Appendix 2 171 Partner Date of signature Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua (Chile-Central America) European Union Republic of Korea United States European Free Trade Association Brunei, New Zealand, Singapore (P-4) China 1999 2002 2003 2003 2003 2005 2005 Source: Author-created based on Organization of American States’ Foreign Trade Information System, last accessed July 2016, and DIRECON, last accessed July 2016 Index ’4+1’ scheme 73 ABAC see APEC Business Advisory Council (ABAC) ABF see Americas Business Forum (ABF) ABIF see Chilean Association of Banks and Financial Institutions (ABIF) ACIEL see Coordinating Association for Free Businessmen’s Institutions (ACIEL) Acindar 81 ACJR see Chilean Alliance for Fair and Responsible Trade (ACJR) activism 108 – 13 AD see Democratic Alliance (AD) ADIMRA see Argentine Association of Metallurgical Industry (ADIMRA) Administrative Commission 98 Advisory Commission for LAFTA 56 Advisory Council on Foreign Trade (CACE) 81, 114, 128, 131, 134, 139 AEA see Argentine Business Association (AEA) AFL-CIO see American Federation of Labour-Congress of Industrial Organizations (AFL-CIO) Agrarian Research and Policy Office (ODEPA) 115, 119, 134 – 5 Agreement on the Trade Related Aspects of Intellectual Property Rights (TRIPs) 89 agricultural trade liberalization 118 ALBA see Bolivarian Alliance of the Americas (ALBA) Alessandri, Jorge 56 Alfonsín, Rẳl 49 Alianza 52, 83, 139 Allende, Salvador 57, 103 AmCham see American Chamber of Commerce (AmCham) American Chamber of Commerce (AmCham) 111, 131 American Federation of LabourCongress of Industrial Organizations (AFL-CIO) 112 Americas Business Forum (ABF) 81 – 3, 111, 132 Andean Community (CAN) 58, 76, 108, 136 APA see Chilean Association of Poultry Producers (APA) APEC see Asia Pacific Economic Cooperation (APEC) Summit APEC Business Advisory Council (ABAC) 131 APLA see Latin American Petrochemical and Chemical Association (APLA) APYME see Assembly of Small and Medium Entrepreneurs (APYME) Argentina 43 – 54; ‘Argentine interregnum’ 46 – 8; business sector in 47; democracy in 43, 49 – 52, 64; divergence in 10 – 11; diversity in 10 – 11; Economic Complementation Agreement, extension of 73 – 4; economic policy in 46; financial obligations of, default in 52; GDP in 46, 52; governance 46 – 8; IMF, member of 46, 52; industrialization 44 – 6; institutional instability 46 – 8; international trade in, collapse of 44; labour organizations in 47; LAFTA, creation of 46; Ministries of Economy and Foreign Relations in 74; Peronism 44 – 6, 50; political economy of 43; Process of National www.ebook3000.com Index 173 Reorganization in 48; state-society relations 44 – 6, 52 – 4; structural differences in 10 – 11; trade agreements signed by 170; trade liberalization in 138; trade negotiations with 71; trade policy in 137; WB, member of 46; WTO, participation in 70; see also Argentina, trade politics in Argentina, trade politics in 70 – 94; contours of 10 – 11; multilateral trade negotiations under WTO 89 – 93; North-South trade negotiations 79 – 87; regional negotiations 70 – 7; SouthSouth trade negotiations 70 – 9; see also Argentina Argentine Agrarian Federation (FAA) 83 Argentine Association of Metallurgical Industry (ADIMRA) 75, 77 Argentine Business Association (AEA) 54 Argentine Chamber of Construction (CAMARCO) 53, 132 Argentine Chamber of Exporters (CERA) 77, 81, 91 Argentine Entrepreneurial Council (CEA) 47 – 8, 54 Argentine Industrial Union (UIA) 44 – 5, 47 – 9, 73, 75, 77, 83, 86, 142, 144; CGE and 45, 47 – 8, 51; FTAA and 81; industrial interests in 91; military control of 48; Productive Group and 53; SOFOFA and 135; SRA and 51 Argentine Institute for Trade Promotion (IAPI) 44 Argentine Institute of Standardization and Certification (IRAM) 72, 82 ‘Argentine interregnum’ 46 – 8 Argentine Oil Industry Chamber (CIARA) 77, 91 – 2 Argentine Rural Society (SRA) 44 – 5, 47, 51, 75, 77, 85 – 6; FTAA and 81 Argentine Workers’ Central Union (CTA) 53 – 4, 83, 87, 93, 133 Aritzia, Ricardo 109 Article 20 of the WTO Agreement on Agriculture 134 ASEXMA see Association of Manufacture and Services Exporters (ASEXMA) Asia Pacific Economic Cooperation (APEC) Summit 103 Asociación Conciencia 82, 88 ASOEX see Chilean Association of Fruit Exporters (ASOEX) Assembly of Small and Medium Entrepreneurs (APYME) 83 Association of Manufacture and Services Exporters (ASEXMA) 101 – 2, 108, 110, 114, 119 Aylwin, Patricio 97 Bahía Blanca Grain Exchange 91 barrio and South-South regional negotiations 97 – 106; China 103 – 6; MERCOSUR 100 – 3; Mexico 97 – 100 Berlin Wall 136 Bilateral Council for Trade and Investment 99 Bi-regional Negotiating Committee 86 BNHI see Business Network for Hemispheric Integration (BNHI) Bolivarian Alliance of the Americas (ALBA) 162 Bolivia 71, 101 Brazil: Chamber of the Chemical and Petrochemical Industries and 72; Economic Complementation Agreement, extension of 73 – 4; LAFTA in 46; trade unions in 83 Buenos Aires 83 Buenos Aires Grain Exchange 91 Bush, George H W 80, 107 business 24, 45 – 6 Business Advisory Mechanism 128 Business Network for Hemispheric Integration (BNHI) 81, 110, 132 business sector in Argentina 47 CAC 47, 75, 132 CACE see Advisory Council on Foreign Trade (CACE) CAFTA-DR see Dominican RepublicCentral America FTA (CAFTA-DR) CAMARCO see Argentine Chamber of Construction (CAMARCO) Campbell, Jorge 71 – 2 Camport see Chamber of Maritime Transport and Ports (Camport) CAN see Andean Community (CAN) Canada 107 – 8, 133 Cancun Ministerial Meeting CAP see Common Agricultural Policy (CAP) capital/capitalism 50, 55 174 Index Captains of Industry 49 – 50, 64 Cavallo, Domingo 50, 52, 71, 90 CChC see Chilean Construction Chamber (CChC) CCS see Santiago Chamber of Commerce (CCS) CCSC see Civil Society Consultative Council (CCSC) CCSCS see Southern Cone Coordinator of Central Trade Unions (CCSCS) CEA see Argentine Entrepreneurial Council (CEA) CEDHA see Centre for Human Rights and Environment (CEDHA) CEI see Centre for International Economy (CEI) Central Bank 50, 56, 114 Centre for Human Rights and Environment (CEDHA) 84, 92 Centre for International Economy (CEI) 74, 76, 90 – 1 Centre for Production Studies (CEP) 74 Centre of Iron and Steel Industrialists (CIS) 75 CEP see Centre for Production Studies (CEP) CERA see Argentine Chamber of Exporters (CERA) CES see Coalition of Service Exporters (CES); Social and Economic Conference (CES); Social and Economic Council (CES) CET see Common External Tariff (CET) CGE see General Economic Confederation (CGE) CGT see General Confederation of Labour (CGT) Chamber of Grain Exporters 91 Chamber of Industrial Food Products Manufacturers (CIPA) 75 Chamber of Maritime Transport and Ports (Camport) 109 Chamber of the Chemical and Petrochemical Industries (CIQyP) 72, 75, 81 – 2, 85, 91, 129, 141 – 2 chaotic adjustment 48 Chávez, Hugo Chicago Boys 58 Chile 54 – 63; democratic governance 56 – 60, 60 – 4; divergence in 10 – 11; diversity in 10 – 11; European Union, trade negotiations with 108; FDI in 56, 100; financial crisis in 59; free trade in 138; FTA, trade negotiations with 114; gross domestic product in 57; international trade in 44, 141; ISI strategy in 54 – 5; LAFTA in 46; market reform in 54; MERCOSUR, member of 71; NAFTA, incorporation into 98, 107, 133; political economy of 43; political polarization 56 – 7; Second Summit of the Americas in 80; state-led industrialization in 55; state-society relations 54 – 5; structural differences in 10 – 11; trade agreements signed by 170 – 1; trade liberalization and implementation in 100; trade negotiations with 71; trade unions in 83; see also Chile, trade politics in Chile, trade politics in 97 – 121; barrio and South-South regional negotiations 97 – 106; contours of 10 – 11; multilateral trade negotiations 118 – 20; North-South negotiations 107 – 16; see also Chile Chilean Alliance for Fair and Responsible Trade (ACJR) 111 – 12, 133, 145 Chilean Association of Banks and Financial Institutions (ABIF) 102 Chilean Association of Fruit Exporters (ASOEX) 104, 109 Chilean Association of Poultry Producers (APA) 104 Chilean Chamber of Customs 109 Chilean Chapter of the HSA 111 – 12 Chilean Construction Chamber (CChC) 102 Chilean Economic Development Agency (CORFO) 55 – 7, 110 Chile-EU Association Agreement 113 Chilefood 109 China, trade negotiations with 97, 103, 128 Christian Democrats 60 CIARA see Argentine Oil Industry Chamber (CIARA) CICI see Inter-Ministerial Commission of International Trade (CICI) CIEPLAN see Corporation of Studies for Latin America (CIEPLAN) CILFA see Industrial Chamber of Argentine Pharmaceutical Laboratories (CILFA) CIOSL see International Confederation of Free Trade Unions (CIOSL) www.ebook3000.com Index 175 CIPA see Chamber of Industrial Food Products