Partnership Agreement Research Articles

Taxation of Private Business Firms: Imagining a Future Without Subchapter K

Subchapter K is a mess. Its history began with the simple idea that a partnership should be treated for income tax purposes as a conduit, obligated to report its income to the IRS and to allocate this income among its partners but not subject to tax itself. Even when subchapter K was enacted in 1954, Congress recognized that the implementation of this simple ideal would not necessarily be simple. Under the 1954 legislation, each partner's distributive share of each item of income, deduction, or credit was usually determined by the partnership agreement, as it might be modified at anytime before the due date of the partnership's return, but if the agreement for the allocation of any item was infected with a principal purpose to avoid tax, the item had to be allocated in the proportions that the partners shared overall taxable income. Although property could generally be contributed to or distributed from a partnership without causing the partnership or any partner to recognize gain, a distribution was treated as a taxable sale, at least in part, if it altered the partner's proportionate interests in unrealizedreceivables or substantially appreciated inventory.Subchapter K has been amended repeatedly since 1954. Over the last 25 years, nearly every substantial revenue act has contained significant changes to subchapter K. Although these amendments responded to a variety of emerging problems and issues, one theme underlies a large majority of them: The flexibility of the original conduit model facilitated devices to shift income, deductions, and other tax attributes from partner to partner and from property to property in ways that Congress found unacceptable. The original conception of subchapter K-flexibility with some limitations-has thus become encrusted with more and more limitations.

The European Union's cohesion policy for the years 2021-2027 in Poland in the face of the fourth industrial revolution

Purpose of the study: The article aims to present the direction of the European Union’s cohesion policy in the years 2021-2027 in Poland in the face of the challenges posed by the fourth industrial revolution.
 Methodology: In the first stage, the analysis and synthesis of the views included in the literature regarding the fourth industrial revolution were made. In the next stage, the most important challenges to public policies in the analysed sphere were presented. The second part of the work analyzes the draft partnership agreement for the implementation of the cohesion policy for the years 2021-2027 in the context of the challenges posed by the fourth industrial revolution.
 Main Findings: The fourth industrial revolution is an ongoing, changing process, which soon will become a challenge in the public policy sphere. The cohesion policy, being the axis of development policies in particular member states of the European Union, includes these changes' assumptions through the support of technological development and changes in the socio-economic structure.
 Applications of this study: The results of this research allow us to decide on the effectiveness of strategic planning and its compatibility with the predicted trends of socio-economic evolution. They also allow verifying the assumptions of the cohesion policy on the regional level.
 The originality of this study: In the following paper, the research on the assumptions of the cohesion policy in the face of the new challenges of the fourth industrial revolution was made. It is worth highlighting that this sphere of the new perspective of the cohesion policy - due to the fact that it is still being shaped- has not been a research subject yet.

The role of the corporate sector in the transformation of the international trade and economic relations system

The article discusses the role of MNCs in the process of transformation of global regulation of trade and international economic relations system. The relevance of this study is determined by one of the key trends in the world economy and the system of international economic relations of the late XX — early XXI centuries — by the process of corporatization of the economic space. There is a desuverenization and corporatization of the national economies of the countries. This process is associated with the increasing dependence of national economies on MNCs and is accompanied by the deepening of the process of corporate globalization of the economic space. The system of economic relations of mega-regional partnerships is the subject of the research. The purpose of the study is to determine the role of MNCs in the process of transformation of global regulation of trade and international economic relations system. There are different methods of scientific knowledge used in the research: comparative-historical, as well as general scientific methods: abstraction, axiomatic method, analysis, induction. As a result of the study, the author identified the key trends in the world economy of the XX–XXI centuries: the corporatization of the economic space, coupled with the desovereignization of national economies. The main findings of the study are: first, the trend towards corporate globalization in the world economy; second, a qualitative changes in the form of organization of trade and economic relations: the transition from globalization to globalizing regionalism — an increase in the number of mega-regional trade agreements, such as the Trans-Pacific Partnership / Comprehensive and Progressive Agreement for Trans-Pacific Partnership, The EU-Canada Comprehensive Economic and Trade Agreement, The Regional Comprehensive Economic Partnership, etc.; third, the crucial role of MNCs in the transformation process of the global trade regulation system; fourth, qualitative changes in the form of relations between corporate sector and state. The results of the study can be used in further research on a given topic.

