Free Trade Research Articles

Article: Waking the Sleeping Lion: The China-Ecuador FTA and Its Implications

This paper examines the Ecuador-China Free Trade Agreement (FTA) and its broader implications for Ecuador’s economy. It discusses the context in which Ecuador pursued the FTA, highlighting the competitive pressures from neighbouring countries like Peru and Colombia, which had already secured similar agreements. The analysis includes a comparison between the Ecuador-China and Peru China FTAs, focusing on key aspects such as tariff classification, rules of origin, and customs regulations. The paper also explores the potential economic benefits for Ecuador, including market access for its export products and the expected impacts on sensitive sectors. However, it raises concerns regarding the flexibility and potential risks associated with the agreement, such as undervaluation of Chinese goods and the challenges of maintaining competitiveness within the Andean Community (CAN). The paper concludes by questioning whether the FTA will deliver the anticipated economic growth and whether it sets a precedent for future trade negotiations within the region.

Trade as a commerical determinant of health: The health impact of a free trade agreement on Wales

Abstract As a result of the UK’s withdrawal from the European Union (‘Brexit’), the UK can negotiate its own trade agreements for the first time in over 40 years. This includes the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP). Public Health Wales undertook a mixed-method Health Impact Assessment (HIA) to assess the potential impact of the CPTPP on health, well-being and inequalities in Wales. It is only the second ever HIA carried out on a free trade agreement (FTA) globally. A literature review on the potential impact of the CPTPP on health was conducted. Qualitative interviews with cross-sectoral representation, such as the environment, were undertaken alongside the development of a community health and demographic profile. The HIA identified significant potential impacts across health determinants, e.g., employment, agricultural production and health care, as well as impacts on population groups, e.g., those on low incomes. The Investor State Dispute Settlement (ISDS) mechanism, economic uncertainty and loss of regulatory alignment were identified as potential pathways for health impacts to affect the population. The HIA highlighted trade as a key commercial determinant of health. The findings have been beneficial in informing policy and decision-makers to prepare for the implementation of the CPTPP and take action to maximise opportunities and prevent potential negative impacts. Communicating HIA evidence that links trade to health has also led to valuable cross-sector and cross-UK engagement and sparked a “rethinking” of trade through a well-being economy lens where health, well-being and sustainability are primary objectives. This work has demonstrated the value of a HIA approach to FTAs by mobilising a range of evidence through a transparent process, resulting in transferrable learning for others as well providing an entry point for public health to have direct engagement with trade negotiators and those participating in trade discussions. Key messages • Trade agreements are a key commercial determinant of health across health behaviour, policy and economy. • Multiple population groups are affected by trade agreements both positively and negatively.

Between abolition and opium: civility and force across Asian and Caribbean British imperialisms

ABSTRACT This paper explores the relationship between Britian’s abolition of slavery in its Caribbean colonies in 1838 and its instigation of the First Opium War with China in 1840. In so doing, it works against the occlusion of this relationship in the study of British imperialism despite the centrality of these events to the birth of global systems of free trade and free labour. It draws on the parliamentary debates and correspondence of British Foreign Secretary Lord Palmerston to analyze Britain’s negotiation of anti-slavery efforts with Haiti and its trade of Indian opium with China. It argues that these negotiations position British masculine civility against less-civilized foreign others in ways that legitimate the use of maritime force. This logic of imperial civility produces contradictory effects by demanding an end to the brutality of African enslavement while condoning the devastation of Asian opium addiction enacted in the name of free trade.

The window of opportunity: a case study of the battery electric vehicle in Thailand