Manufacturers (CIPA) CIQyP see Chamber of the Chemical and Petrochemical Industries (CIQyP) CIS see Centre of Iron and Steel Industrialists (CIS) Citizens’ Justice and Human Rights Forum (FOCO) 84 Civil Society Consultative Council (CCSC) 77, 81, 83 – 4, 87, 140, 146 civil society organizations (CSOs) 6, 73, 83, 87, 99 – 100, 111 – 13, 116; complaints of 136; expansion of 8; FTAA and 82, 146; NGOs and 148, 155; in Southern Cone 133; trade agenda of 154; trade policy and 25; trade unions and 129, 131, 144 – 6, 156 – 7 Claro, Juan 109 Clinton administration 107 close-economy strategy CMN see Committee of Normalization (CMN) CNC see National Chamber of Commerce (CNC) CNCE see National Commission of Foreign Trade (CNCE) CNCI see National Council on International Trade (CNCI) CNE see National Corporation for Exporters (CNE) CNS see National Trade Union Coordinating Body (CNS) Coalition of Service Exporters (CES) 110 collaborative strategy 28 – 30 collective action, Olson’s theory of 25 – 6 Colombia 80 Commission of International Negotiations and Exports 114 Committee for the Private Sector Participation 101 – 2, 104, 115 Committee of Negotiators 101 Committee of Normalization (CMN) 72 Common Agricultural Policy (CAP) 84, 91 Common External Tariff (CET) 71, 73, 137 Common Market of the South (MERCOSUR) 3, 162; Argentine Institute of Standardization and Certification and 72; Chile, member of 71; China, trade negotiations with 97; CNC and 102; CPC and 142 – 3; creation of 75, 139; crisis faced by 137; enlargement of 73; European Union, trade negotiations with 84 – 7, 113 – 16, 146; FTAA and 82; Mexico, trade negotiations with 73 – 5, 97, 104, 108, 128 – 9; Ministry of Economy and 71; NGOs and 103; Ouro Preto Protocol and 70; tariffs and, elimination of 137; trade negotiations through 80 comparative advantage comparative trade politics 29, 127 – 48; in countries 136 – 48; governments 139 – 42; societal groups 142 – 7; trade negotiations, comparing 127 – 36; trade politics 136 – 9; trade politics, patterns of 147 – 8 competitive strategy 27 – 8, 31 comprehending trade politics 11 – 13 compromise state 55 Concertación de Partidos por la Democracia 60 – 2, 97, 141 – 2 Concha, Andrés 109 Confederation for Production and Commerce (CPC) 56 – 62, 99, 101 – 2, 108, 110, 142 – 3; International Commission on Foreign Trade, establishment of 109; MERCOSUR 142 – 3 Confederation of Private Sector Employees and the Workers’ United Front (FUT) 60 Constitution on 1980 61 Consultative Economic Commission 45 contours of trade politics 3 – 14; Argentina 10 – 11; Chile 10 – 11; comprehending 11 – 13; defined and purpose of 5 – 7; Latin America 9 – 10; trade agenda 7 – 9 contratados 74 contributions on trade politics 163 – 4 CONUPIA see National Confederation for Medium Sized, Small and Micro Industry, Service and Craftsmen of Chile (CONUPIA) Convertibility Plan 50 – 1 cooperative capitalism 55 Coordinating Association for Free Businessmen’s Institutions (ACIEL) 47 Coordinator for Food and Beverage Industries (COPAL) 72 – 3, 75, 82, 85, 142 COPAL see Coordinator for Food and Beverage Industries (COPAL) 176 Index copper industry 56 Copper Workers Confederation 60 CORFO see Chilean Economic Development Agency (CORFO) Corporación Participa 111 – 13, 133 Corporate Responsibility 132 Corporation of Studies for Latin America (CIEPLAN) 62 – 3 Council on Tariffs 56 CPC see Confederation for Production and Commerce (CPC) CPPDE see Public-Private Council for Export Development (CPPDE) CRA 53 CSOs see civil society organizations (CSOs) CTA see Argentine Workers’ Central Union (CTA) Cuba 3, 80, 83, 108 CUT see Unitary Workers Confederation (CUT) da Silva, Lula deindustrialization 48 De la Rua, Fernando 52 de Mendiguren, José Ignacio 53 democracy: in Argentina 43, 64; in Chile 64; ISI strategy and 46; limited 46; state-society relations 49 – 52 Democratic Alliance (AD) 60 democratic governance 56 – 63 Department of Foreign Trade 109 deregulation 24 Diálogo 2000 83, 84 dictatorship, market-oriented 57 – 60 Diplomatic School 80 DIRECON see General Directorate for International Economic Relations (DIRECON) Direction for the Promotion of Exports (ProChile) 58 – 9, 109, 110, 115, 120, 146 disilluion 108 – 13 distributional implications of trade liberalization 24 divergenece 10 – 11 diversity 10 – 11 divide and rule policy 75 Doha Development Round 89 – 90 Doha Ministerial Conference 