Tag: trade

U.S.–China Relations Hurt by American Antidumping Abuse

As expected, Chinese President Xi Jinping raised the issue of antidumping abuse during his recent visit to Washington.  Specifically, he called on the United States to stop using “nonmarket economy” methodology when imposing antidumping duties on imports from China.  The issue is going to become more and more pressing as a diplomatic problem over the next year, because the United States is required under WTO rules to end NME treatment by December 2016. 

NME methodology is one of many ways the United States inflates the protectionist impact of U.S. antidumping law.  My colleague Dan Ikenson has thoroughly documented the senselessness of NME treatment.  Last year, I wrote a Cato Policy Analysis looking at how U.S. officials and policymakers might respond to the December 2016 deadline.

That deadline coincides closely with the end of President Obama’s term in office.  The president can choose to leave his successor years of trade conflict and WTO litigation by refusing to act.  Or he can do the right thing for the American economy and U.S.–China relations by ending NME treatment as soon as possible. 

Europe Must Abide TTIP’s Geopolitical and Security Implications

In today’s Cato Online Forum essay, Judy Dempsey of Carnegie Europe argues that the geopolitical and security implications of TTIP are immense, and that the EU and its member states need to wake up, smell the coffee, and acknowledge reality. This is the third essay focused on the geopolitical implications of the TTIP published in conjunction with the Cato Institute conference taking place October 12.  Previous essays – to compare and contrast – were written by Phil Levy and Peter Rashish

Read them. Provide feedback.  And please register to attend the conference.

TTIP: Battle for the Soul of Trade Policy?

In today’s Cato Online Forum essay, the AFL-CIO’s Celeste Drake asserts that labor unions are not opposed to trade per se, but to neo-liberal trade deals that only benefit corporate entities. Drake argues that the Transatlantic Trade and Investment Partnership offers a good opportunity to change the nature of trade agreements to include progressive, standard-raising provisions that promote inclusive growth and shared prosperity. She concludes:

No one believes that righting the course of globalization and trade will be quick or easy.  But if the process is to begin, the TTIP, with informed, active and engaged civil society on both sides of the Atlantic, seems an opportune place to make a stand to change the rules: not to stop trade, but to use it as a tool to achieve a global economy that works for all.

Celeste’s essay is offered in conjunction with a Cato Institute conference on the TTIP taking place October 12.  Read it. Provide feedback.  And please register to attend the conference.

Dealing with Regulatory Trade Barriers in the Transatlantic Trade and Investment Partnership

The notion that domestic regulations can have discriminatory impacts on imports (amounting to protectionism) isn’t controversial. Nor is it a revelation that having to comply with different sets of regulations in different jurisdictions that are intended to achieve the same safety or health or environmental outcome is superfluous and costly to businesses. Reducing or eliminating those kinds of costs could produce enormous saving. Indeed, many observers have suggested that the greatest gains from a TTIP agreement would come from a robust “regulatory coherence” outcome.

In today’s Cato Online Forum essay, trade scholar Simon Lester offers some much needed clarity about the substance and process of TTIP’s so-called regulatory coherence negotiations, while providing suggestions on how best to proceed.

Simon’s essay is offered in conjunction with a Cato Institute conference on the TTIP taking place October 12.  Read it. Provide feedback.  And please register to attend the conference.

$1,500 Sandwich Illustrates How Exchange Raises Living Standards

What would life be like without exchange or trade? Recently, a man decided to make a sandwich from scratch. He grew the vegetables, gathered salt from seawater, milked a cow, turned the milk into cheese, pickled a cucumber in a jar, ground his own flour from wheat to make the bread, collected his own honey, and personally killed a chicken for its meat. This month, he published the results of his endeavor in an enlightening video: making a sandwich entirely by himself cost him 6 months of his life and set him back $1,500.

(It should be noted that he used air transportation to get to the ocean to gather salt. If he had taken it upon himself to learn to build and fly a plane, then his endeavor would have proved impossible).

The inefficiency of making even something as humble as a sandwich by oneself, without the benefits of market exchange, is simply mind-boggling. There was a time when everyone grew their own food and made their own clothes.  It was a time of unimaginable poverty and labor without rest.

The greater the number of people involved in exchange, the more beneficial the process becomes. This morning, thanks to international trade, I am drinking coffee grown in Latin America, viewing a computer screen with eyeglasses made in Europe, and typing this blog post on a keyboard made in Asia. Fortunately, freedom to trade internationally has improved, on average, around the world. Increased trade has helped raise living standards and decrease global poverty.

Taxpayers and Transatlantic Trade: How TTIP Must Open Procurement Markets

In today’s Cato Online Forum essay, Gary Hufbauer and Tyler Moran explain why opening up more government procurement projects – especially U.S. procurement projects (and even more especially, state-level procurement projects) – to foreign competition is essential to a successful TTIP deal. Currently, even with the WTO Government Procurement Agreement in place, a treasure trove of U.S. business (in the trillions of dollars, unfortunately) is shielded from competition because it is “government spending” on “sensitive” projects.  

Those designations ensure that U.S. taxpayers get smaller bangs for their bucks, while entrenching inefficient firms as advantaged bidders.  Moreover, if TTIP fails to open U.S. procurement to more competition from EU firms, then EU negotiators will be less likely to meaningfully open their own markets to U.S. exporters and service providers.

Read it. Provide feedback. And sign up for the Cato TTIP conference on October 12.

How Will the Transatlantic Trade and Investment Partnership Affect U.S. Jobs?

Today’s Cato Online Forum essay comes from economist Laura Baughman, who laments the typical methodological approaches to estimating relationships between trade agreements and jobs, pointing out how those approaches seem to be used to validate a priori positions, either pro- or anti-trade, rather than reveal best estimates.  While economists are better at estimating the relationships between trade agreements and output or between trade agreements and trade flows, Baughman explains that if the likely impact of on jobs is sought, there is a more objective approach to take.  And the results of that method suggest that “it will be hard to argue that [TTIP] will not be a job ‘winner’ for the United States.”

Read it. Provide feedback.  And sign up for the Cato TTIP conference on October 12.