International Trade Issues Research Articles

EU의 개정통상정책과 대응방안

In 2010, the trade policy of EU was revised, which was for the implementation of the foreign trade policy of the strategy “Europe 2020”. The revised trade policy was modified on the basis of the performance assessment of the Global Europe 2006 trade policy. In adopting the new policy, the EU will actively raise trade issues such as service trade, foreign direct investment, public procurement, and intellectual properties for supporting European corporations in the global market. Furthermore, the EU is planning to conclude the FTAs currently being negotiated as well as the WTO DDA as early as possible, run a public-private joint monitoring system to keep a watchful eye on non-tariff barriers in trading partners, and take full advantage of various trade defense measures including Trade Barriers Regulations (TBR). As the countermeasures to the revised trade policy of the EU, the following 5 points are of importance: ① Through the cooperation with the EU in the field of international trade issues, Korea should find more chances for strategic partnership relations between the EU and Korea. By the Korea-EU FTA, Korea has already completed negotiations for sensitive trade issues, which the EU could possibly raise. Therefore the possibility of bilateral trade dispute is very low, and the situation in reality gives Korea more bilateral cooperation possibilities for the openness of the third markets. ② Korea should take up a positive attitude for signing the WTO DDA of EU. ③ Korea should check the areas that could cause a trade dispute under the new trade policy of the EU. The EU is expected to pay special attention to the implementation of the Korea-EU FTA, closely monitoring in particular the fulfillment of the agreement. ④ Korea is to pay attention to the relationship between EU and its main trading partners - in particular Japan and China. ⑤ Korea should expand its network system to monitor the trade policy of the EU, which will have a significant influence on various regulations of international trade. In 2010, the trade policy of EU was revised, which was for the implementation of the foreign trade policy of the strategy “Europe 2020”. The revised trade policy was modified on the basis of the performance assessment of the Global Europe 2006 trade policy. In adopting the new policy, the EU will actively raise trade issues such as service trade, foreign direct investment, public procurement, and intellectual properties for supporting European corporations in the global market. Furthermore, the EU is planning to conclude the FTAs currently being negotiated as well as the WTO DDA as early as possible, run a public-private joint monitoring system to keep a watchful eye on non-tariff barriers in trading partners, and take full advantage of various trade defense measures including Trade Barriers Regulations (TBR). As the countermeasures to the revised trade policy of the EU, the following 5 points are of importance: ① Through the cooperation with the EU in the field of international trade issues, Korea should find more chances for strategic partnership relations between the EU and Korea. By the Korea-EU FTA, Korea has already completed negotiations for sensitive trade issues, which the EU could possibly raise. Therefore the possibility of bilateral trade dispute is very low, and the situation in reality gives Korea more bilateral cooperation possibilities for the openness of the third markets. ② Korea should take up a positive attitude for signing the WTO DDA of EU. ③ Korea should check the areas that could cause a trade dispute under the new trade policy of the EU. The EU is expected to pay special attention to the implementation of the Korea-EU FTA, closely monitoring in particular the fulfillment of the agreement. ④ Korea is to pay attention to the relationship between EU and its main trading partners - in particular Japan and China.

The Curious Case of Earth’s Survival v. The World’s Development

The over exploitation of marine life is the first part of the planetary crisis. The second part of the crisis arises because man is ambitious and cannot be stopped from progressing everyday. This creates a dominoes effect, by raising concerns about species dependent on marine life, which would be everybody else. This threat on marine life along with hitherto unprecedented levels of development on a very fragile earth can lead to a very bleak future. Development and progress have made the world a smaller place. Development and progress have also ensured that there isn't so much of the earth left to go around. The nations of the world have always agreed that developing sustain ably and with precaution is the only way forward if we are to have a future. We come to a juncture where what is legally sound may not be morally acceptable. Here arises the problem of balancing. This paper considers the earth’s journey from the Stockholm Conference of 1972 and The Rio Declaration of 1992 to marine life and international trade issues faced by us today. It draws conclusions by tracing the evolution and the competition between the two parts of the planetary crisis. The paper offers an alternative story of the future, if the balance is not maintained between international norms and development by the nations of the world, by bringing forth paradigm shifts in the planetary crisis between ambitious nations and the survival of the living earth.

