How China lost its wolf pack: the fracturing of the emerging-power alliance at the WTO

Abstract

Abstract There has been considerable debate about the capacity of emerging powers, such as the BRICS (Brazil, India, China, South Africa), to act as a unified and coherent force in global economic governance. In the case of the World Trade Organization (WTO), strategic cooperation and alliance-building among the emerging powers—specifically Brazil, India and China (BIC)—were essential to counterbalancing the US and other traditional powers and enabling the rising powers to defend their interests. However, as this article shows, the BIC alliance at the WTO has collapsed. The core issue that historically united the emerging powers and provided the foundation for their alliance was ‘special and differential treatment’ (SDT) for developing countries. Yet both Brazil and India have now defected from the alliance, abandoning China. Brazil was the first to defect, switching sides and realigning itself with the US; the change in its alliance calculations reflected shifting economic priorities and a fundamental reorientation of its foreign policy strategy away from its earlier Third Worldism. India then defected when its alliance with China, once an important source of strength in WTO negotiations, instead became a liability. As a result, having lost its key allies at the WTO, China is increasingly isolated in multilateral trade negotiations.