92 Doha Round 8, 90 – 3, 118 – 19, 134, 136, 141, 143; WTO, negotiations with 145, 147 – 8, 156 – 7 domestic industry 44 domestic sites of knowledge production 145 Dominican Republic-Central America FTA (CAFTA-DR) 80 ‘driver’s seat’ and role of government/ governance 152 – 3 Duhalde, Eduardo 52 – 3 ECA see Economic Complementation Agreement (ECA) ECLAC see Economic Commission for Latin America and the Caribbean (ECLAC) economic collapse of 2001 – 2002 137 Economic Commission for Latin America and the Caribbean (ECLAC) 10 Economic Complementation Agreement (ECA) 73 – 4, 98, 100, 108; in Mexico 108 economic government/governance 50 economic policy 46, 53 economic trade liberalization 35 economy, international political 155 environmental NGOs 112, 144 ETUC see European Trade Union Confederation (ETUC) EU see European Union (EU) EU-Chile agreement 115 EU-Latin American Summit in Rio de Janeiro 113 EU-MERCOSUR negotiations 84 – 7 European Trade Union Confederation (ETUC) 86 European Union (EU) 5; Chile, trade negotiations with 108; Free Trade Area of the Americas (FTAA) and 79, 87, 133; Great Recession in 137; MERCOSUR 84 – 7, 113 – 16, 146; North-South trade negotiations with 113 – 16; trade agreements with 107; trade negotiations with 71, 76, 83 European Union-Chile Negotiations Committee 115 exceptionalism 11 extensive institutional architecture 29 extranjerización 48, 51 FAA see Argentine Agrarian Federation FDI see foreign direct investment (FDI) Fedefrutas see Federation of Chilean Fruit Growers (Fedefrutas) Federation of Chilean Fruit Growers (Fedefrutas) 104 Fifth Ministerial Meeting www.ebook3000.com Index 177 financial and balance of payments crisis in 1980 – 1981 48 – 9 financial crisis in Chile 59 financial obligations of Argentina, default in 52 First Summit of the People 111 Florence Agreement 113 FOCO see Citizens’ Justice and Human Rights Forum (FOCO) foreign direct investment (FDI) 24, 47; in Chile 56, 100 Foreign Relations Ministry 84 foreign trade flows 10 Framework Cooperation Agreement 113 free-floating exchange rate 52 – 3 free-market society, constructing 60 – 3 free-market strategy 55, 57 free trade: in Chile 138; FTA and 145; international trade and 9; polices on 8; rush to 18 Free Trade Area of the Americas (FTAA) 3, 71, 159; ACJR, opposition to 111 – 12; Buenos Aires, rejection of 83; challenges of 82, 137; collapse of 80; CSOs and 82, 146; CUT and 112; Frei administration, involvement in 108; initiatives of 111; launching of 81 – 3, 108, 110 – 11, 130, 145; MERCOSUR and 82; NGOs and 82; North-South negotiations 35, 79; private sector support for 110; public debate on 83; rejection of 83; social mobilization of 112; SRA and 81; trade agenda of 80 – 1; trade negotiations with 76; UIA and 81; United States, agreement with 110; veto of Frei, Eduardo 56, 100 Frei administration 108 Frondizi, Arturo 46 Frutos, Duarte FTA 87, 104; Chile and, trade negotiations with 114; China and, trade negotiations with 103; expansion of 128; free trade and 145; with Mexico 108; Ministry of Finance, prioritization of 98; rejection of 112, 116; trade liberalization and 146; trade negotiations with 76; trade unions oppositions to 133; with United States 98, 107 – 8; WTO and 160 FTAA see Free Trade Area of the Americas (FTAA) FTAA la carte’ 80 FTAA light 80 FTAA vs EU 76 Furche, Carlos 105 FUT see Confederation of Private Sector Employees and the Workers’ United Front (FUT) GATT see General Agreement on Tariffs and Trade (GATT) GDP see gross domestic product (GDP) General Agreement on Tariffs and Trade (GATT) 7, 9, 97 General Confederation of Labour (CGT) 45 – 6, 49, 73, 83, 87, 93, 133; populism to neoliberalism, shift from 51 General Directorate for International Economic Relations (DIRECON) 98 – 9, 101, 104 – 5, 108 – 11, 113 – 19, 134, 140 – 1; ODEPA and 134 – 5; WTO and 119 – 20 General Economic Confederation (CGE) 45, 47 – 8, 51 Geneva 7, 118, 136 Giavarini, Adalberto Rodríguez 83 globalization 11 – 12, 155 Global System of Trade Preferences 76 government/governance 139 – 42; business and, dynamics of connections between 24; democratic 57 – 63; ‘driver’s seat’ and role of 152 – 3; economic 50; informational credentials of 22; institutional supply structure of 22 – 3; limited institutional architecture of 22; national 11 – 12; political opportunity structure of 22 – 3; regional and multilateral liberalization of 24; societal