Matthew McQueen

Multinational corporations in the international hotel industry

Abstract Original data are presented on the growth of foreign-based international hotel chains and their distribution by home and host countries as well as by the principal sphere of economic activity of the parent company. A feature of the paper is the analysis of the source of competitive advantage of the international hotel chains and the non-equity forms of involvement which particularly characterize the industry. These characteristics may require that a clear distinction be made between ownership of an international-class hotel and control over its operations.

The EU's Free-trade Agreements with Developing Countries: A Case of Wishful Thinking?

Since the middle of the1990s the EU has vigorously pursued a policy of replacing non– reciprocal preferences for the developing countries in the Mediterranean, Latin America and with South Africa, with bilateral free–trade agreements. This article examines the content of these agreements and the empirical evidence on their likely effects and concludes that they are ‘broad’ but ‘shallow’ agreements. The static effect are likely to be very small or negative while the potential dynamic gains are problematic, especially regarding the concept of a ‘lock in’ to trade liberalisation, unless there are greater commitments to trade related issues by both sides and especially by the EU.

Appropriate policies towards multinational hotel corporations in developing countries.

Abstract Despite the prevalence of international hotel chains in the tourism sector of developing countries, little research has been carried out on the structure of the industry, the sources of the competitive advantages of the hotel chains over indigenous hotels, reasons for the alternative forms of involvement of the hotel chains and deriving from this, their potential and actual impact on host countries. This article applies theories developed for the multinational enterprise in the manufacturing sector, to original data and observations on the international hotel industry. Given the state of the art and the limited information on the impact of MNE hotels, the paper is principally concerned with generating potentially useful hypotheses for consideration by host governments and to provide a framework for further research. Certain policy conclusions however, are drawn from the analysis, especially regarding the appropriate from of involvement by the international hotels.

ACP–EU trade cooperation after 2000: an assessment of reciprocal trade preferences

The establishment of the World Trade Organisation (WTO) in 1995 reflected and reinforced significant shifts in global orthodoxies in favour of the liberalisation of world trade, and posed problems for trading arrangements such as the Lome Conventions between the European Union (EU) and the 70 African, Caribbean and Pacific (ACP) states, which had initially been established in the very different setting of the mid-1970s. Integral to the Lome Conventions has been the principle of non-reciprocity, under which the EU offered preferential conditions for access to its markets by products originating in the ACP states, without any requirement for reciprocal concessions (other than most-favoured-nation status) by the ACP. These preferences are due to expire with the 4th Lome Convention in February 2000. Because they are non-reciprocal, these preferences cannot qualify under Article XXIV of the General Agreement on Tariffs and Trade (GATT) of 1947. Being available only to a particular group of developing countries, they are discriminatory and cannot be regarded as being covered by Part IV of the GATT, or the Enabling Clause of 1979, since these measures only sanction special, differential and preferential treatment for all developing countries. As a result of the changed climate of opinion in the World Trade Organisation (WTO), emphasising the obligation of members to bring their trade measures into conformity with WTO disciplines, the EU sought and obtained a waiver from Article I (principle of non-discrimination) for the remaining duration of the Convention, leaving open the arrangements to be put into effect after 2000. In the public discussions and consultations on a successor arrangement to Lome, the European Commission has emphasised the need for such an arrangement to be compatible with WTO requirements, so as to ensure the legal security of preferences. It is therefore envisaged that Lome preferences will be available only to the least developed countries (LLDCs), but will be generalised to all of the least developed countries, including for example Bangladesh, Bhutan, Cambodia, Lao D.R., Maldives, Nepal and Yemen, and not just to members of the ACP Group. The Commission has proposed that the non-LLDC ACP countries should be offered a series of regional and sub-regional free trade agreements. Not only would such arrangements seek to be WTO compatible, but the Commission also sees reciprocal regional agreements as stepping stones to fully liberalised trade and the integration of the developing countries into the world economy – an important development cooperation objective of the Maastricht Treaty. This article examines the Commissions proposals, and analyses the likely static and dynamic effects of a free trade agreement on the African ACP countries. It concludes by questioning whether the Commissions proposals would assist, rather than hinder, the regional integration and greater participation of these countries in the world economy.

After Lomé IV: ACP-EU trade preferences in the 21st century

The ACP countries and the EU recognise that the present non-reciprocal and discriminatory Lomé preferences must be replaced with WTO compatible arrangements. This means that the agreements conform either to the free trade area provisions of Article XXIV or to the GSP. This article sets out the key elements of ACP preferences and examines the potential advantages and disadvantages for various groups of ACP countries of possible forms of free trade areas and a ‘Lomé-equivalent’ GSP.

EU preferential market access conditions for the least developed countries

The EU has opened up its market to duty and quota free imports from the least developed countries. This article outlines the key elements of this initiative and the factors determining its likely effects and argues that the EU must also liberalise and reform its prefernntial rules of origin if the initiative is to be effective in achieving its objectives.