Purpose Thailand, although a late entrant, has emerged as a significant center for the production and export of internal combustion engine (ICE) vehicles in Asia. With the arrival of a disruptive battery-electric vehicle (BEV), this study aims to investigate whether Thailand can exploit this window of opportunity to leapfrog. Design/methodology/approach This paper uses data sourced from Thailand’s Department of Intellectual Property to analyze electric vehicle (EV) patent applications. This paper collected qualitative data and conducted interviews with several EV manufacturers. Findings Although Japanese automakers dominate essential EV technology patents, they trail behind Chinese automakers, which benefited from the Free Trade Agreement (FTA) in EV sales. The incumbents, Japanese and Western, choose to expand their production of hybrid electric vehicles (HEVs) and plug-in hybrid vehicles. ICE technology does not constrain new entrants, such as Chinese automakers, Japanese newcomers and Thai newcomers. Compared to Japanese carmakers stuck with ICE and HEV technologies, they have been transitioning to BEVs at a faster pace. BEV has opened the door for large Thai indigenous energy corporations to enter the automotive industry by focusing on niche areas (nonfour-wheel vehicles) and supporting businesses like charging stations. In summary, Thailand has successfully attracted foreign direct investment (FDI) into the EV sector, but it has not yet succeeded in developing indigenous technologies related to EVs. The Thai automobile sector fails to leapfrog because it is too tied up with Japanese automotive production networks and has an unfavorable FTA with China. Originality/value This study sheds light on the limitations of an industrial development strategy relying on openness to trade and FDI without adequately strengthening indigenous technologies and firms, as the country adopting the strategy fails to leapfrog when the window of opportunities created by disruptive technologies arrives.

Assessing the evolution and perspectives of developing the russian export in current terms: adoption of the 4P model

The study’s relevance is caused due to the Russian export experiences, which acts as a research subject. Goal is to reveal current peculiarities of Russian export. As methodical tool the model of marketing mix was applied, which includes product, price, place, promotion. The analysis has shown: the Russian economy, to promote its export in new terms, uses marketing with new characteristics. The bigger are become the share in it of agricultural and metallurgical products, the share of developing countries among buyers. Promoting the export is provided including through the free trade zones of the Eurasian economic union with the third countries, common trade and cooperation areas with them. State support for import substitution assists to create the production able to export. Scientific contribution of the research results consists in that they expand application of micro-economic marketing mix model on export of national economy as a whole. The results received make possible to study in complex and simultaneously in detail the strengths and weaknesses of export, including the volume and structure of export, price dynamics, currency and financial, transport, trade and diplomatic peculiarities of sale.

Analyzing and Strategizing the Emergency Language Landscape: A Case Study of Sanya City, China

The construction of language landscape for urban emergency services is an important part of public services. As a current city for the construction of Hainan Free Trade Port, Sanya City has a unique natural environment and is also a hotbed of various natural disasters in island cities. The challenges faced by emergency language services in Sanya City are not only how to effectively communicate emergency information to domestic citizens, but also how to cross language and cultural differences to ensure that all tourists can understand and follow emergency instructions. Against this background, it is of great significance to study the emergency language landscape of Sanya City.

Research on the Path of Further Deepening the Reform and Internationalization of English Education in the Hainan Free Trade Zone

With the establishment of the Hainan Free Trade Zone (FTZ), the internationalization of English education has become a key element of the region’s educational reform efforts. As globalization intensifies, fostering an internationalized English education system is crucial for improving the competitiveness and global positioning of the Hainan FTZ. This study explores the multiple pathways and strategies for promoting the internationalization of English education in the Hainan FTZ, focusing on aspects such as policy support, curriculum reform, teacher training, international collaboration, and the effective allocation of educational resources. By examining the current state of English education in the region, identifying key challenges, and drawing insights from successful domestic and international cases—particularly from free trade zones elsewhere—this paper offers actionable recommendations. These suggestions aim to enhance the region’s educational outcomes, thereby bolstering the Hainan FTZ’s broader objectives of economic growth and enhanced global connectivity. The proposed strategies also seek to elevate the international stature of the Hainan FTZ as a regional hub for talent development, international exchange, and soft power enhancement.