THE IMPACT OF THE TAIPEI PORT CONTAINER TERMINAL ON THE NORTHERN REGION OF TAIWAN: A COMPUTABLE GENERAL EQUILIBRIUM MODEL

There are some primary modelling tools, including econometric forecasting models, fixed price input-output (I-O) multi-sector models, social accounting matrix (SAM) and computable general equilibrium (CGE) models, used to analyse regional economic issues. CGE models combine the advantages of econometric, I-O models and SAM, strengthening the theoretical basis of the modelling effort and thus enabling more precise policy analysis. Current CGE literature includes models used to analyse international trade, tax reform, energy and environment issues. However, application of this technique on a regional scale is rare in the scientific literature. In this paper, a small regional computable general equilibrium model is constructed and applied to analyse the economic impact of constructing Taipei Port Container Terminal (TPCT) locating in northern Taiwan. The research results provide a valuable reference for decision-makers in formulating ocean shipping and regional policies, as well as helping business managers with strategic planning.

Institution-Driven Comparative Advantage, Complex Goods and Organizational Choice

This thesis consists of three independent papers, ordered chronologically with respect to when they were initiated. Empirical research has established that there are large and persistent productivity differences among firms in narrowly defined industries (Bartelsman and Doms, 2000). Other studies, in particular Bernard and Jensen (1999), have shown the existence of a causal link running from ex-ante firm productivity to export decisions. Furthermore, exposure to trade has been found to enhance growth opportunities only for some firms, reallocating market shares and resources toward the more productive ones and contributing thus to aggregate productivity growth (Clerides, Lach and Tybout, 1998; Bernard and Jensen, 2004). These findings have led to the development of new theoretical models emphasizing the interaction between firm heterogeneity and fixed market entry costs in generating international trade and inducing aggregate productivity growth. The first and third chapters of this thesis extend the framework developed by Melitz (2003) to analyze the implications of firm heterogeneity for old and new issues in international trade. The first paper studies the effect of trade liberalization between countries that differ in their relative endowment of skilled workers when growth-promoting R&D activities are skill intensive with respect to goods production. In particular, the analysis focuses on the changes that falling trade costs induce on consumer welfare and on the number of firms active in the different markets. The third paper uses the heterogeneous firm framework to study the interaction between financial constraints and the market entry behavior of firms. It also analyzes whether the impact of trade liberalization on average firm productivity and on individual welfare is affected by the presence of credit frictions. The second chapter presents an empirical work that contributes to the recent but fast growing literature that studies how different institutions and their level of development affect countries comparative advantage. The analysis presented in this paper focuses on the role of legal and financial institution in driving the specialization in contract-intensive goods and on how the degree of institutional development interacts with the propensity of firms to vertical integrate with their suppliers.

Still Up to the Challenge? International Trade Issues Facing the Basel Convention as it Enters its Third Decade

The Basel Convention is inarguably a noble effort to combat the grave threat to human and environmental health posed by hazardous wastes, but it has failed in at least one of its fundamental objectives: to minimize the movement of hazardous waste across international borders. Is the framework of the Convention sufficient to achieve its goals as well tackle emerging issues in international trade?The first half of the paper provides generous background information about the Basel Convention including: - its origins and purpose - a case study of the infamous Khian Sea incident - the organization and scope of the treaty - how the treaty employs trade measures to minimize trade in hazardous waste - how the Convention approaches compliance and dispute resolution - the future implementation of the Convention via the New Strategic Framework to be addressed at COP10 - proposed provisions including the Basel Ban Amendment and the Protocol on Liability and Compensation.The second half of the paper discusses the Basel Convention's strengths and analyzes its shortcomings. It also suggests improvements for the Convention to succeed in its original and assumed objectives. Topics addressed include: - the incorporation the Precautionary Principle into the treaty - inconsistent standards in Annex IX - the circumvention of the convention by traders of e-waste and ship breaking - hazardous wastes outside of the Convention such as ship wastes and radioactive waste - the failure of the treaty's trade measures to achieve its objectives - the potential conflict of the treaty's trade measures with the WTO Agreements - inadequacies of the Basel Compliance Mechanism - the lack of a dispute settlement system.After 20 years, the purpose of the Basel Convention remains as relevant as ever, but its framework, while not ill-conceived, has proven insufficient. Unfortunately, the New Strategic Framework fails to adequately address most of Convention’s most significant weaknesses. Ratification of the Ban Amendment and Liability Protocol in addition to significant tweaks, particularly in the arena of compliance, will likely afford the Basel Convention an opportunity to position itself to face the emerging issues of international trade and achieve a reduction in the transboundary movement of hazardous waste over its third decade.

