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71. Trade Policy on the 2020 Trail: The Second Debate

Author:
William Alan Reinsch, Jack Caporal, Jonathan Robison, Beverly Lobo, and Catherine Tassin de Montaigu
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
As the race to be the Democratic nominee for president heats up, the second round of debates between the 20 candidates offered the American public a glimpse of the different candidate’s trade policies and their values around the issue. Already we are seeing some trends emerge and divisions widen within the group on trade, which remains in the background compared to hot button policy issues like health care or immigration. Nonetheless, as President Trump continues his trade wars, trade will certainly be a topic of further debate and discussion for the election.
Topic:
International Trade and Finance, Elections, Trade Policy, and Domestic Policy
Political Geography:
North America and United States of America

72. Does the United States Renegotiate Its Trade Agreements after They Are Signed?

Author:
William Alan Reinsch and Catherine Tassin de Montaigu
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
With House members pushing for changes to the United States-Mexico-Canada Agreement’s (USMCA) legal text and Speaker Nancy Pelosi’s (D-CA) directing working groups of Democratic members to work with U.S. Trade Representative (USTR) Robert Lighthizer on changes to address their concerns, the question of whether a trade agreement can be reopened and renegotiated after signing has been raised. In an effort to inform that debate with some facts, CSIS reviewed trade agreements the United States entered into after the North American Free Trade Agreement (NAFTA) and examined whether any of them were modified after signing. In brief, we concluded that of the 12 agreements reviewed, six were subject to subsequent modification. In all six cases, new side letters were signed after the agreement was signed. In three cases, the text of the agreement itself was reopened. Below are the details of our conclusions. Agreements post-NAFTA are set out in the order by which they entered into force. The “days in between” calculation refers to the number of days between the agreement’s signing and its entry into force, which in most cases was well after the date of final congressional approval. In addition, links are provided to the text of each agreement and any side letters that were added.
Topic:
Diplomacy, International Trade and Finance, and Trade Policy
Political Geography:
North America and United States of America

73. The WTO at a Crossroad

Author:
Jack Caporal, William Alan Reinsch, Madeleine Waddoups, and Catherine Tassin de Montaigu
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
The World Trade Organization (WTO) is at a crossroad. Each of WTO’s three main functions—monitoring and transparency, negotiation, and dispute settlement—is under stress. There is no single source for that stress. Some pressure flows from individual members, and other pressure flows from members’ inability to reach consensus on long-standing irritants. Pressure has also come from the rise of China and its state-driven economy, the rapid pace of technological change and its impact on the global economy, persistent economic inequality, and a recent tilt towards nationalism in the recent decade in countries that have otherwise consistently advocated for free trade. How will this essential institution navigate these challenges? In its latest report, the CSIS Scholl Chair in International Business provides a roadmap of three possible future scenarios for the WTO—continuation of status quo gridlock, U.S. withdrawal from the WTO, and successful reform—and examines what happens to the global trading order in each. In addition to the report, the Scholl Chair has assembled two resources to chart the future of the WTO: a database to track WTO reform proposals and a series of flowcharts that map future scenarios for the WTO
Topic:
International Cooperation, International Trade and Finance, Trade Policy, and WTO
Political Geography:
Global Focus

74. CSIS Brief: Beyond the Brink: Escalation and Conflict in U.S.-China Economic Relations

Author:
Matthew P. Goodman, Dylan Gerstel, and Pearl Risberg
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
As the United States and China mark their 40th anniversary of formal diplomatic relations in 2019, the world’s most important bilateral relationship is increasingly defined by mistrust, competition, and uncertainty. After four decades of deepening economic integration, the talk in Washington today is about the extent to which the two economies will “decouple” over the years ahead. In a recent study, the CSIS Simon Chair drew on several different academic disciplines to model how an economic conflict between the United States and China could escalate and eventually de-escalate. Our findings suggest that economic conflict is likely to be an enduring feature of the U.S.-China relationship for many years to come. Until perceptions of relative costs in the two countries shift, Washington and Beijing seem set on a path of continued escalation, no substantial trade deal, and at least partial decoupling of their economies.
Topic:
International Trade and Finance, Conflict, Trade Policy, and Economic Cooperation
Political Geography:
China, Asia, North America, and United States of America