Impact of the Belt and Road Initiative on the United States’ textiles and clothing imports from Asian countries: Evaluating the significance of Chinese aid and ACFTA

This study analyzes how Chinese aid and the ASEAN-China Free Trade Area (ACFTA) within the Belt and Road Initiative (BRI) impact Asian countries’ textiles and clothing (T&C) exports to the United States (US). The BRI is viewed as a hub-and-spoke network, with China as the central hub providing resources to the spoke countries along the Belt and Road region. These resources are intended to improve trade infrastructure and attract export-oriented foreign direct investment in the T&C sector. Utilizing an extended gravity model with a panel dataset, the study examines the effects of Chinese aid and ACFTA on the US T&C imports from 16 Asian economies between 2008 and 2019. The findings, obtained through the application of the feasible generalized least squares method, indicate a positive impact of Chinese aid and ACFTA on T&C exports. Policymakers are advised to leverage the BRI to stimulate T&C sector growth for export purposes, thereby creating more value for all stakeholders.

The Many Republics of Hunger

This article is the Sixth Sam Moyo Memorial Lecture delivered by Professor Utsa Patnaik during the SMAIAS/ASN Summer School on January 16, 2023, in Harare. Professor Patnaik argues that the discourse in development economics is so completely dominated by fallacious ideas emanating from the conservative economics departments of universities in advanced industrial countries, and economists in the Global South tend to be so completely hegemonized by these fallacious ideas that they pay little or no attention to long-term trends in their own economies that impact adversely the welfare of the poorest of their own populations. A most important long-term trend—to be precise, the trend over the last four decades of neoliberal policies—has been the declining per capita consumption of food grains in countries of the Global South, associated with their increasing opening up to free trade under the incessant pressure of industrial nations.

Assessment of the Current Situation and Solutions to Attract Australian FDI Capital to Vietnam in the Context of International Integration

Foreign Direct Investment (FDI) has played a pivotal role in Vietnam’s economic transformation, significantly contributing to industrialization, job creation, and export growth. Since the introduction of the Law on Foreign Investment in 1987 and Vietnam’s accession to the World Trade Organization (WTO) in 2007, the country has emerged as a leading destination for foreign investors in Southeast Asia. Key sectors attracting FDI include manufacturing, real estate, and services, which have driven economic development and facilitated Vietnam’s integration into the global economy. Despite these successes, challenges remain that hinder FDI’s full potential, including administrative inefficiencies, complex regulations, corruption, and inadequate infrastructure. The shortage of highly skilled labor, especially in technology-driven fields, also limits the country's ability to attract higher-value FDI projects. Moreover, there are regional disparities in FDI distribution, with major urban centers like Ho Chi Minh City and Hanoi receiving most investments, while rural areas are often overlooked. The impact of new-generation Free Trade Agreements (FTAs), such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), is also examined. These agreements enhance market access, legal protections for investors, and reduce trade barriers, making Vietnam increasingly attractive for high-tech and service industries. This paper assesses the current FDI landscape in Vietnam, identifying opportunities and challenges for foreign investors. Recommendations include simplifying business procedures, implementing anti-corruption measures, improving infrastructure, and enhancing workforce training to address skills gaps. By adopting these reforms, Vietnam can attract higher-quality investments, strengthen ties with global supply chains, and foster sustainable economic growth. Additionally, the research emphasizes the importance of building stronger partnerships between FDI enterprises and local firms to ensure the widespread distribution of investment benefits across the economy. With a more favorable investment climate, Vietnam can reinforce its position as a premier destination for global investors and enhance its role in the international market.

AI can help humans find common ground in democratic deliberation.

Finding agreement through a free exchange of views is often difficult. Collective deliberation can be slow, difficult to scale, and unequally attentive to different voices. In this study, we trained an artificial intelligence (AI) to mediate human deliberation. Using participants' personal opinions and critiques, the AI mediator iteratively generates and refines statements that express common ground among the group on social or political issues. Participants (N = 5734) preferred AI-generated statements to those written by human mediators, rating them as more informative, clear, and unbiased. Discussants often updated their views after the deliberation, converging on a shared perspective. Text embeddings revealed that successful group statements incorporated dissenting voices while respecting the majority position. These findings were replicated in a virtual citizens' assembly involving a demographically representative sample of the UK population.