actors in 22; trade liberalization reforms by 49 Great Britain 48 Great Depression 7, 44 gremialista movement 56 – 7 gross domestic product (GDP) 46, 52, 57 Group of 11 49 Guadagni, Alieto 74 Hemispheric Social Alliance (HSA) 83, 86, 111 heterogeneous interests 44 – 5 HSA see Hemispheric Social Alliance (HSA) IADB see Inter-American Development Bank (IADB) IAPI see Argentine Institute for Trade Promotion (IAPI) idealist interests 27 – 8 178 Index ideal types of trade politics 28 – 31; comparative trade politics 29; pressured trade politics 29 – 30; resistant trade politics 31; subordinated trade politics 30 ideas 26, 31 IMF see International Monetary Fund (IMF) import liberalization and stabilization 57 – 8 import-substituting industrialization (ISI) strategy 9, 164; in Argentina 44 – 6; in Chile 54 – 5; democracy and 46; economic policy and 46; free-market strategy, shift from 57; old-style trade politics of 10; shortfalls of 47 – 8 INAI see International Negotiation on Agriculture Institute (INAI) India, trade negotiations with 128; SouthSouth negotiations 35, 70, 76 – 7 Industrial Bank 44 Industrial Chamber of Argentine Pharmaceutical Laboratories (CILFA) 81 – 2, 85 industrialization: CGE and 45; Consultative Economic Commission and 45; domestic 44; Latin America 44 – 5; of state-society relations 44 – 6; UIA, interests in 91 information 22, 31 Institute of Agrarian Studies (INTAGRO) 56 institutional architecture: characteristics of 23; extensive 29; of government/ governance 22 – 3; limited 30 – 1; trade policy and 153 INTAGRO see Institute of Agrarian Studies (INTAGRO) intellectual property rights (IPRs) 7, 24, 101; abandonment of 10; free trade policies, impact on 8; regulation of 128; trade negotiations and 155 Inter-American Development Bank (IADB) 74, 76 Inter-American Regional Workers’ Organization (ORIT) 86, 111 – 12 interests: business 45 – 6; heterogeneous 44 – 5; idealist 27 – 8; material 26 – 8; trade negotiations and 27; Weber’s definition of 26 Interior 50 Inter-Ministerial Commission of International Trade (CICI) 81 Inter-Ministerial Committee on International Economic Negotiations 101 International Commission on Foreign Trade 109 International Confederation of Free Trade Unions (CIOSL) 86 International Economic Relations 74, 76 International Monetary Fund (IMF): Argentina, member of 46, 52; stabilization program implemented by 58 International Negotiation on Agriculture Institute (INAI) 91 – 2, 135, 141, 143 international political economy 155 international trade: Argentina 44; Chile 44, 141; Executive branch role in policy on 21; free trade and 9; welfare implications of 18 International Trade Union Confederation (ITUC) 93, 120 Interregional Framework Cooperation Agreement 84 interregionalism 84 – 7 IPRs see intellectual property rights (IPRs) IRAM see Argentine Institute of Standardization and Certification (IRAM) ISEN see National Foreign Service Institute (ISEN) ISI see import-substituting industrialization (ISI) strategy ITUC see International Trade Union Confederation (ITUC) Joint Administration Committee 76 Kirchner, Néstor 3, 53 – 4, 137 Kirchnerism 53 – 4 knowledge politics 64 labour organizations in Argentina 47 LAFTA see Latin American Free Trade Association (LAFTA) Lagos, Ricardo 62, 103, 108, 113 Lagos administration 115, 141 LAIA see Latin American Integration Association (LAIA) latifundistas 54 Latin America: domestic industry, emergence of 44; industrialization in 44 – 5; market reform in 57; Peronism in 44 – 6, 50; in 1990’s 9 – 10; urban working class in, development of www.ebook3000.com Index 179 44; see also Argentina; Chile; Latin America, trade politics in Latin America, trade politics in 43 – 64, 63 – 4, 151 – 64; Argentina 43 – 54; Chile 54 – 63; comparisons of 63 – 4; continuity and change in 159 – 62; contributions 163 – 4; domestic and international dynamics 155 – 9; policy creating 151 – 5; research agenda 163 – 4; see also Argentina, trade politics in; Chile, trade politics in; Latin America Latin American Free Trade Association (LAFTA) 46, 72, 87; Advisory Commission for 56; Argentina, creation of 46; Brazil 46; Chile 46 Latin American Integration Association (LAIA) 72, 87, 98 – 100 Latin American Petrochemical and Chemical Association (APLA) 72, 131 limited democracy 46 limited institutional architecture 22, 30 – 1 Mar del Plata, Argentina marketing opening 33 market-oriented