The Curious Case of Earth’s Survival v. The World’s Development

The over exploitation of marine life is the first part of the planetary crisis. The second part of the crisis arises because man is ambitious and cannot be stopped from progressing everyday. This creates a dominoes effect, by raising concerns about species dependent on marine life, which would be everybody else. This threat on marine life along with hitherto unprecedented levels of development on a very fragile earth can lead to a very bleak future. Development and progress have made the world a smaller place. Development and progress have also ensured that there isn't so much of the earth left to go around. The nations of the world have always agreed that developing sustain ably and with precaution is the only way forward if we are to have a future. We come to a juncture where what is legally sound may not be morally acceptable. Here arises the problem of balancing. This paper considers the earth’s journey from the Stockholm Conference of 1972 and The Rio Declaration of 1992 to marine life and international trade issues faced by us today. It draws conclusions by tracing the evolution and the competition between the two parts of the planetary crisis. The paper offers an alternative story of the future, if the balance is not maintained between international norms and development by the nations of the world, by bringing forth paradigm shifts in the planetary crisis between ambitious nations and the survival of the living earth.

Consumer Complicity with Counterfeits: Fight or Flight—Addressing the Intellectual Property Issues in International Trade

Counterfeiting is an increasingly significant cost of international trade. Consumer complicity contributes to this cost of trade but is often overlooked in trade strategies. The authors identify and analyze the issue, providing specific tools for international executives to identify and counteract consumer complicity. Among the recommendations are how to demystify fakes, adopting creative supply chain solutions, countering complicity, and exposing the criminal aspects of counterfeit trade. Specific recommendations are made for trade in pharmaceutical products and film.

International Trade and Plant Protection Issues: Example of Plant Quarantine Law of the Russian Federation

In the context of the Russian Federation’s significant trade relations in plants and plant products with other countries, the Russian Federation Law on Plant Quarantine was reviewed in comparison with the International Plant Protection Convention (IPPC) and the EC Plant Health Directive (2000/29/EC). The Russian Law dates from 2001 when the current version of the IPPC (‘1997 revision’) was already in place but basically adopts the plant health principles of the previous version. Hence, some key provisions of the 1997 version that bring the IPPC in line with the Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement) of World Trade Organization (WTO) are lacking. Overall, the Law is not an obstacle to trade in plants and plant products in itself, but the lack of details in such important matters as pest risk analysis (PRA) suggest that barriers could arise in the interpretation of the Law or in its application through (secondary) normative acts.

Information Policy and Genetically Modified Food: Weighing the Benefits and Costs

The labeling of genetically modified foods (GMFs) is the topic of a debate that could dramatically alter the structure of the U.S. and international food industry. The current lack of harmonization of policy across countries makes GMF labeling an international trade issue. The U.S. and Canada do not require GMFs to be labeled unless the GMF is significantly different than the conventional food or the GMF presents a health concern. However, many other countries are requiring GMFs to be labeled. This paper discusses empirical work on the sources and magnitude of benefits and costs from labeling programs, with particular emphasis on the impact of the design of the labeling program on benefits and costs.