75. The Sino-U.S. Phase One Trade Deal Is an Imperfect Painkiller. What's Next?

Author:
Jude Blanchette and Qiu Mingda
Publication Date:
09-2019
Content Type:
Journal Article
Journal:
The Ambassadors Review
Institution:
Council of American Ambassadors
Abstract:
After two days of intense talks with United States Trade Representative (USTR) Robert Lighthizer, Chinese Vice Premier Liu He and his delegation crossed the street to the White House on the afternoon of October 11th to meet with President Donald Trump for the first time since the negotiations collapsed in May. The visit marked the 13th round of the bilateral trade talks and concluded with an announcement from the Oval Office of a “phase one” agreement. According to President Trump, this included China’s commitment to purchase $40-50 billion of U.S. agricultural products and a pledge to strengthen its intellectual property protection regime domestically. Moreover, Beijing would make still-unknown adjustments to how it manages its currency, the renminbi. For its part, the United States delayed a scheduled tariff hike on $250 billion of Chinese goods from 25% to 30% on October 15th. In addition, the Treasury Department would potentially review its previous decision to designate China a currency manipulator. All in all, it seemed to mark a turning point in the bilateral tensions. According to a tweet from President Trump two days later, this was the beginning of a larger deal that would be spread over three phases and that would benefit American farmers and potentially put an end to the trade hostilities between the two nations. In short, he tweeted, “the relationship with China is very good.” Though he acknowledged that the actual terms of any deal are still being worked out, the President repeatedly expressed optimism that he and Chinese leader Xi Jinping could ink a deal by mid-November during their meeting at the upcoming Asia-Pacific Economic Cooperation (APEC) meeting in Santiago, Chile. Unfortunately, such confidence is misplaced. The decided lack of details on the scope, timing and mechanics of the phase one announcement is an indication of just how preliminary the agreement is. Second, Beijing remains unwilling to make more substantive concessions on core structural issues, ranging from its preferential treatment of its state-owned enterprises to a credible commitment that it will protect the intellectual property of foreign companies. Finally, even if phase one comes to fruition, this won’t do much to reduce the uncertainty that likely will define the U.S.-China relationship for years to come, as both countries begin to openly acknowledge that they are entering a period of prolonged strategic rivalry.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, and Trade Policy
Political Geography:
China, Asia, North America, and United States of America

76. TBTs, Firm Organization and Labour Structure

Author:
Giorgio Barba Navaretti, Lionel Fontagné, Gianluca Orefice, Giovanni Pica, and Anna Cecilia Rosso
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper investigates the effects on firms' occupational structure of shocks induced by the introduction of Technical Barriers to Trade (TBTs) in importing countries. We rely on the Specific Trade Concern (STC) data released by the WTO to identify trade-restrictive TBT measures, combined with matched employer-employee data for the population of French exporters over the period 1995-2010, and with information on the list of product-destinations served by each French exporter. Controlling for time-invariant firm/occupation effects and for time-varying sector/occupation shocks, IV estimates show that exporters respond to increased complexity associated with restrictive TBTs at destination by raising the share of managers at the expense of blue collars, white collars and professionals. This evidence is consistent with the growing literature exploring how firms organize their workforce composition in presence of exogenous (foreign) shocks; and it is also related to the well-beaten literature on the labour market effects of trade.
Topic:
Economics, International Political Economy, International Trade and Finance, Exports, Trade, Trade Policy, and WTO
Political Geography:
France

