Search

Begin New Search Topic Trade Political Geography United States of America

41. The Economic Impact of China PNTR Repeal

Author:
David Schockenhoff and Michael Kleiman
Publication Date:
11-2023
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
As scepticism towards China is rising among policymakers, businesses grow more concerned about the potential economic fallout from an escalation in US-China tariff policy. Oxford Economics was commissioned by the US-China Business Council (USCBC) to help inform the policymaking process by examining two scenarios that could materialize if China’s Permanent Normalized Trade Relations (PNTR) status was revoked – including the increase of US tariffs on Chinese goods to column 2 rates as well as a Chinese retaliation imposing pre-WTO rates on US goods. Our analysis incorporates state-of-the art trade and economic models, including the Oxford Economics GEM, and finds that the US could lose up to $1.9trn in output over the five-year period following a China PNTR repeal. This is our third study for USCBC after examining the impact of the US-China relationship and associated scenarios in two previous reports (2017 and 2021).
Topic:
Economics, Politics, Bilateral Relations, Regulation, Tariffs, Trade, Supply Chains, Policymaking, Decoupling, and Goods and Services
Political Geography:
China, Asia, North America, and United States of America

42. The Comeback of Industrial Policy. The Next Geopolitical Great Game

Author:
Alessandro Gili, Davide Tentori, and Paola Magri
Publication Date:
12-2023
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
Industrial policies are the key element underlying today’s geopolitical scramble and a pillar of national security. Reacting to Western weaknesses and bottlenecks in the global supply chains, highlighted by multiple shocks such as the pandemic, the war in Ukraine, and the recent Israel-Hamas war, the US in first place and the EU later have started to introduce new industrial legislation aimed at making up for lost ground with respect to other industrial powerhouses, such as China. Besides being policy tools to accelerate the green and digital transitions, however, the US Inflation Reduction Act and the Net Zero Industry Act, as well as the US and the EU Chips Acts, entail subsidies, local content requirements and export controls targeted at strengthening the domestic industrial base for critical technologies, fostering strategic autonomy and de-risking from excessive foreign dependencies. This race poses risks for the weaponisation of industrial policies and fragmentation of international trade and also potentially jeopardises technological development. How can we strike a balance between economic security and efficiency? Which sectors are the most critical and which ones are the leading global powers pursuing? What will the consequences be for global value chains and international trade? Is it possible to reach an agreement on rules for a new level playing field to prevent economic competition turning into economic warfare?
Topic:
Development, Industrial Policy, National Security, Science and Technology, European Union, Geopolitics, Trade, and Supply Chains
Political Geography:
China, Europe, and United States of America

43. Trade and Investment Are Not a Balancing Act

Author:
Norbert Michel
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The trade deficit is the amount by which the value of a country’s imports exceeds the value of its exports during a given period, such as one calendar year or quarter. It is a commonly misunderstood concept that inspires harmful economic policies, such as proposals that a country “balance” its imports and exports by taxing international capital flows. Supporters of this policy hope to shrink the trade deficit (i.e., to balance imports and exports) by taxing the capital surplus that goes along with a trade deficit in the balance-of-payments framework. In the United States, senators Tammy Baldwin (D‑WI) and Josh Hawley (R‑MO) authored a 2019 bill to do this and, though it died in the Senate Banking Committee, similar legislation may appear in the future. This kind of policy is highly flawed on theoretical, empirical, and practical grounds. For starters, trade deficits and capital surpluses are merely part of a national accounting system that includes multiple arbitrarily assigned categories. In fact, even the concept of balancing in the national accounting system is not as straightforward as supporters of balancing trade flows suggest. The evidence demonstrates that there is no clear negative relationship between a trade imbalance and a country’s optimal economic performance, especially regarding employment in manufacturing, which is a common concern among politicians. At best, taxing international capital flows would fail to change the incentives that drive US consumers’ high demand for imports. At worst, it would cause a global economic recession that impoverishes millions of people and makes Americans poorer.
Topic:
Economics, Investment, Trade, and Deficit
Political Geography:
Global Focus and United States of America

44. The Anti-Circumvention Instrument: Another Roadblock on the Investment Development Path?

Author:
Weihuan Zhou and Victor Crochet
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
Companies from emerging economies, and China in particular, have started internationalizing their production operations. In doing so, they are following the same path as that taken by American, European and East Asian corporations before them, by setting up factories in third countries to serve their export markets from closer locations and produce more efficiently. Thus, it is no longer only developed countries’ multinationals which are moving their operations to developing countries, but emerging market companies that are increasingly engaging in production abroad. This phenomenon is having beneficial effects in countries where these companies invest and might help them start their own industrialization process. Yet, it has attracted the ire of developed countries, in particular the European Union. They are now targeting these downstream production plants abroad by using the so-called anti-circumvention instrument, resulting in trade defence duties imposed on the parent companies being extended to their foreign subsidiaries. This application of the anti-circumvention instrument departs from its historic rationale and might hinder the development of countries in need of foreign investment. Therefore, affected governments should consider taking international legal action to bring developed countries to the negotiating table to put a halt to this abuse of the anti-circumvention instrument.
Topic:
Development, Industrial Policy, Investment, Trade, Internationalization, Production, Emerging Economies, and Anti-Circumvention Instrument
Political Geography:
China, Europe, Global Focus, and United States of America

