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Abstract
For the last two decades, academics have debated the merits of ‘regulatory competition’ versus the ‘harmonization’ of standards. This debate has now spilled over into policy circles in the United States, within Europe, and at the international level. Schematically, the discussion has become polarized around two camps. On one side stands a line of argument-especially popular in the 1970s and early 1980s-that calls for the harmonization of regulations so as to facilitate open markets, minimize non-tariff barriers between jurisdictions, and prevent competitive ness-driven, welfare-reducing underregulation (the so-called ‘race toward the bottom’) (Stewart 1977). This view served to justify a large expansion of federal legislation (and institutions) in the United States in the areas of environmental regulation, consumer protection, health and safety, and labour protection. Similar fears of trade distortions and races to the bottom led to the implementation of sweeping harmonization programmes and thus considerable expansion of centralized legislation in the European Union (Dashwood 1983).
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