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261. How Trade with Mexico Impacts Employment in the United States

Author:
Christopher Wilson
Publication Date:
11-2016
Content Type:
Working Paper
Institution:
The Wilson Center
Abstract:
The U.S.-Mexico trade relationship is huge. The two countries trade over a half-trillion dollars in goods and services each year, which amounts to more than a million dollars in bilateral commerce every minute. With such a large volume of trade, it is not hard to believe that the number of jobs that depend on the bilateral relationship is similarly impressive. New research commissioned by the Mexico Institute shows precisely that: nearly five million U.S. jobs depend on trade with Mexico. This means that one out of every 29 U.S. workers has a job supported by U.S.-Mexico trade.
Topic:
Globalization, International Political Economy, International Trade and Finance, and Employment
Political Geography:
America and Mexico

262. Trading Pains and Gains: Expanding Trade Alliances in Asia

Author:
Rupert Hammond Chambers, Pek Koon Heng, and Tami Overby
Publication Date:
10-2016
Content Type:
Special Report
Institution:
The Wilson Center
Abstract:
Since its rather humble beginnings as a free trade agreement between Chile, Brunei, Singapore, and New Zealand in 2005, the Trans-Pacific Partnership (TPP) agreement has ballooned into a pact that includes two of the three biggest economies in the world. Signed by the 12 founding members in February 2016, namely the United States, Canada, Mexico, Japan, Australia, Peru, Vietnam, and Malaysia as well as the four original signatories, the TPP represents nearly 40 percent of the world’s GDP. It has been described as the most ambitious multinational trade deal in history, with high standards that address issues that have not been address by trade agreements until now including environmental protection, labor rights, and addressing competition issues related to state-owned enterprises.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Global Focus

263. Political Economy of Trade With the European Union: South Africa's Pursuit of Narrow Self-Interest

Author:
Oscar Van Heerden
Publication Date:
06-2016
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
In the years between 1995 and 2008 South Africa was engaged in trade negotiations with the European Union (EU), which were seen as platform for addressing the trade imbalances in favour of the EU. In 2002, a Free Trade Agreement (FTA) was signed between South Africa and the EU. Despite its membership to the Southern Africa Development Community (SADC), South Africa engaged on the negotiations on its own which led to trade and political tensions with other countries within the community. By going alone South Africa was clearly indicating an appetite to vigorously pursue its interests at the expense of regional partners. It is argued that the exclusion, at an early stage of the negotiations, of other regional countries within SADC was counterproductive and had the potential to harm the regional trade relations. In addition, the change of approach at later stage that brought in the regional approach to the negotiations improved the regional trade relations within SADC.
Topic:
Development, International Trade and Finance, Regional Cooperation, and European Union
Political Geography:
Africa, Europe, and South Africa

264. Framing Sino-Brazilian Energy Cooperation: Perspectives from China

Author:
Cui Shoujun and Otavio Costa Miranda
Publication Date:
12-2016
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
With the booming of Brazil’s off-shore oil drilling, the Sino-Brazilian energy cooperation is facing historical opportunities, manifested in the fields of oil trade, market access, technology transfer and bioenergy exploration. To achieve a steady and robust development in bilateral cooperation, China should take a proactive energy diplomacy approach to overcome challenges arise from its increasing engagement.
Topic:
Energy Policy, International Trade and Finance, Oil, Science and Technology, and Natural Resources
Political Geography:
China, Asia, Brazil, and South America