45. Trade Beyond Neoliberalism: Concluding a Global Arrangement on Sustainable Steel and Aluminum

Author:
Trevor Sutton and Mike Williams
Publication Date:
12-2023
Content Type:
Special Report
Institution:
Center for American Progress - CAP
Abstract:
A proposed trade deal with the European Union offers a historic opportunity to align the global economy with climate action and the interests of workers—but only if Washington and Brussels can put aside their differences.
Topic:
Climate Change, Treaties and Agreements, European Union, Neoliberalism, Trade, Sustainability, and Metals
Political Geography:
Europe and United States of America

46. The U.S.-China Rivalry is Changing International Supply Chains

Author:
Piotr Dzierżanowski
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
While the U.S.-China economic rivalry has been intensifying for years and is closely linked to the deterioration in political relations, the sudden collapse of supply chains caused by the COVID-19 pandemic has highlighted the increased role of security considerations in economic relations and the interdependencies between China and developed countries. The American actions to reduce those links will have long-term consequences for U.S.-China relations and the economies of other countries.
Topic:
Security, Economics, Trade, Rivalry, and Supply Chains
Political Geography:
China and United States of America

47. Implications of a Melting Arctic

Author:
Sascha Glaeser
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
Melting ice is making the Arctic more accessible, which in turn may affect three key issues in the region—militarization, maritime trade, and natural resource development. U.S. security interests in the Arctic remain deterring an attack on the United States and NATO allies and ensuring the lawful use of Arctic waters. The United States can secure both at minimum cost and risk. Greater accessibility does not increase threats emanating from the Arctic, so the United States does not need to do more militarily to ensure its security. Militarization absent threats could lead to a destabilizing security dilemma. Trans-Arctic maritime trade routes and natural resource development present potential economic opportunities; however, both still face significant challenges that limit their near-term viability. The United States should be vigilant to Russian and Chinese activity in the Arctic and avoid overreacting or reflexively mirroring their behavior. A U.S. Arctic strategy built on the reality that the United States enjoys a strong conventional and nuclear deterrent, a robust network of Arctic allies, and favorable geography, is the best avenue to protect U.S. interests and keep the Arctic at peace.
Topic:
Security, Climate Change, Natural Resources, Trade, and Militarization
Political Geography:
Russia, China, Arctic, and United States of America

48. Restarting the Post-Pandemic Indian Economy

Author:
Aparna Pande, Eric B. Brown, and Thomas J. Duesterberg
Publication Date:
07-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This report is a result of a Takshashila-Hudson Roundtable Series that brought together experts, policymakers, and academics from India and the United States in November and December 2021 to discuss opportunities for the two nation-states to collaborate in a fast-changing global order. This section summarizes key recommendations for policymakers based on deliberations at the Takshashila-Hudson roundtable series Restarting the Post-Pandemic Indian Economy. The recommendations are divided into four themes for India-US Collaboration: Trade, Investments, Technology, and Human Capital Movement.
Topic:
Science and Technology, Immigration, Economy, Investment, Human Capital, Trade, and Supply Chains
Political Geography:
South Asia, India, North America, and United States of America

49. Operationalizing the Quad

Author:
Lisa Curtis, Jacob Stokes, Joshua Fitt, and Andrew J. Adams
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
This paper assesses Quad activities and the progress the group has made toward its stated objective of promoting a free and open Indo-Pacific. It also provides policy recommendations for strengthening Quad cooperation across the six identified priority areas (vaccines, critical and emerging technologies, climate change, infrastructure, space, and cybersecurity) as well as on trade and economics and security and defense.
Topic:
Security, Defense Policy, International Cooperation, Science and Technology, Economy, Trade, and Quad Alliance
Political Geography:
Japan, India, Australia, United States of America, and Indo-Pacific

50. Governing the Global Commons: Challenges and Opportunities for US-Japan Cooperation

Author:
Kristi Govella, John Bradford, Kyoko Hatakeyama, Saadia M. Pekkanen, Setsuko Aoki, James Lewis, and Motohiro Tsuchiya
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
The global commons—domains beyond the sovereign jurisdiction of any single state but to which all states have access—are essential to the stability and prosperity of the international order. In addition to the high seas, outer space, the atmosphere, and Antarctica, which are defined as global commons by international law, analysts have also suggested that other domains such as cyberspace may also qualify as potential commons. These domains provide essential public goods such as trade routes, transportation and communication networks, fish stocks, satellite imagery, global positioning, and e-commerce infrastructure that benefit countries around the world. To successfully manage the resources of the global commons and ensure open access to their spaces, effective governance structures must exist to accommodate and integrate the interests and responsibilities of state and non-state actors. Consequently, states have tried to come to agreements in each domain about how to enable broad access, avoid conflict, and enable cooperation. Over time, these discussions have resulted in the creation for each domain of a “regime,” a set of implicit or explicit principles, norms, rules, and decision-making procedures around which actors’ expectations converge (see Box 1). These regimes can take shape in the form of international law, national law, local regulations, private standards, and institutional bodies. They differ dramatically in maturity and complexity: the governance regime of the oceans has developed over the course of centuries, while the rules and norms of cyberspace have only had a few decades to coalesce. However, all these regimes attempt to solve similar dilemmas surrounding shared access and resources.
Topic:
Foreign Policy, Science and Technology, Democracy, Economy, Trade, and Defense Cooperation
Political Geography:
East Asia, Asia, United States of America, and Indo-Pacific