What is New in Protectionism? Consumers, Cranks, and Captives

The most contentious international trade issues currently arise not from traditional producer requests for protection, but as a result of consumers and other economic agents asking governments to erect trade barriers. The economic model that underpins multilateral trade policy—as manifest in World Trade Organization (WTO) agreements—only predicts that firms will lobby for protection, with no provisions for how governments faced with requests for protection from other groups can respond. Consequently, governments have been forced to defend the imposition of trade barriers using spurious justifications; the WTO dispute mechanism has largely dismissed these justifications, and consumers (and others) feel disenfranchised. The result has been a loss of credibility for the WTO and sometimes its demonization. The WTO needs to change but a new economic model must also be developed to deal with a broader spectrum of protectionist interests. À l'heure actuelle, les questions de commerce international les plus litigieuses ne sont pas alimentées par des producteurs traditionnels qui demandent des mesures protectionnistes, mais plutôt par des consommateurs et d'autres agents économiques qui demandent que les États érigent des barrières commerciales. Le modèle économique à la base de la politique commerciale multilatérale – manifeste dans les accords de l'Organisation mondiale du commerce (OMC) – prévoit seulement que les entreprises exerceront des pressions protectionnistes, sans disposition sur la réaction possible des États qui sont confrontés à des demandes de protectionnisme provenant d'autres groupes. En conséquence, les États ont été forcés de défendre l'imposition de barrières commerciales en utilisant de fausses justifications. Le mécanisme de règlement des différends de l'OMC a en grande partie rejeté ces justifications, et les consommateurs (et autres agents économiques) se sentent privés de leurs droits. L'OMC a ainsi perdu de sa crédibilité et est parfois diabolisée. L'OMC doit être revue, mais il faut également élaborer un nouveau modèle économique pour tenir compte d'un large éventail d'intérêts protectionnistes.

Governor James J. FlorioA Fighter for Environmental Issues

The article discusses the political career and environmental advocacy of former New Jersey governor James J. Florio. The author describes Florio's early political career and how he championed environmental issues long before the issue was seen as one of national importance. During his time in office, Florio was recognized as an authority on environmental, health care, energy and international trade issues. While serving in the U.S. Congress from 1974 to 1990 he authored the Comprehensive Environmental Response, Compensation, and Liability Act, also referred to as the Superfund Program. As governor of New Jersey, Florio signed the Clean Water Enforcement Act of 1990 into law. Many saw the law as a precursor to the federal Clean Water Act.

Exploring on Chinese Foreign Trade Issues Based on E-Business

Vigorous development of e-business in the world has produced profound influences upon foreign trade. While China’s e-business has started late, its application in foreign trade has certain distance from that in developed countries. If China intends to be a strong country in the aspect of trade in the 21st century, e-business must be greatly developed in the field of foreign trade. In this paper, the author anatomizes the application status quo of e-business in Chinese foreign trade and some existing problems through analyzing the effects of e-business on the international trade, that is, safety and conceptual issues for e-business, construction issue for information infrastructure, and legal system establishment issue. Finally, the author puts forward solutions and suggestions for promoting the application of e-business in Chinese foreign trade, such as changing concept and realizing importance of e-business, strengthening of network safety management, establishing and perfecting Chinese legal regulations for e-business, and continual strengthening of information infrastructure construction, etc..

Distinguished Fellow of the Economic Society of Australia, 2008: Alan Woodland

This citation acknowledges Professor Alan Woodland as an eminent Australian economist and surveys his exceptional international record of scholarship and research with a selection of his insightful contributions to the understanding of the complex issues of international trade, taxation and welfare. These issues are at the forefront of our nation’s economic priorities and it is appropriate that we formally recognise his outstanding contributions to the discipline study of economics with the award of Distinguished Fellow of the Economic Society of Australia.

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Introduction

Opportunities of Reforming the WTO: Resistance and Potentials of Change

This paper intends to show both that a reform of the WTO is severely needed in order to establish a fairer international trade order but also that it is possible. The first section of this paper analyzes the functioning and the most controversial rules of the organization. The second and third sections intend to look for current opportunities of reforming the WTO by analyzing the main existing critical responses to the institution’s deficiencies—namely coalitions of southern Nation-States and global civil society movements—and their potential to achieve some change. It is concluded that these two key group actors, while playing different roles, do have common goals on selected issues of international trade and if so, their combined negotiating power is considerably increased for achieving a progress in the direction of a positive reform of the WTO for the developing world.

Getting heard in Tibet1: Music, media and markets

This article is an ethnographic study of the production of recorded music and popular music culture in Tibet, examining who gets their voice heard and how, and the roles played by the state, the independent realm that has emerged since the late 1980s, and the illegal/pirate sphere that has also resulted from economic liberalisation. While the question of IPR violations in China has become a global issue, it is largely discussed in the context of big, multi‐national business. This article examines the little known implications of China’s IPR and piracy issues for the production of minority culture. Since the 1950s, the debate on Tibetan culture has centred on issues of political repression. This article aims to open up socio‐economic factors and international legal and trade issues as crucial to the question of cultural expression and identity in Tibet, now China is connected to global capitalism.