Macroeconomic Determinants of Foreign Direct Investment Inflow in Laos

This study aims to study macroeconomic determinants of foreign direct investment inflow in Lao PDR, which includes macroeconomic variables such as gross domestic product growth rate (GDPGRO), government investment spending (GI), exchange rate (EXR), inflation rate (IFR), interest rate (IR), openness trade (OPTR) and money supply (MS) from 2001-2022. This results found that: The foreign direct investment inflow has 12,298.57 million US dollars on an average per year is equal to 559.03 million US dollars and has an average growth rate of 4.73% per year, for the public expenditure used to investment is increasing every year with an average growth rate of 10.96% per year. The exchange rate of kip per US dollar has an increasing trend but overall there is a growth rate equal to 1 digit only in 2022 there is a growth rate equal to 2 digits which is equal to 45.94%. For the inflation, the growth rate is 6.33% per year, which is the year with the lowest inflation rate is 2017 which is equal to 0.83% and the year with the highest inflation rate is 2022 which is equal to 22.96%, The decreasing trend in which the year with the highest interest rate on US currency loans is 2002 which is equal to 13.5% and the year with the lowest interest rate on US currency loans is 2011 which is equal to 8.15%, the open trade has an increasing trend. The year with the highest increase in 2021 is equal to 77.91% of GDP and the money supply is increasing every year. For the analysis of macroeconomic factors to foreign direct investment, it was found that the economic growth rate of gross domestic product (GDPGRO), public investment expenditure, the exchange rate of kip per US dollar and the money supply have a positive coefficient and reject the null hypothesis with a statistical significance level of 0.01 and 0.05 indicates that it is a doubtful factor for foreign direct investment to increase. Meanwhile, the inflation rate has a negative coefficient and rejects the null hypothesis at a statistical significance level of 0.05, which is a factor that reduces foreign direct investment transfers. For the interest rate in dollars and the open trade, there are accepted null hypothesis, it shows that there is no effect on the transfer of foreign direct investment.

The place of customs law in the law system of Ukraine

The article reveals the place and role of customs law in the legal system and describes the relationship between customs law and other branches of Ukrainian law. It is shown that customs law has a mixed legal nature. After all, customs law has characteristics of both the public and private branches of law. On the one hand, customs law has an administrative nature, as it regulates the activities of customs tax collection bodies that implement state customs policy, state policy in the field of combating offenses during the application of legislation on state customs matters. On the other hand, private relationships regulated by customs law, in particular, the implementation of various types of business activities in the customs control zone (opening a duty-free trade store, opening a customs warehouse), the activities of customs brokers, the provision of paid services by revenue authorities, are gaining great importance. It is argued that customs law acquires a special importance for every citizen and at the same time ensures the interests of the entire society in the sphere of movement across the customs borders of our state of material and spiritual values, assets of world and Ukrainian science and culture, results and processes of economic activity, labor and intellectual assets, tourist , communicative and worldview interests. It was emphasized that in the difficult conditions of the Russian-Ukrainian war, customs law is of great importance for the state, as it protects its economic interests. Accordingly, the customs law of Ukraine performs the following tasks: normative support of the customs policy and customs affairs of the state; determination of the legal status of subjects of customs relations; establishment of responsibility for violation of customs rules and customs legislation and the procedure for their application; determination of the order of creation, reorganization and liquidation of customs bodies; consolidation of the legal and organizational foundations of the movement of goods and other items across the state border of Ukraine; regulation of the customs control procedure; establishing the procedure for collecting customs duties and other taxes, the procedure for customs clearance of goods, including the declaration of goods and other items; implementation of complex control over currency transactions; ensuring the implementation of measures to protect the interests of consumers of goods and compliance by participants in foreign economic relations with state interests in the foreign market; ensuring the implementation and development of international cooperation in the customs sphere. In general, customs law is a complex branch of law, a system of legal norms that regulate social relations related to the movement of goods and vehicles across the customs border of Ukraine. In the difficult conditions of the Russian Federation’s full-scale war against Ukraine, the role of Ukrainian customs law has significantly increased, thanks to which effective logistics have been established in Ukraine, through our border in the west and south of the country there is constant export and import of goods necessary for the support of the Armed Forces of Ukraine and the entire Ukrainian people. The value of customs law is that, thanks to it and other branches of law, all processes of crossing the state border of Ukraine took place safely and according to certain rules, the State Customs Service of Ukraine (State Customs Service) functions in Ukraine, which is of great importance for the economic development of Ukraine. The global tasks of modern customs law consist in high-quality regulation of customs activities, because customs today performs one of the important functions - protection of the country’s economic interests and assistance in ensuring state and public security measures.