Perspectives on deployment of humanitarian workers through operational partnerships during the acute emergency health response to the Rohingya refugee crisis in Cox\u2019s Bazar

BackgroundThe unprecedented influx of Rohingya refugees into Cox’s Bazar, Bangladesh, in 2017 led to a humanitarian emergency requiring large numbers of humanitarian workers to be deployed to the region. The World Health Organization (WHO) contributed to this effort through well-established deployment mechanisms: the Global Outbreak Alert and Response Network (GOARN) and the Standby Partnerships (SBP). The study captures the views and experiences of those humanitarian workers deployed by WHO through operational partnerships between December 2017 and February 2019 with the purpose of identifying challenges and good practice during the deployment process, and steps to their improvement.MethodsA mixed methods design was used. A desktop review was conducted to describe the demographics of the humanitarian workers deployed to Cox’s Bazar and the work that was undertaken. Interviews were conducted with a subset of the respondents to elicit their views relating to their experiences of working as part of the humanitarian response. Thematic analysis was used to identify key themes.ResultsWe identified sixty-five deployments during the study period. Respondents’ previous experience ranged between 3 and 28 years (mean 9.7 years). The duration of deployment ranged from 8 to 278 days (mean 67 days) and there was a higher representation of workers from Western Pacific and European regions. Forty-one interviews were conducted with people who experienced differing aspects of the deployment process. Key themes elicited from interviews related to staffing, the deployment process, the office environment and capacity building. Various issues raised have since been addressed, including the establishment of a sub-office structure, introduction of online training prior to deployment, and a staff wellbeing committee.ConclusionsThis study identified successes and areas for improvement for deployments during emergencies. The themes and subthemes elicited can be used to inform policy and practice changes, as well as the development of performance indicators. Common findings between this study and previous literature indicate the pivotal role of staff deployments through partnership agreements during health emergency response operations and a need for continuous improvements of processes to ensure maximum effectiveness.

Trade and welfare effects of a potential free trade agreement between Japan and the United States

This paper addresses the trade and welfare implications of a bilateral trade agreement between the U.S. and Japan. In 2019, the two countries signed a “stage one” trade agreement, with the U.S.-Japan Trade Agreement (USJTA) and the U.S.-Japan Digital Trade Agreement as two small trade agreements. A comprehensive bilateral free trade agreement (FTA) is currently under discussion between Washington and Tokyo, with the U.S. government alternatively joining the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). Based on the theoretical model of Caliendo and Parro (Rev Econ Stud, 82(1):1–44, 2015) , I analyze the welfare gains of such a bilateral FTA in the style of Aichele et al. (Where is the value added? China’s WTO entry, trade and value chains, ZBW-Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz, 2014). I simulate trade and welfare impacts for the USJTA and the U.S.-Japan Digital Trade Agreement, as well as for a deep bilateral FTA. In addition, I examine and compare the welfare implications of the established CPTPP with the scenario of the U.S. or China joining CPTPP. My findings show that Japan’s welfare increases by 0.3% and U.S. welfare increases by 0.14% as a result of the FTA. Welfare of both countries would increase if the U.S. entered CPTPP, with Japanese welfare being even higher if China acceded to CPTPP.

Раскрытие информации венчурными фондами, созданными по договору инвестиционного товарищества

Russia’s private equity and venture capital industry is in the early stages of development. In 2011 the Federal Law on Investment Partnership (335-FZ) was enacted. It brought the best international practices of collective investments into the Russian legal system by making it possible to create venture capital funds through investment partnership. This particular type of funds is the closest in substance to the most popular legal form of globally known venture capital funds which is a limited liability partnership. Significant progress has been made so far in reforming the Russian system of accounting and financial reporting under the IFRS. However, the existing regulations have not been amended to (capture) incorporate accounting and reporting of financial investments, and proper templates for disclosure and reporting by investment partnership funds have not been worked out. The aim of the article is to develop suggestions and recommendations to enhance domestic model of information disclosure by venture capital funds formed under investment partnership agreements. Researching the international practices of disclosure by venture capital funds created as limited liability partnerships allowed to devise financial reporting templates that can be used by domestic venture capital funds formed under investment partnership agreements. These templates proposed in this piece of research can serve as the basis for future industry standards of financial accounting in Russia.