dictatorship 57 – 60 market reform: Chile 54; extranjerización 51; Latin America 57; state-society relations 49 – 52; trade liberalization and 52 Marrakesh agreement 4, 90 material interests 26 – 8 MEBF see MERCOSUR-EU Business Forum (MEBF) Mendoza 72 Menem, Carlos 50, 64, 71 Menem administration 71 Menemism 50 MERCOSUR see Common Market of the South (MERCOSUR) MERCOSUR-EU Business Forum (MEBF) 86 MERCOSUR vs FTAA 76 Mexican-Argentine Group 75 Mexican Secretariat of Commerce and Industrial Promotion (SECOFI) 101 Mexico: ECA 108; FTA with 108; MERCOSUR, trade negotiations with 73 – 5, 97, 104, 108, 128 – 9; South-South negotiations 35, 70, 73 – 5; Uruguay, free trade agreement between 73 – 4 Miami military control of UIA 48 Minimum Wage Council 53 Ministerial Conference in Seattle III 90 Ministry General Secretariat of the Presidency (SEGPRES) 101 Ministry of Agriculture 101, 102 Ministry of Economy 59 – 61, 71, 74, 76 – 7, 80 – 1, 90, 98, 139 – 40; MERCOSUR and 71 Ministry of Finance 98, 114 Ministry of Foreign Affairs 98, 103, 111, 139 – 41 Ministry of Foreign Relations 58 – 9, 71, 74, 75 – 7, 80 – 3, 87 Ministry of Production 53 mobilization of NGOs 26, 75 moderating mediator 54 – 5 Montevideo 84 multilateral trade liberalization 7 – 8 multilateral trade negotiations under WTO 89 – 93, 118 – 20 NAFTA see North American Free Trade Agreement (NAFTA) NAMA see Non-Agricultural Market Access (NAMA) 11 National Agriculture Society (SNA) 54, 56, 59 – 60, 99, 101 – 2, 104, 110, 114 – 15, 120, 134, 143 National Chamber of Commerce (CNC) 54, 102 National Commission of Foreign Trade (CNCE) 60, 90, 139 – 40 National Confederation for Medium Sized, Small and Micro Industry, Service and Craftsmen of Chile (CONUPIA) 104 – 5 National Corporation for Exporters (CNE) 102, 110, 114, 132 National Council for Agriculture Development 102 National Council on International Trade (CNCI) 77, 81, 83 National Fishing Society (SONAPESCA) 110, 114 – 15 National Foreign Service Institute (ISEN) 80 National Forum for Productive Development 61 national governance 11 – 12 national interest, conceptions of 19 National Mining Society (SONAMI) 54, 59, 104 National Trade Union Coordinating Body (CNS) 60 180 Index National Union of Workers (UNT) 105 – 6, 120, 130 negotiations: through MERCOSUR 80; with trade unions 92 – 3; see also trade negotiations neoliberalism 51 – 2 new regionalism 9 – 10, 138 NGOs see non-governmental organizations (NGOs) ‘No al ALCA’ 83 Non-Agricultural Market Access (NAMA) 11, 91 non-governmental organizations (NGOs) 6, 73; Civil Society Consultative Council and 77; CSOs and 148, 155; environmental 112, 144; FTAA and 82; MERCOSUR and 103; mobilization of 26, 75; trade liberalization, impact of 92; trade policy and 25; trade unions and 120, 129, 132 – 3, 145 – 6 Non-Tariff Barriers (NTBs) 84 North American Free Trade Agreement (NAFTA) 133; Chile, incorporation into 98, 107, 133; establishment of North-South trade negotiations 79 – 87, 107 – 16; with EU 113 – 16; EU-MERCOSUR 84 – 7; FTAA 80 – 4, 108 – 13 NTBs see Non-Tariff Barriers (NTBs) OAS see Organization of American States (OAS) ODEPA see Agrarian Research and Policy Office (ODEPA) ODEPLAN see Office of National Planning (ODEPLAN) Office of National Planning (ODEPLAN) 58 old-style trade politics of ISI strategy 10 Olivares, Diego 105, 106, 111 – 12, 115 – 16 Olson’s theory of collective action 25 – 6 open regionalism 9 – 10 Organization of American States (OAS) 136 ORIT see Inter-American Regional Workers’ Organization (ORIT) Ouro Preto Protocol 70 Pacific Alliance 162 Paraguay 83 Peace and Justice Service of Argentina (SERPAJ) 83, 145 Peña, Félix 81, 139 Peronism 44 – 6; Argentina 44 – 6, 50; General Confederation of Labour (CGT) and 45 – 6; industrial policy and 44; Latin America 44 – 6, 50 persona-grama 71, 139 Peru 80 pesification 52 – 3 Pey, Coral 111 PICE see Programme for Economic Integration and Cooperation (PICE) Pinochet, Augusto 54, 58 – 60, 64, 97 Piqueteros 53 Poder Ciudadano 82, 133 policy creates politics argument 4, 34, 151 – 5 policymaking, black box of 19 political economy 43 political opportunity structure of government/governance 22 – 3 political polarization 56 – 7 politicization of state-society relations 44 – 6 politics, knowledge 64; see also trade politics Popular Front 55 Popular Unity (UP) 57, 123, 158 populism to neoliberalism 51 Post-Convertibility economic