The Conundrum of Shifting Orthodoxies: FTAs And Korea's Currency Controls
AbstractThe financial services regime, comprising the General Agreement on Trade in Services and bilateral free trade and investment agreements, reflects the 'orthodoxy' of highly liberalized and lightly regulated financial markets that has supported the ascendancy of financialization. That orthodoxy has fractured as the post-2007 global financial crisis exposed systemic instability in the financialization model and the failings of the associated regulatory regime. Yet, binding and enforceable financial services and investment agreements tie governments to that regime. Although international institutions and commentators increasingly advocate alternative strategies, such as the imposition of currency controls, governments that adopt them risk legal challenges for breaching their trade obligations. This risk is illustrated by assessing South Korea's capital controls of June 2010 against the market access, national treatment and transfers obligations, investment protections and prudential exceptions in Korea's free trade agreements with the USA and the European Union. To date, states whose firms dominate global finance have resisted high-profile calls within and outside the World Trade Organization to revisit the financial services regime. If they maintain that position, these embryonic tensions seem likely to intensify. Placing unacceptable constraints on national governments could propel the trade in financial services regime towards a crisis of legitimacy. Oxford University Press 2011, all rights reserved, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oxford University Press in its journal Journal of International Economic Law.
Volume (Year): 14 (2011)
Issue (Month): 4 (December)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://www.jiel.oupjournals.org/
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.