77. EU Trade Policy amid the China-US Clash: Caught in the Cross-Fire?

Author:
Felipe González and Nicolas Véron
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
China's rapid rise and unique economic system and the increasingly aggressive and disruptive US trade policy are posing an unprecedented threat to the global rules-based trading and economic system. The European Union has critical interests at stake in the current escalation, even as it has so far been comparatively spared from US trade policy belligerence and China's reactions. In this context, the European Union should adopt an independent and proactive stance, building on recent efforts and going beyond them. The European Union, even more than the United States or China, has a strategic interest in the preservation of the global rules-based order embodied by the World Trade Organization (WTO). It must play a leading role in steering WTO reform and modernization, working closely with broadly aligned third countries such as Japan and other players. It should expand its outreach beyond its immediate negotiating counterparts in both the United States and China, and leading European officials at both the EU and member state levels should work at better understanding China. While strengthening its domestic policy instruments to address new challenges, such as the screening of foreign direct investment for security purposes, the European Union must also resist its own temptations of protectionism and economic nationalism. In support of these objectives, the European Union should prepare itself for difficult decisions, which may involve revising some of its current red lines in international trade negotiations. Conversely, the European Union should stand firm on principles such as refusing one-sided agreements and rejecting abusive recourse to national security arguments in trade policies. The European Parliament, in working with the European Council and the European Commission, will have a critical role to play in steering the European Union through these challenging times.
Topic:
International Relations, Economics, Trade Wars, and Trade Policy
Political Geography:
China, Europe, Asia, North America, United States of America, and European Union

78. Advancing human rights in Asia through trade after Brexit

Author:
Katarina Schwarz, Todd Landman, and Katrina Peake
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Asia Research Institute, University of Nottingham
Abstract:
How can the UK best protect human rights in Asia, an area historically weak in protecting and promoting human rights, when it comes to securing new trade deals after exiting the European Union (EU)? This policy brief assesses potential pathways for the UK to protect human rights in Asia through trade after exiting the EU, accounting for the specific challenges of advancing human rights in the region. It draws on existing practice, with a focus on the EU, to make suggestions for future UK trade policy through both unilateral and bilateral arrangements.
Topic:
Human Rights, Bilateral Relations, European Union, Brexit, Trade, and Trade Policy
Political Geography:
United Kingdom and Asia

79. Advancing Human Rights in Asia through Trade after Brexit: Background Report

Author:
Katarina Schwarz, Todd Landman, and Katrina Peake
Publication Date:
06-2019
Content Type:
Special Report
Institution:
Asia Research Institute, University of Nottingham
Abstract:
Throughout the period of the United Kingdom’s membership in the European Union (EU) and under the status quo, the EU possesses exclusive competence of its Common Commercial Policy. It therefore does not have to consult the UK when developing trade agreements, and the UK’s part in these processes is defined by its role within the EU. The UK alone does not determine the existence, scope, or terms of trade relationships with third countries. However, after exiting the EU, the United Kingdom will exercise more substantial, and ultimate, decision-making power over the nature of trade with external partners. This creates an opportunity for the development and evolution of new, direct trading relationships with countries beyond the EU—relationships that are likely to have increasing significance in the UK economy after withdrawal and over time. As Prime Minister Theresa May recognised in a speech in Florence: "Our relations with countries outside the EU can be developed in new ways, including through our own trade negotiations, because we will no longer be an EU country, and we will no longer directly benefit from the EU’s future trade negotiations." Many aspects of these agreements are open to negotiation, creating new possibilities for the UK to expand its influence in a variety of areas, and to address particular challenges faced within the borders of trading partners.
Topic:
Human Rights, Bilateral Relations, Brexit, Trade, and Trade Policy
Political Geography:
United Kingdom and Asia

80. Prospects for a closer relationship with Indonesia after Brexit

Author:
Jacqueline Hicks
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Asia Research Institute, University of Nottingham
Abstract:
As the United Kingdom considers post-Brexit trade opportunities outside the European Union, this briefing looks at the potential for greater cooperation with Indonesia. It finds that there are some sectoral and trade and investment opportunities between the two countries. Developing a long-term strategy that signals commitment is key to participation in Indonesia’s promising growth trajectory. The UK can mitigate its reduced bargaining power outside the EU by providing targeted, practical trade facilitation measures in exchange for increased investment opportunities. Becoming an agile and dynamic economic partner in comparison with the EU’s bureaucratic approach chimes well with the small business background of Indonesia’s President Widodo.
Topic:
International Cooperation, European Union, Economic Growth, Trade, and Trade Policy
Political Geography:
Britain, United Kingdom, Indonesia, and Asia