policy 53 pragmatic approach to trade liberalization 59 preferential trade agreement (PTA) 76 Presidential Guidelines for Citizen Participation 103, 115 pressured trade politics 29 – 30 private sector support for FTAA 110 Process of National Reorganization 48 ProChile see Direction for the Promotion of Exports (ProChile) Production, Investment and Growth Council 50 Productive Group 53 productive revolution 50 Productivity Pact 51 Programme for Economic Integration and Cooperation (PICE) 72 – 3, 139 PTA see preferential trade agreement (PTA) public debate on FTAA 83 Public-Private Council for Export Development (CPPDE) 104 radical economic liberalization 58 Radicals 60 Redrado, Martín 76 – 7 regionalism, open 9 – 10 www.ebook3000.com Index 181 regionalization 155 research agenda on trade politics 163 – 4 resistant trade politics 31 revolution of the managers 56 Rio, EU-Latin American Summit in 84 – 5, 113, 133 Rioseco, Alejandro Foxley 98 Rosario Board of Trade 91 rush to free trade 18 San Martín Palace 84 Santiago Chamber of Commerce (CCS) 110 SECOFI see Mexican Secretariat of Commerce and Industrial Promotion (SECOFI) Second Summit of the Americas 80, 112 Second World War 7, Secretariat of Agriculture 74, 90, 91 Secretariat of Industry 74 Secretariat of Trade 74, 76, 91 SEGPRES see Ministry General Secretariat of the Presidency (SEGPRES) SERPAJ see Peace and Justice Service of Argentina (SERPAJ) small- and medium-sized enterprises (SMEs) 51, 77, 83, 104 – 5, 157 SMEs see small- and medium-sized enterprises (SMEs) Smith, Adam 18 SNA see National Agriculture Society (SNA) Social and Economic Conference (CES) 49 Social and Economic Council (CES) 59 – 60 social demand 25 – 6 Social Democrats 60 Socialist Party 60 social justice 50 social mobilization of FTAA 112 Social Pact 47 – 8 societal actors 23 – 8 societal actors in government/governance 22 societal groups 142 – 7 society-centred approaches to trade 18 – 20 Society for Promoting Manufacturing (SOFOFA) 54, 57 – 60, 62, 98 – 9, 101 – 2, 104 – 5, 108 – 10, 114, 119, 142 – 4; FTA and 108 – 9; trade liberalization and 58; UIA and 135 SOFOFA see Society for Promoting Manufacturing (SOFOFA) SONAMI see National Mining Society (SONAMI) SONAPESCA see National Fishing Society (SONAPESCA) Southern Cone 11, 130, 133, 137 Southern Cone Coordinator of Central Trade Unions (CCSCS) 73, 86 South in regional trade negotiations 70 – 7; Chile 70 – 3; India 76 – 7; Mexico 73 – 5; see also trade negotiations South-South regional trade negotiations, barrio and 97 – 106; China 103 – 6; MERCOSUR 100 – 3; Mexico 97 – 100 SRA see Argentine Rural Society (SRA) Stancanelli, Néstor 90 – 1 state actors 20 – 3 state and society in trade politics 20 State Bank 56 state-centred approaches to trade 18 – 20 state-led industrialization in Argentina 44 state-led industrialization in Chile 55 state-society relations: changing, bringing the state back in 52 – 4; democracy 49 – 52; under ISI model 54 – 5; politicization of 44 – 6 structural differences 10 – 11 subordinated trade politics 30 Summit of the Americas 3, 80, 83 – 4, 111 – 13; in Quebec III 83, 111; Summit of Quebec 80 Table of Social Dialogue 62 tariffs 59, 60, 137 Techint 75, 81 tenacious nation-state centrism 19 Third WTO Ministerial Conference 84 Throw everyone out slogan 52 TPA see Trade Promotion Authority (TPA) trade: agreements 170 – 1; decision making 74; international 5; reform 26 – 7; society-centred approaches to 18 – 20; state-centred approaches to 18 – 20 trade agenda: contours of trade politics 7 – 9; of CSOs 154; depth of 159; domestic impact of new 24; of FTAA 80 – 1; trade policy and 33 – 4; transformations of 8 – 9 trade liberalization 9; agricultural 118; in Argentina 138; Chile, and implementation in 100; deregulation 182 Index and 24; distributional implications of 24; economic 35; FTA and 146; government/governance, reforms by 49; marketing opening and 33; market reform and 52; multilateral 7 – 8; NGOs, impact of 92; pragmatic approach to 59; trade reform and 26 – 7; unilateral 34 – 5, 89, 137 trade negotiations 127 – 36; Argentina 71; Chile 70 – 3; China 103 – 6, 128; domestic regulations on 34; EU 71, 76, 79, 84 – 7; FTA 76; FTAA 76; GATT 9, 97; India 76 – 7, 128; interests and 27; IPRs and 155; MERCOSUR 100 – 3; Mexico 73 – 5, 97 – 100; multilateral negotiations under WTO 133 – 6; North-South 33, 79 – 87, 107 – 16, 130 – 