Транстихоокеанское партнерство и всестороннее региональное экономическое партнерство как международно-правовая модель экономической интеграции в Азиатско-Тихоокеанском регионе

The article explores international law aspects of the contemporary integration processes in the Asia-Pacific with a specific focus on such relatively new formationsas the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP). Based on the WTO law provisions with regard to the free trade areas for goods and services, both Partnerships significantly widen the scope of regulated inter-governmental relationships, which allows considering the TPP and the RCEP as a fundamentally new form of the regional trade agreements. Having a fixed number of participating states and a system of institution with their functions and competencies, the Partnerships do not represent inter-governmental organizations and are vested with no legal capacity or, especially, supranational powers. However, this does not undermine the trade and economic significance of the Partnerships while also making them an attractive model of the soft integration structure between the states having different level of economic development, located in different geographical regions and bound with their own integration obligations under bi- and multilateral (subregional) trade agreements. The founding agreements of the Partnerships are typical “WTO plus” arrangements combining the provisions on liberalization of trade in goods and services with the parties’ mutual obligations in the fields of investments, sustainable development, competition, administrative and legal cooperation. At the same time, applicability of parallel bi- and multilateral trade agreements between the Asia-Pacific states, including those within ASEAN, forms a complex multilayer regulation of foreign trade and entails a risk of legal uncertainty for economic operators.

Secular variation and risk factors of preterm birth in Hainan, the Free Trade Port in China from 2010 to 2021

ObjectivesPreterm delivery rates have increased obviously worldwide over the past decade, yet reliable epidemiological studies on the incidence of preterm birth and temporal trends are not available in Hainan, The Free Trade Port in China. We aimed to describe the rate of preterm birth and trends between 2010 and 2021 and to primarily explore risk factors associated with preterm birth in Hainan, China.MethodsThis was an observational study was based on data from the Hainan Provincial Birth Certificate System (HPBCS) for live births between 1 January 2010 and 31 December 2021. We included pregnancies resulting in at least one live birth, with newborns born at a gestational age of 28 weeks or greater, or with a birth weight of 1000 g or more. The outcome were preterm birth rates and their trends over time. Potential risk factors were collected, including infant gender, maternal age, paternal age, maternal ethnicity, paternal ethnicity, home address, and single or multiple pregnancies. The logistic regression model was used to assess the relationship between preterm birth and potential risk factors.ResultsA total of 1,537,239 live births and 86,328 preterm births were investigated, giving a total preterm birth rate of 5.62%. The overall preterm birth rate increased from 4.47% in 2010 to 7.12% in 2021 (compound annual growth rate [CAGR] 4.32). The CAGR of late preterm birth is consistent with the overall preterm birth rate (4.32%). The fastest growth is observed in the rate of very preterm births (5.53%), while the rate of moderate preterm births exhibits the slowest growth (3.87%). Infant gender, multiple pregnancy, home address, parental age, and ethnicity had significant effects on preterm birth.ConclusionThe preterm birth rate was increasing year by year from 2010 to 2021 in Hainan, The Free Trade Port in China. Incidence of preterm births in Hainan Province in relation to multiple pregnancies, infant sex, parental age, parental race and residential address.

Assessing the impact of the European Union-Vietnam free trade agreement on labor market and employment in Vietnam