265. Regional Powers and Leadership in Regional Institutions: Nigeria in ECOWAS and South Africa in SADC

Author:
Merran Mulse
Publication Date:
11-2016
Content Type:
Working Paper
Institution:
The Kolleg-Forschergruppe (KFG)
Abstract:
Regional powers are not always benevolent leaders when it comes to the building of regional institutions. While powerful states – particularly the “new” rising powers – may have a vested interest in regionalism as a means of projecting influence, regional powers may behave as coercive or benevolent leaders, or alternatively display an absence of leadership altogether. The drivers of varying regional power behavior can be attributed to their competing concerns regarding (economic) power, functional efficiency, international legitimacy, and neopatrimonial networks. This paper explores the varying behavior of Nigeria and South Africa in relation to the institutionalization of free trade areas and regional courts within their respective regions. Nigeria has displayed little leadership in ECOWAS trade integration due to domestic opposition; however, a newly-democratic Nigeria’s search for international legitimacy drove the establishment of the ECOWAS Court of Justice. Likewise, South Africa’s search for legitimacy drove its support for the SADC Tribunal, but the competing demands of different audiences led it to abandon this support. South Africa has also displayed leadership in relation to the SADC Free Trade Area; however, its neighbors perceive it as a self-interested, almost coercive actor. The findings suggest that the motivations for regional powers’ behavior vary across time and policy sectors, and that inconsistent behavior is driven by a change in the priority granted to different drivers.
Topic:
International Trade and Finance, Regional Cooperation, Leadership, Legitimacy, and Institutionalism
Political Geography:
Africa, South Africa, and Nigeria

266. Impact of China Slowdown on India

Author:
Geetima Das Krishna and Ankit Bhardwaj
Publication Date:
02-2016
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
After three decades of double-digit growth, China is slowing as it is rebalancing its economy from export-driven to less-volatile domestic consumption driven economy. The paper looks at the impact of China slowdown on India through different channels. Even though India is usurping China as the fastest growing major economy in the world, Indian economy being a fifth of the Chinese economy and also less material intensive can hardly substitute for China as a global growth driver. China has emerged as the largest trading partner of India but India’s trade still remains less vulnerable to Chinese slowdown directly as India’s services exports account for as much as 50% of India’s overall exports (merchandise and services). On the other hand, China’s total FDI investment in India has been miniscule $1.2 billion till September 2015 and India’s infrastructure sector, with its massive investment needs, can be the natural destination for Chinese investments. India reaped the indirect benefit of lower commodity prices in terms of narrower CAD, softening inflation, lower interest rate, increased government fiscal bonanza, all of which contributed to greater macro-stability in India. It was also found that a 50bps decline in China’s growth rate is likely to lower India’s growth by 30bp in the short run.
Topic:
International Trade and Finance, Bilateral Relations, Economy, Economic growth, and Regional Integration
Political Geography:
China, South Asia, India, and Asia

267. The Blind Men and the Elephant: Making Sense of China's One Belt One Road Initiative

Author:
Nimmi Kurian
Publication Date:
12-2016
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
China’s One Belt One Road Initiative has virtually been a lightning rod for divisive debate and a polarised narrative since it was announced in 2013. For India, it has been the proverbial elephant in the room, as it awkwardly swings between willful pretence and wishful erasure. The policy brief looks at the clues this initiative could offer on the likely drivers of China’s economic diplomacy in the region. There could be three signals for India to watch out for. A clear pointer is the growing role of domestic determinants in setting the direction and pace of China’s regional economic engagement. Another pointer could be China’s role in shaping and defining Asia’s new institutional financial architecture. Lastly, the initiative could be a signal of how China is likely to engage with the larger questions of benefit sharing, trade-offs and the allocation of risks and burdens in subregional Asia.
Topic:
Diplomacy, International Trade and Finance, Regional Cooperation, Infrastructure, Economic growth, and Soft Power
Political Geography:
China, South Asia, India, and Asia

