Found 287 article(s) in category 'Trade Policy'

Understanding Agricultural Price Range Systems as Trade Restraints: Peru – Agricultural Products

Understanding Agricultural Price Range Systems as Trade Restraints: Peru – Agricultural Products. Mark Wu, April 2016, Paper. “An agricultural price range system (PRS) aims to stabilize local prices in an open economy via the use of import duties that vary with international prices. The policy is inherently distortionary and welfare-reducing for a small open economy, at least according to the canonical economic model. We offer an explanation for why a government concerned with national welfare may nevertheless implement such a policy when faced with risk aversion and imperfect insurance markets. We also highlight open questions arising out of the Peru – Agricultural Products dispute for the WTO’s Appellate Body to address in order to clarify how a PRS consistent with WTO rules could be designed.Link

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Adjustment and Income Distribution Impacts on the TPP

Adjustment and Income Distribution Impacts on the TPP. Robert Lawrence, April 2016, Book Chapter. “Like all free trade agreements, the Trans-Pacifi c Partnership (TPP) will yield gains to the economy in general but force difficult adjustments on some workers and businesses. Peter A. Petri and Michael G. Plummer (2016) find that the agreement will benefi t the United States as a whole, raise real wages of both skilled and unskilled workers, and increase the real return to capital. It will, however, hurt some workers. In particular, some workers will be displaced by imports and lose income from being unemployed or earning less in their new jobs.Link

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Gains from Foreign Direct Investment: Macro and Micro Approaches World Bank’s ABCDE Conference

Gains from Foreign Direct Investment: Macro and Micro Approaches World Bank’s ABCDE Conference. Laura Alfaro, March 23, 2016, Paper. “This paper discussed the importance of an “integrated approach” to the study of the effects of FDI on host countries. Macro-level work that examines countries at different stages of development and institutional capacity is needed to surface the role of local conditions and absorptive capacities; micro-level work, that is firm-level data in developed as well as developing nations, to understand the mechanisms that impart substance to the anticipated benefits; and theoretical work to guide the analyses. The paper summarizes likely motives for foreign direct investment and potential effects of FDI on local economies as well as recent findings from the macro literature on the role of complementarities between FDI and local policies, conditions, and institutions and summarizes new efforts to understand the micro mechanisms and channels by which host countries can benefit from multinational activity, within and between firm productivity increases.Link

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Silk-Road Type Projects: Lessons From Some Historical Examples

Silk-Road Type Projects: Lessons From Some Historical Examples. Robert Z. Lawrence, 2016, Book Chapter. “China’s Belt and Road Initiative is a project of truly historic proportions. If successful, it has the potential to deliver significant benefits to China and its neighbors. To realize this potential, both China and the recipient nations must overcome numerous institutional challenges. This chapter draws on a variety of historical experiences to explore the nature of these challenges. It does so not to argue that history will repeat itself or to imply that the project replicates the precise conditions of the examples chosen but to reflect on what history tells us about both the potential and pitfalls that have been associated with such endeavors in the past.Link

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Treasury’s Unfinished Work on Corporate Expatriations

Treasury’s Unfinished Work on Corporate Expatriations. Stephen Shay, February 22, 2016, Paper. “Continued tax-motivated inversions of U.S. corporations into foreign corporations highlight the systemic tax advantages that a foreign-owned U.S. corporation has over a U.S.-owned corporation in avoiding U.S. corporate tax on U.S. business income. In the absence of congressional action, this article emphasizes the need for the Treasury to further reduce U.S. tax incentives for inversions and other foreign acquisitions of U.S. corporations. The two most important of the tax incentives are earnings stripping and the ability to use, directly or indirectly, a U.S. group’s unrepatriated foreign earnings for the benefit of shareholders of the foreign parent corporation without incurring current U.S. income tax. These tax advantages will not be meaningfully reduced by any plausible lowering of the top U.S. corporate tax rate. Moreover, earnings stripping would be exacerbated by adoption of a territorial system.Link

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Institutions, Institutional Change and Economic Performance in Emerging Markets

Institutions, Institutional Change and Economic Performance in Emerging Markets. Lakshmi Iyer, 2016, Book. “Emerging markets play an increasingly important role in the global economy, accounting for 31% of global GDP and more than 50% of global foreign direct investment in 2012. However, doing business in emerging markets remains subject to a high degree of “policy risk,” namely the risk that a government will discriminatorily change the laws, regulations, or contracts governing an investment — or will fail to enforce them — in a way that reduces an investor’s financial returns …Link

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What the WTO can learn from Paris climate talks

What the WTO can learn from Paris climate talks. Robert Lawrence, December 7, 2015, Opinion. “For many years, negotiators at the annual conferences of the United Nations Framework Convention on Climate Change looked longingly at how the World Trade Organization was able to negotiate effective international agreements. Ironically, the Paris climate talks that are scheduled to conclude on Friday and the WTO negotiations, which will take place next week in Nairobi, lead to the opposite conclusion. Trade negotiators should emulate the progress made in the climate change agreements by moving away from a simplistic division between developed and developing countries. For years, global climate change policy was hobbled by this division. In the Kyoto Protocol — the international agreement to reduce greenhouse-gas emissions — only developed countries committed to mandatory emissions reduction. Developing countries had no obligations. … Link

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The Import of Exports

The Import of Exports. Ricardo Hausmann, November 26, 2015, Opinion. “Should a country’s development strategy pay special attention to exports? After all, exports have nothing to do with satisfying their people’s basic needs, such as education, health care, housing, power, water, telecoms, security, the rule of law, and recreation. So why give precedence to satisfying the needs of distant foreign consumers? That, in a nutshell, is what many opponents of free trade and economic globalization – as well as many on the right who believe that all industries should be treated equally – want to know. But there are no right answers to wrong questions…Link

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Congress Should Vote Thumbs Up to Trade Deal

Congress Should Vote Thumbs Up to Trade Deal. Jeffrey Frankel, November 12, 2015, Opinion. “Now that the long-awaited text of the Trans-Pacific Partnership agreement has been released, Congress will have to decide whether to ratify it. It should vote thumbs up. Many who are concerned about labor and environmental issues are fervently opposed to TPP, but they should read the text with an open mind. It seems unlikely that they did so, judging by the speed with which some nongovernmental organizations and others reacted negatively to the document within a few hours of its release last week…” Link

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