PurposeThis study investigates the impact of the European Union-Vietnam Free Trade Agreement (EVFTA) on Vietnam’s labor market and employment outcomes, considering the potential distributional consequences across various groups of workers and regions.Design/methodology/approachA comprehensive quantitative framework is employed, combining the gravity model of trade to estimate the EVFTA’s effects on trade flows, the CISAF_M1 model to simulate sectoral employment impacts and econometric models to analyze the effects on wages and decent work. The analysis draws upon a rich dataset spanning the period before and after the EVFTA’s implementation.FindingsThe EVFTA has significantly boosted Vietnam’s exports to the EU, leading to substantial job creation in labor-intensive sectors such as textiles, apparel and footwear. The agreement has also contributed to wage growth and improved access to social insurance for workers in export-oriented industries. However, the impact on other aspects of job quality is less clear. The distributional analysis reveals that the EVFTA’s employment effects have been relatively balanced across gender but have favored younger and less skilled workers as well as those in rural areas.Originality/valueThis study provides a comprehensive and nuanced assessment of the EVFTA’s impact on Vietnam’s labor market, addressing a gap in the literature on the employment effects of new-generation free trade agreements in developing countries. The findings highlight the importance of considering distributional aspects when evaluating the socioeconomic implications of trade liberalization and offer valuable insights for policymakers aiming to promote inclusive growth in the context of deepening international economic integration.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-03-2024-0236

Public attitudes towards international trade and free trade agreements in the United Kingdom

Public attitudes towards international trade and free trade agreements in the United Kingdom

IMPLICATIONS OF SHARIA ECONOMIC LAW FOR HALAL CERTIFICATION ON IMPORTED PRODUCTS IN INDONESIA

The rapid flow of globalization certainly impacts aspects of life, including the increasingly accessible economic aspect. The magnitude of free trade results in various products entering a country without strict supervision in terms of quality. Indonesia is a country with high export-import activities; this can be seen based on data from the Badan Pusat Statistik (BPS) on Imports of Beef from 2017 to 2021, which shows an increase every year. The size of imported products entering Indonesia is necessary to monitor and check the halalness of these products, considering that the majority of the population in Indonesia is Muslim. This study aims to analyze the position of halal certification of imported goods or products based on the perspective of Sharia economic law. This research uses qualitative methods with data collection techniques and literature study. The results show that the position of halal certification of imported products based on the perspective of sharia economic law has a central position as stated in the Qur'an, some hadiths of the prophet, and other sources of Islamic law for which none of these sources of law reject the existence of halalness to what Muslims need. In addition, the position of halal certification of imported goods in terms of Sharia economic law is also seen as an effort to be in harmony with Islamic teachings, which aim to bring maslahah, not mafsadah, to the people who consume.

ПЕРСПЕКТИВИ ЕКСПОРТУ АГРОПРОДОВОЛЬЧОЇ ПРОДУКЦІЇ З УКРАЇНИ ДО КРАЇН АЗІЇ

The article considers current state of Ukraine's export of agri-food products to Asian countries, detailing its commodity and geographic structure. General socio-economic characteristics of the Asian region have been carried out. The main principles of the functioning of the agro-food sector in Asia in relation with its production and foreign trade are given. The largest exporters and importers of food among Asian countries have been determined according to the latest available data. Total agricultural trade of our country with China, India and Turkey highlighted. The dynamics of bilateral sectoral trade between partners and the key products of Ukrainian production supplied to their markets are considered. Further emphasis placed on the import needs of those food groups or commodity items by the specified countries, which Ukraine is already able to satisfy to a certain extent. An assessment of the impact of war and its negative consequences on the actual exports indicators from Ukraine to Asia during 2022-2023 was carried out. The importance of finding new sales markets and consolidating existing partner trade relations by concluding agreements on free trade was emphasized. It is pointed out the actual impossibility for our exporters to fully use the transport and logistics infrastructure, which affects the quantitative and qualitative indicators of foreign sales. In fact, against the background of the final decline in export revenues, the redirection of products from Asia to the markets of European Union does not have the proper effect and does not compensate for the losses incurred. Development prospects and opportunities for optimizing Ukrainian agri-food exports to Asian markets were given, taking into account the sector's limited resources, short- and medium-term priorities of our industry producers, and existing requests of specific importing countries.

Amendments to Vietnam Labor Law after Two Years of Implementing European-Vietnam Free Trade Agreement

The article presents the labor policy commitments in the Free Trade Agreement between Vietnam and the European Union (EVFTA), analyzes the progress in amending the law related to Vietnamese labor according to the signed commitments, identify limitations and propose some solutions for effectively implementing the commitments in the EVFTA Agreement.