268. India-Japan Brief

Author:
Rani Mullen and Kashyap Arora
Publication Date:
11-2016
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
Japan and India constitute two of the oldest democracies in Asia and also stand among Asia’s three biggest economies. It was in the year 1952 that India and Japan signed their first treaty and six years later in 1958, India received its first official development assistance from Japan. However, a major breakthrough in the bilateral ties took place only in the year 2000 when Japanese Prime Minister Yoshiko Mori visited India. The visit witnessed establishment of ‘Global Partnership between India and Japan’. This relationship was elevated to ‘Global and Strategic Partnership’ in 2006 which was later followed by up gradation of the bilateral partnership to the status of ‘Special Strategic and Global Partnership’ in 2014. In December 2015, both Indian and Japanese leaders also laid out the future roadmap of India-Japan ties in a joint statement referred to as ‘Japan and India Vision 2025: Special Strategic and Global Partnership Working Together for Peace and Prosperity of the Indo-Pacific Region and the World’. Both the economies also find themselves in a mutually beneficial situation with Japanese economy finding it difficult to sustain economic growth due to its ageing and shrinking population size, whereas India suffers from infrastructural bottlenecks. More importantly, stronger India-Japan alliance also provides impetus to balance and counter the growing Chinese influence and ensure freedom of navigation and multilateralism in the Indo-Pacific. Both the countries also constitute a strong source of mutual support at multilateral level on global issues including each other’s candidature as a permanent member of an expanded United Nations Security Council (UNSC) as well as India’s membership in the four international nuclear export control regimes among many others.
Topic:
International Trade and Finance, United Nations, Bilateral Relations, Partnerships, Economies, and Multilateralism
Political Geography:
Japan, South Asia, India, and East Asia

269. CETA Without Blinders: How Cutting ‘Trade Costs and More’ Will Cause Unemployment, Inequality and Welfare Losses

Author:
Pierre Kohler and Servaas Storm
Publication Date:
10-2016
Content Type:
Working Paper
Institution:
Global Development and Environment Institute at Tufts University
Abstract:
Proponents of the Comprehensive Economic and Trade Agreement (CETA) emphasize its prospective economic benefits, with economic growth increasing due to rising trade volumes and investment. Widely cited official projections suggest modest GDP gains after about a decade, varying from between 0.003% to 0.08% in the European Union and between 0.03% to 0.76% in Canada. However, all these quantitative projections stem from the same trade model, which assumes full employment and neutral (if not constant) income distribution in all countries, excluding from the outset any of the major risks of deeper liberalization. This lack of intellectual diversity and of realism shrouding the debate around CETA’s alleged economic benefits calls for an alternative assessment grounded in more realistic modeling premises. In this paper, we provide alternative projections of CETA’s economic effects using the United Nations Global Policy Model (GPM). Allowing for changes in employment and income distribution, we obtain very different results. In contrast to positive outcomes projected with full-employment models, we find CETA will lead to intra-EU trade diversion. More importantly, in the current context of tepid economic growth, competitive pressures induced by CETA will cause unemployment, inequality and welfare losses. At a minimum, this shows that official studies do not offer a solid basis for an informed decision on CETA.
Topic:
International Trade and Finance, European Union, GDP, and Diversity
Political Geography:
Europe

270. Shifting Sands: Power, Uncertainty and the Form of International Legal Cooperation

Author:
Timothy Meyer
Publication Date:
01-2016
Content Type:
Journal Article
Abstract:
This article argues that the form of international agreements – binding hard law agreements versus non-binding soft law agreements – can be partially explained by states’ interests in promoting renegotiation in the presence of uncertainty and shifting power. I make this argument in three steps. First, I explain that states regularly use unilateral non-compliance as a renegotiation strategy. Second, I argue that making an agreement soft facilitates this use of unilateral non-compliance. Third, I analyse the conditions – uncertainty characterized by common interests (but not uncertainty characterized by distributive concerns) and shifting power – under which facilitating renegotiation through soft law will appeal to states. In particular, I argue that in the presence of these conditions preventing renegotiation creates long-term costs for states that can inhibit short-term cooperation. In effect, under these conditions the shadow of the future can inhibit cooperation rather than support it, as is conventionally thought. These conditions are common to many major contemporary subjects of international cooperation in a way they were not during the latter half of the 20th century, partially explaining the increased importance of soft law to contemporary international governance.
Topic:
International Relations, International Law, International Trade and Finance, Treaties and Agreements, and United Nations
Political Geography:
Europe, United Nations, and Global Focus