Category: International Trade

China-Australia Free Trade Agreement Inked


The China-Australia free trade agreement is not just another FTA. In the coming decade, it will make a unique contribution to stability and prosperity in the Asia Pacific.

After almost a decade of talks, China and Australia recently signed a Free Trade Agreement (FTA). After more than 20 rounds of talks spanning across three governments and five prime ministers, the two key negotiators, China’s Commerce Minister Gao Hucheng and Australia’s Minister for Trade and Investment Andrew Robb, eventually inked the deal.

The U.S. Government Puts the Country’s Credibility and Reliability at Stake Again


The doomsayers claim that the role of the dollar is being eclipsed by the rise of the Chinese yuan.  Others see the demise of the dollar and some countries, like Iran and Russia, selling oil in other currencies than the greenback.

These all high profile developments, but they are not what they may seem.  The yuan is still a relatively small currency, according to SWIFT.  The transactions on SWIFT remain highly concentrated in dollars and euros. 

President Obama Not Feeling it from the House on Free Trade


Over the last several days, President Barack Obama pulled out all the stops to pass Trade Promotion Authority (TPA) – aka fast track –, which would restrict Congress to an up-or-down vote without amendments on trade deals for the next three years.

The TPP One Hurdle at a Time


After the Senate’s refusal to pass trade promotion authority (TPA) on May 12, some trade advocates feared that President Obama’s ongoing commercial negotiations with Asia and Europe would die a slow death.

Yesterday’s narrow vote in the Senate to close debate on TPA – a key hurdle to final passage – promises to lift their spirits considerably, as it likely guarantees passage of the bill within the next few days, ahead of the Memorial Day recess.

The Argument for Slow-Track TPA


Unless the Trans-Pacific Partnership (TPP) trade talks conclude soon, they risk dragging on interminably. If that happens, the United States’ capacity to function as a benign world hegemon will be diminished.

To avoid this, the White House is determined to get the pact signed and ratified by the end of 2015. This means persuading the US Congress to approve the Trade Promotion Authority (TPA) in June and its TPP negotiating partners to sign a deal just few weeks later.

Is Today TPA’s Day?


Successful horse-trading got the US Senate closer to granting the President Trade Promotion Authority for the first time since 2002.  Sixty votes needed to push the process to the next step and that is exactly what happened after a deal was worked out of the Export-Import Bank, whose authorization expires at the end of next month. 

Enforceable Currency Disciplines and International Trade


Ever since the post-gold standard age of adjustable exchange rates was inaugurated in the mid-1930s to consensually engineer a negotiated depreciation, the question of exchange rates and of trade have been entwined and subject to international oversight. This certainly should not mean that US trade policy bureaucrats should obtain the power to usurp the IMF’s (and the Treasury Department’s) statutory authority and assess, and enforce, exchange values.

Moving on with the TPP through TPA


Reports exaggerated the significance of the May 12 procedural vote in the US Senate.  Some called it a rebuke of Obama.  Others said it was a stunning blow or a sharp defeat. It was none of these things. After looking at what happened, we quickly concluded that this was an easily fixable minor setback.

India PM Modi’s Next Tour Stop in China


China and India are ready for breakthrough diplomacy that has the potential to reorder the face of Asia, while supporting global growth prospects.

From May 14th to 16th, India’s Prime Minister, Narendra Modi, will make a three-day trip to China and meet President Xi Jinping. It can be seen as Act 2 to the September 2014 visit President Xi made with Prime Minister Modi in New Delhi. The meeting did result in substantial trade deals but not yet in a diplomatic breakthrough.

‘Fast-Track’ Trade Promotion Authority Hits a Speed Bump


The main legislative hurdle to granting Obama Trade Promotion Authority (fast track) was supposed to be in the House of Representatives. This makes the defeat on a procedural vote in the Senate even more surprising. Vocal opposition came from the minority leader of the Senate (Reid) and one of the leaders of the left wing of the Democratic Party (Warren). However, the defeat had little to do with their protests.