Category: International Trade

EU and US Trade and Investment Partnership a Second-Best Approach


Like the Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, and the Free Trade Area of the Asia-Pacific, the Transatlantic Trade and Investment Partnership (TTIP) between the European Union (EU) and the United States (US) is a second-best approach to trade and investment liberalization compared to a global agreement. A global agreement is not within reach, and thus Asia, as a non-beneficiary, will incur trade losses similar to the losses that Europe would incur as a non-beneficiary of an Asia-Pacific agreement on free trade.

Obama, the TPP, and Help from – Republicans?


Are the stars aligning for both passage of a trade promotion authority bill by Congress and approval of the Trans-Pacific Partnership agreement?

The Iron Ore Shipping Business is Facing Some Rough Seas


The impact of Chinese demand on global iron ore prices is well known. A less acknowledged consequence of China’s emergence is the transformation of incentive structures in the global shipping market. Dramatic increases in freight rates shifted global iron ore producers’ comparative advantage further in favour of Australian exporters to the detriment of the Brazilians.

China-EU Summit Opens with Strong Focus on Trade


Chinese and European leaders meet in Brussels today for the high-level EU-China summit with the emphasis on increasing trade ties between the two. Trade between China and the EU, the world’s largest trading block, has doubled since 2003, reaching 428 billion euros ($554 billion) last year.

The summit will also be the last for Chinese prime minister Wen Jiabao, who will be stepping down as head of the Communist Party’s powerful politburo standing committee later this year.

FTA Between South Korea and the U.S. Comes Into Effect Amid Much Praise, and Fear


The Korea-U.S. free trade agreement, first signed in 2007, has come into effect with the leaders of both countries calling it a good economic model that will help boost the strategic partnership between the two sides. However, activists are worried that South Korea’s agriculture and services industry might be compromised with the trade pact.

China Under Immense Pressure to Appreciate Yuan


The U.S. Senate has approved a bill that would increase the pressure on China and other countries to allow the value of their currencies to rise; in a move that supporters have said would create American jobs but that both American and Chinese leaders have warned could lead to a trade war.

Trade Deficit


A Trade Deficit occurs when the value of a country’s imports exceed its exports for a specific period of time, usually a year. The relationship between imports and exports are called the trade balance. When exports exceed imports it is called a trade surplus. Trade deficits can occur in both developing and advanced countries. The United States, for example, has been running a trade deficit for many years. While a trade surplus contributes to the GDP of a nation, a trade deficit will reduce GDP.

Trade Barrier


Trade barriers refer to government-imposed policies to restrict international trade. Most commonly, a country’s government employs tariffs, duties, embargoes and subsidies as trade barriers. However, imposing trade barriers are against the concept of free trade, popularized by developed nations.