Business Lobbying and Trade Governance: The Case of EU-China by Jappe Eckhardt

By Jappe Eckhardt

This e-book presents an cutting edge account of the way the globalization of construction and the emergence of world price chains affects on exchange personal tastes, foyer innovations and the political impact of european companies. It sheds new mild at the complicated EU-China exchange relatives.

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Extra info for Business Lobbying and Trade Governance: The Case of EU-China Relations

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As a result of these high levels of standing organizational capacity and industry concentration, the risk of free-riding is low and hence the capacity to act politically is high (Tharakan, 1991; Tharakan and Waelbroeck, 1994). Business Lobbying and EU Trade Governance 35 Counter mobilization of import-dependent firms Import-dependent firms face potential losses in revenue only after a TDI case is opened. If this happens, they may decide to act politically and lobby against the imposition of the TDI measures or make necessary economic adjustments to fend off losses.

As explained above, the key actors in EU TDI cases are import-competitors and import-dependent firms, both of which have trade preferences that correspond to their material interests. That is, import-competitors prefer measures that protect them from foreign competition, while importdependent firms favor open markets so that the products they import can enter the market duty free. Let us translate this to the context of 26 Business Lobbying and Trade Governance EU’s TDI decision-making: import-competing firms have a clear incentive to try to convince the EU decision-makers to impose TDI measures, while import-dependent firms have an incentive to lobby against them, as they will be the ones that have to pay for the trade restrictive measures if they are imposed.

There are several reasons why small groups are more easily mobilized than large ones. 15 In addition, what adds to the advantage of smaller groups over larger ones in the context of collective action is, as Terry Moe (1981: 537) has noted, that “small size encourages efficacy and bargaining . . ” So, small groups have fewer problems than larger groups in reaching an agreement on a common position with respect to the preferred policy measure as well as their most effective political strategy. Finally, small groups are overall more easily mobilized politically than larger ones because the outcomes of political action are uncertain.

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