3; South-South 33, 127 – 30; systematic comparison of 35 trade policy: in Argentina 137; in Chile 97; classical approaches to 23 – 4; collective actors involved in 24 – 5; CSOs and 25; design and implementation of 139; determinants of 5; instability and 34 – 5; institutional architecture and 153; neoliberalism and 164; NGOs and 25; non-state actors’ role in 25; societal actors’ role in 25; vicissitudes in 34 – 5 trade politics 3 – 14, 136 – 9; accounting for 31 – 2; in Argentina 70 – 94; in Chile 97 – 121; in comparative perspective 127 – 48; contours of 3 – 14; cooperative 29; defined and purpose of 5 – 7; domestic and international dynamics 155 – 9; ideal types of 28 – 31; ideas, influence on 27; in international negotiations 31 – 5; in Latin America 43 – 64, 151 – 64; nature of 43; patterns of 147 – 8; pressured 29 – 30; resistant 31; societal actors involved in 5; society-centred approaches to 5 – 6; in Southern Cone 34; static process of 11; subordinated pattern of 30; unravelling 18 – 36 Trade Promotion Authority (TPA) 107 – 8 Trade-Related Investment Measures (TRIMs) 89 Trade Union Conference on the Social Dimension of MERCOSUR and the European Union 86 trade unions: Bilateral Council for Trade and Investment, part of 99 – 100; Brazil 83; Chile 83; China, negotiations with 105 – 6; and civil society activism 145; CSOs 129, 131, 144 – 6, 156 – 7; Cuba 83; FTA, oppositions to 133; MERCOSUR and 103; mobilization of 75; NGOs 120, 129, 132 – 3, 145 – 6; Paraguay 83; in Uruguay 83 transformational coalitions 24 TRIMs see Trade-Related Investment Measures (TRIMs) TRIPs see Agreement on the Trade Related Aspects of Intellectual Property Rights (TRIPs) UIA see Argentine Industrial Union (UIA) UNASUR see Union of South American Nations (UNASUR) uncertainty 26 – 7 UNDP see United Nations Development Programme (UNDP) unilateral trade liberalization 34 – 5, 89, 137 Union of South American Nations (UNASUR) 162 Unitary Workers Confederation (CUT) 57, 60, 62, 101, 105, 111 – 12, 115 – 16, 130, 133, 145 – 6; FTAA and 112 United Nations Development Programme (UNDP) 74, 76 United States 5; agricultural sector in 82; FTAA, agreement with 110; FTA with 98, 107 – 8; Great Recession in 137; trade agreements with 107 United States-Chile Free Trade Coalition 111 United States Trade Representative (USTR) 101 unravelling trade politics 18 – 36; ideal types of trade politics 28 – 31; in international negotiations 31 – 5; societal actors 23 – 8; state actors, their needs 20 – 3; state and society in 20 UNT see National Union of Workers (UNT) UP see Popular Unity (UP) UR see Uruguay Round (UR) urban working class 44 Uruguay: Chamber of the Chemical and Petrochemical Industries and 72; LAFTA in 46; Mexico, free trade agreement between 73 – 4; trade unions in 83 Uruguay Round (UR) 4, 82, 90 – 1, 118 USTR see United States Trade Representative (USTR) www.ebook3000.com Index 183 Vázquez, Tabaré Vicens, Andrés 109 VI Trade Ministerial Meeting 83 Washington Consensus 9 – 10, 159 – 60 WB see World Bank (WB) window dressing 50, 83, 143 wise council 114 World Bank (WB) 9 – 10; Argentina, member of 46; Ministry of Economy, funded by 90 World Trade Organization (WTO) 3; Agreement on Agriculture of 89 – 90; Argentina, participation in 70; completion of 7; creation of 4, 134; CSOs and 136; DIRECON and 119 – 20; Doha Round, negotiations with 145, 147 – 8, 156 – 7; FTAA and 80, 139 – 40; FTA and 160; GATT and 7; IPRs and 82; multilateral trade negotiations under 89 – 93, 118 – 20; North-South trade negotiations and 33 – 4; regulatory obligations of 33; trade agenda of 93, 134; trade negotiations with 76, 83, 135, 155 WTO see World Trade Organization (WTO) WTO Agreement on Agriculture 134 WTO Ministerial Conference 84, 91 – 3, 148 WTO Safeguards Committee 118 Zero Deficit Plan 52 .. .Negotiating Trade Liberalization in Argentina and Chile “This volume examines the interaction between domestic and international negotiations in trade politics With its focus on Argentina and. .. Change, and State Autonomy Jeffrey G Seward 17 Negotiating Trade Liberalization in Argentina and Chile When Policy Creates Politics Andrea C Bianculli www.ebook3000.com Negotiating Trade Liberalization. .. ideal types of trade politics Selected trade agreements in Argentina and Chile South-South trade negotiations in Argentina North-South trade negotiations in Argentina Multilateral trade negotiations