International Trade in GMOs and GM Products: National and Multilateral Legal Frameworks

This publication, one of a series of UNCTAD studies which discuss key international trade and development policy issues, focuses on the trade implications of the application of biotechnology techniques in agriculture and the use of genetically modified organisms (GMOs) and products derived from them. Topics considered include: domestic legislation on agro-biotechnology in selected developed and developing countries; the multilateral legal framework, including the Cartagena Protocol on Biosafety; actual and potential GM-related trade disputes.

Adding value in the organic sector: Characteristics of organic producer–handlers

AbstractSales of organic food have soared over the past decade. Although nearly all organic commodities pass through the hands of at least one intermediary on the way from the farmer to the consumer, there is a dearth of literature examining organic food marketing, especially for the middle section of the supply chain. This paper uses new survey data on organic intermediaries (organic handlers) to characterize firms that are certified to both handle and produce organic foods, or organic producer–handlers. Because of their direct link to the production level, the producer–handler has the potential to provide insight into value-added activities in the organic sector. A logistic regression is estimated in order to identify characteristics that make it more likely that a firm would be both a certified organic handler and a certified organic producer, while survey results are also used to describe some of the main challenges these producer–handlers face in handling their products. Organic producer–handlers ranked problems with ingredient procurement and supply and international trade issues as the highest barriers to growth. The model indicated that with few exceptions, many of the operational and procurement characteristics of organic producer–handlers are comparable to the entire organic handling population. However, those facilities dedicated solely to organic handling and those certified longer are more likely to be organic producer–handlers. Use of direct markets by organic handlers has the most robust relationship in the model, although marketing to natural products independent retailers and wholesalers are also important.

Explaining Variation in the Use of NTBs in Developed Countries: The Role of Political Institutions

Despite the much-touted celebration of the successes of the General Agreement on Tariffs and Trade/World Trade Organization in liberalizing free trade, these successes have been limited due to the increasing use of non-tariff barriers (NTBs) as a form of ‘protectionism in disguise.’ Among advanced industrial economies, the use of NTBs varies considerably. The purpose of this paper is to explain what accounts for this variation. We locate the issue of international trade in its appropriate theoretical context — as a two-level game in which politicians simultaneously face pressure at the international level to fulfill commitments to international free trade agreements, and domestic pressures for protectionist relief. We conduct a statistical analysis using a simple, multivariate regression model examining data at three points in time, 1988, 1993, and1996, to highlight the causes of the rise in NTBs and variation in their usage. We hypothesize that PR-based systems are associated with lower rather than higher levels of NTBs.

EU Trade Policy and Non–Trade Issues: The Case of Agricultural Multifunctionality

Non–trade issues are gaining increasing importance in the EU’s trade policy. The case of agricultural multifunctionality is an example of the EU trade policy’s approach in dealing strategically and structurally with non–trade issues in international trade. In the context of the Doha Round, the concept has been of minor direct importance despite its prominent rhetorical promotion at the beginning of the negotiations. Indirectly, the concept has had a more significant impact on the negotiations as it allows the EU to maintain an overall high level of agricultural subventions due to its compliance with WTO rules of non–trade-distorting support. This indirect impact, however, weakens the EU’s negotiating position as it focuses the discussion on traditional agricultural support and puts the EU in a defensive position instead of allowing an offensive promotion of its concept of agricultural multifunctionality. It can furthermore be argued that the strategic use of multifunctionality in the Doha Round does not generally support the EU’s negotiation objectives due to divided competitive advantages on multifunctionality among WTO Members. One of the EU trade policy’s strategies in facing this situation can be found in a shift of agricultural non–trade concerns beyond the WTO framework towards a level of legally non–binding, private–market regulation. This shift can also be seen in the structural impact of agricultural multifunctionality on EU trade policy, illustrated by the semi–formal Civil Society Dialogue of DG Trade and the European Commission’s Corporate Social Responsibility initiatives.