Proposal for an Agenda-setting Workshop on Trade and Innovation ? The Economics, Law, and Political Economy of Asia Pacific Trade Agreements

Center For Cultural&Tech Interchg East&West, Honolulu HI

Investigators

Abstract

Economists have studied possible economic and structural effects of mega-regional trade agreements. The reduction in trade costs, harmonization of rules and standards, and structural adjustment are estimated to create large welfare gains. However, it is extremely difficult to model the impact of these new types of trade agreements on innovation and the distribution of innovation gains. Much depends on how the new international rules are written and implemented for intellectual property protection, the development and use of technical standards, government procurement, competition policy, and other forms of industrial and innovation policy. These new international benchmark standards for trade could well be far more important for the competitiveness of the US economy and its global partners than the mere reductions of border-trade costs, which economists model with the most confidence. The conference will be on emerging trends in Asia-Pacific Trade Agreements and their impact on innovation. The emergence of international corporate networks that integrate dispersed production, engineering, product development and research across geographic borders is a defining characteristic of globalization. These networks may be hampered, if the new trade rules are incompatible with global standards. The proposed workshop will address these and other issues related to the mega-regionalism trend. The focus will be on the new international benchmark standards for trade defined by the emerging Trans-Pacific Partnership agreement (TPP) and by other trade agreements, including Free Trade Agreements (FTAs) and the related TRIPSPlus and Competition provisions; plurilateral trade agreements such as the Information Technology Agreement (ITA); and debates on a possible Trade in Services Agreement (TISA). This agenda-setting workshop will examine