Last Thursday President Trump acted to impose 25 per cent tariffs on steel and 10 per cent tariffs on aluminium. This action followed an investigation under Section 232 of the 1962 US Trade Expansion Act by the US Commerce Department of whether imports were endangering US national security. The European Union’s response to this action, and that of other […]
The past two weeks of the Brexit cycle has once again seen Ireland at the centre of the Brexit debate following key publications and speeches from both the UK and the EU.
On Wednesday 28 February, the EU stirred debate with the publication of its draft Withdrawal Agreement. This 120-page text aims to provide a legal underpinning to what was […]
Recent research has shown that international trade can lead to job losses in some sectors and areas within a country and gains in others, and it can also affect the countrywide level of wage inequality across workers. These side effects of globalisation have fuelled populist responses in Europe and the United States, with political leaders promising to stop global […]
The decision by the Trump administration to protect the US steel industry is by no means new. The Obama White House followed previous administrations in imposing anti-dumping duties to protect US steel against ‘unfair’ import competition from certain suppliers for certain products. In 2002 the Bush government introduced temporary safeguard measures to protect US steel from all imports of […]
Adam S. Posen has worked for central banks on both sides of the Atlantic – the US Federal Reserve and the Bank of England – and has written extensively about fiscal and monetary policies, Japan, the Eurozone and the US. Since 2013 Mr Posen has been the president of the think-tank Peterson Institute for International Economics (PIIE.) He is currently concerned […]
President Trump on the campaign trail promised to ‘renegotiate or rip up’ the North American Free Trade Agreement. As the US signals its intention to renegotiate this free trade agreement with Canada and Mexico, Trump’s tweets have focused on the Canadian dairy sector, where a stand-off between politicians on both sides of the border highlights the continued importance of the agricultural […]
The advantage of being in a trade area like the European Union is that a company can sell its products and services to a larger pool of customers. These are the usual gains from trade: each company/country specializes in what it does best, and by doing so, increases consumer welfare. By selling to a larger pool of customers, companies […]
In an apparent break with its past practices, the IMF’s policy advice shifted towards being more open to fiscal stimulus packages during the global financial crisis in 2008-2009, especially for large economies that are systemically important as growth engines for the world economy. There was evidence of an incremental change underway in the IMF’s policy paradigm and how staff […]
No matter which statistics we look at, real growth in trade or trade to GDP ratios, there is little doubt that over the last 20-25 years we’ve seen unprecedented growth in global trade flows. The only exception was the period of the global financial crisis when global trade plummeted but even then recovery was very swift and global trade […]
Both in the run up to the referendum, and since the UK voted to leave the EU, there has been a good deal of speculation over the likely impact on inward FDI into the UK. In a timely recent piece for Columbia FDI Perspective, Laza Kekic suggested that UK inward investment will remain robust post Brexit. We beg to differ.
Japanese […]
Rana Plaza, an eight-story building in Bangladesh that housed garment factories employing approximately 5000 workers, collapsed on April 24, 2013. The resulting fatalities (over 1100) and injuries (over 2400) made it one of the worst industrial accidents in history. The scale of this tragedy and subsequent widespread press coverage put a spotlight on the risks and costs of sourcing […]
“In the long run we are all dead,” and firms and industries are no exception. America, Europe, and Japan once dominated the manufacturing of computers and electronics, but these activities had all gone to low-cost countries by the end of the 20th century. Should we ban offshoring and stop “shipping jobs overseas”? Many voters and politicians seem to think […]
In 1999 lovastatin, a blockbuster cholesterol drug with annual peak sales of more than $1 billion in the U.S., became commercially available in Egypt — twelve years after it was first approved for sale by the U.S. Food and Drug Administration. Our research shows that this is not exceptional — long launch lags are common and 45 per cent […]
The question of UK membership of NAFTA seems to be doing the rounds again. This is not entirely surprising. Both Australian and Canadian trade officials – including Ottawa’s former chief NAFTA negotiator – have recently called for the UK to join existing trading blocks, such as NAFTA, as an easy fix to potential Brexit-related disruptions to UK trade and production. […]
One word was conspicuous by its absence in the communiques on trade that came out of three meetings this year of the world’s finance chiefs. The G20 finance ministers, the International Monetary and Financial Committee and the G7 finance ministers all used the same sentence when it came to trade: “We are working to strengthen the contribution of trade […]
How does globalisation affect development? This question has a long tradition in economics and has been much debated both in academia and in policy circles.
Neoclassical theories tell us that reducing trade barriers across countries should provide net benefits to individual economies by making markets more efficient and stimulating competition. Testing these theories, however, turns out to be difficult: rich […]
‘Brexit is a rejection of globalisation’ (Larry Elliott, Guardian, 26th June 2016).
Larry Elliott’s claim about the causes of Brexit is stark, but one echoed, if usually in slightly more qualified fashion, by many other commentators. For example, in her Sylvia Ostry lecture in September 2016, Christine Lagarde, Managing Director of the IMF, put forward similar ideas, with the theme […]
The so-called golden era of globalised trade that began shortly after World War II has more than a few things to recommend it. Trade liberalisation has lifted hundreds of millions of people from crushing poverty, promoted productivity and growth and linked once-hostile nations in a network of mutual dependence that lessened the chances of another ruinous military conflict.
So why […]
The Cold War from 1948 to 1991 polarised opinion between advocates of capitalism and supporters of Soviet-style socialism. But after the fall of the Berlin Wall the conversation became more variegated. There was a remarkable growth in the literature on ‘varieties of capitalism’ including works by Michel Albert (1993), Colin Crouch and Wolfgang Streeck (1997), Bruno Amable (2000), Masahiko […]
The future of the North American Free Trade Agreement is looking increasingly uncertain under Donald Trump as president of the United States. In case NAFTA implodes, Armand de Mestral proposes the creation of the Atlantic Free Trade Area between Canada and the United Kingdom, in a framework involving Europe and the US.
A close look at NAFTA
NAFTA has been in […]
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