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.

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.

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.