American Political Science Review Vol.98,No.1 the institutional context promotes the credibility of the tural policy setting,it will create new opportunities to linkage. promote agricultural liberalization. Evidence confirms that the international setting has Cross-Sector Interests.Liberalization depends on an impact on the domestic policy jurisdiction.With re- overcoming the collective action problems and institu- gard to Japanese trade negotiations,for example,Fukui tional biases at the domestic level that favor protection (1978)argues that the Foreign Ministry influence was For trade policies in general and agricultural issues in greater in the Tokyo Round,while the domestic min- particular,those who demand protection have strong istries such as the Ministry of Agriculture had more incentives and high levels of organization,while those influence in bilateral negotiations on narrow issues. who pay the costs are loosely organized taxpayers and Similarly,Japanese government decision making dur- consumers(Lindert 1991;Olson 1965).Protection poli- ing the Uruguay Round brought top officials from five cies also persist because policy makers with a vested ministries together to coordinate policies.This enabled interest in the status quo retain control over decision ministries such as the Ministry of International Trade making.The closed policy communities formed by the and Industry (MITI)that typically have no voice on ties among farm groups,agriculture ministries,and po- agricultural trade issues to play a role in agricultura litical committees in Japan,the EU,and France have policy decisions because these decisions also affected been described as forming a corporatist relationship the progress of the entire negotiation.9 (Keeler 1996;Mulgan 2000;Sheingate 2001).Using is- In the EU,the comparable question centers on which sue linkage to mobilize industry groups and to broaden officials in the Council of Ministers shape the negotia- the policy jurisdiction helps to counter both problems. tion mandate.Although the agriculture ministers meet- Cross-sector issue linkage offsets the influence of ing in the Agriculture Council dominate decision mak- farmers by engaging interests important to other pow- ing for issues directly related to CAP,broader trade erful lobby groups.Japan and the EU must offer conces- policy issues related to negotiations are likely to be ad- sions in agriculture,while both can gain much from lib- dressed by the foreign and trade ministers meeting in eralization in the industrial and service sectors.When the General Affairs Council.Member states opposing there is a credible cross-sector linkage,industry lob- agricultural reform prefer to maintain control within bies also advocate agricultural liberalization in order the Agriculture Council,while those favoring reform to achieve specific gains for industry from conclu- try to push issues into the trade committee or the Gen- sion of an overall agreement.Finding domestic allies eral Affairs Council.10 The scope of issues in the ne- to support foreign demands has been a critical fac- gotiation influences which council is likely to take the tor in explaining variation in outcomes across differ- lead role and which procedures are followed under EU ent U.S.-Japan bilateral negotiations (Mulgan 1997; treaty provisions. Schoppa 1997).The importance of the expansion of actors has also been widely commented on in stud- Institutions and Credibility.Many have pointed to ies of European and American politics(Gilligan 1997; the role of international institutions in facilitating pos- Lieber 1970).Schattschneider(1960,40)argues that, itive linkages that promote cooperation (Haas 1980; by expanding the scope of confict,losers try to "in- Keohane 1984:Martin 1992).First,as Keohane (1984. volve more and more people in the conflict until the 91)writes,more quids make it easier to reach agree- balance of forces is changed."In the case of agricul- ment in quid pro quo deal making.The institutional tural liberalization,farmers represent the entrenched context of the GATT/WTO promotes the kind of cross- interest group,and issue expansion offers one route to sector issue linkages discussed above.Equally impor- dilute their influence by forcing competition with other tant,the institutional context adds credibility to the interests. decision to link issues because it makes the deci- Not only does issue linkage lead to competition sion represent a commitment in an ongoing process among interest groups,but also among actors across of repeated negotiations.Martin(1993,129)explains jurisdictional boundaries.The framing of issues in the "Deals cut within an institution rather than outside one negotiation shifts the policy discussion from one venue gain stability because members put increased value on to another in the domestic arena.Studies of domestic their reputations for living up to agreements."The costs institutions have long emphasized the importance of of backing down from a commitment to link issues are agenda setting given the substantive impact of differ- greater because such action damages their"ability to ences between domestic actors.Baumgartner and Jones reach mutually beneficial cross-issue deals"in the fu- (1993,31)argue that"each institutional venue is home ture.The institutional context also endows the linkage to a different image of the same question."The view of with greater legitimacy by providing a common set of the problem and preference for a solution will reflect procedures and norms that justify use of the linkage the particular ministry's own bias and interests-the strategy. agriculture ministry favors farmer interests,the trade Publicizing the issue linkage as a formal agenda ac- ministry favors industry interests,and the foreign min- complishes two purposes:First,it creates a focal point istry tries to balance national interests with concern for maintaining better foreign relations.Similar differ- 9 Ministry of Foreign Affairs Official.Interview by author. ences occur across the boundaries of political commit- Cambridge,MA,18 November 1999;and MITI official.Interview tees.To the extent that the negotiation lifts decision 38mae2c3alMfyaMRol.Aeiuiersnd making outside of the corporatist ties in the agricul- Fishery.Interview by author.Bonn,20 July 1999. 157 Reproduced with permission of the copyright owner.Further reproduction prohibited without permission.Reproduced with permission of the copyright owner. Further reproduction prohibited without permission