Manoeuvring at the Margins: Constraints Faced by Small States in Trade Negotiations

Abstract

Small states live with a paradox when it comes to trade negotiations. They depend on international trade to a greater extent than any other group of countries, yet they have the weakest voice when it comes to influencing the rules that govern trade. By dint of their small market size, small states have little to offer negotiating partners by way of market access concessions, the major currency of trade negotiations; institutional capacity is often limited so they have few trade negotiators and limited budgets; and they may be subjected to coercive threats by more powerful states to comply with their interests.These manifold challenges often produce pessimism about small states’ prospects for success in trade negotiations. Taken to the extreme such assessments can lead to the view that ‘no amount of negotiating will make a difference.’ However our research suggests a more optimistic view. Building on existing scholarly and policy literature, Manoeuvring the Margins is the first attempt to systematically analyse the perceptions of small state negotiators on the constraints they face in international trade negotiations. Based on the views of more than eighty trade negotiators from thirty small states, it shows that small developing countries can exert a decisive influence over the outcomes of trade negotiations. This briefing paper highlights some of the key findings.