Rise of Geopolitics and Changing Korea and Japan Trade Politics

In the past decade, Korea and Japan have increasingly exhibited different strategic priorities in trade in face of China’s rising global economic prowess and worsening US-China trade conflict. Japan’s trade policy decisions have worked to reinforce its economic and security ties with the US as a means to counter China. Japan has used both bilateral and multilateral means to secure its ties with the US against China. In contrast, Korea’s trade policy positions have been one of ‘strategic ambiguity’. Korea has been more conciliatory towards China, reluctant to take actions that would counter China’s interest. Korea has mainly resorted to bilateral channels to maintain favorable relations with both China and the US. Korea’s reluctance to clearly ally with the US against China has been observed across different administrations with opposing political orientations. This paper examines Korea and Japan’s diverging strategic priorities in trade through the 2017 World Trade Organization Ministerial Conference; the 2017 US imposition of Section 232 on steel; the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Korea-US FTA renegotiation and the Korea-China FTA Phase Two Negotiation; and the 2019 Japan-US Trade Agreement.

Results-based management in practice: Lessons learnt and policy recommendations from the implementation of RBM in European fisheries outside Europe

This paper summarizes the lessons learnt from the implementation of a practical approach to Results-based Management (RBM) within the EU H2020 FarFish project, where RBM is conceptualized as a contract situation. From these lessons a set of policy recommendations for the improvement of the fisheries management through the adoption of RBM for EU vessels fishing in international- and Sustainable Fisheries Partnership Agreements (SFPA) waters were put forward. The policy recommendations are based on key project outputs and additional semi-structured interviews on the experiences of project partners. This exercise revealed advancements and shortcomings for the broader implementation of a more participatory, inclusive, and responsive approach to fisheries governance. Meaningful and effective participation was a pivotal factor for the success of the process. Absence of relevant bodies, sectors and fleet segments proved detrimental throughout all cases. The importance of scoping, goal setting and timing of the actions, as well as managing realistic expectations within the RBM, were highlighted. Data availability and accountability was pivotal, as in cases were cooperation succeeded, data was made available, and knowledge was expanded and enriched. The implementation of this approach to RBM showed great potential when extended to other aspects of fisheries’ management, fishing categories and fleets. This structured approach to RBM provides a promising alternative to current fisheries management systems across the world.

Unpacking the tuna traceability mosaic – EU SFPAs and the tuna value chain

Traceability has been gaining in importance recently and has seen its potential uses within fisheries expanding from primarily food safety to combat illegal fishing and promote sustainability. In the tuna value chain, key processing actors have introduced comprehensive systems allowing consumers to trace products right back to the vessel that caught the tuna and the catch date. Traceability is also an important component of EU SFPAs (Sustainable Fisheries Partnership Agreements). This paper explains the rationale for the EU entering into SFPAs and shows how the current portfolio of SFPAs exhibits an increasing dependence on access to tuna stocks. Utilizing a unique dataset, we present information on area, method of capture and landing site for EU SFPA vessels. We show that there are economic incentives for vessels to misreport, and clear traceability challenges as vessels fish several species and across several areas (both coastal and in areas beyond national jurisdiction - ABNJ). The tuna value chains in Cabo Verde and the Seychelles are then examined from a traceability perspective. As we report, while an EU catch certificate scheme (CCS) operates to cover all tuna products imported into the EU market, there are flaws in the current system which need remedying.

The Investment Game in Private Equity

Abstract Private equity investing and the relationship between the GP and the LPs are plagued with the risk of information asymmetries and agency costs, so the markets have developed several mechanisms to align the incentives of the funds and the investors, most importantly through disclosure and protections in limited partnership agreements. However, such agreements may not always deal with the most important asymmetries or agency conflicts, especially the hidden effort problem. From the fund’s perspective, there are also other relationships that affect its internal dynamics. They are the need for interest alignment between the fund (and the GP) and the managers of the portfolio companies, the risk of financial agency costs and the risk of strategic creditor actions. All of these relationships are regulated primarily by contracts. In this paper, I evaluate the game-theoretical framework, Investment Game, based on the analysis of the GP-LP investment-effort relationship supported by a brief analysis of the other relationships. I argue that, in most cases, the LPs are able to solve the GP effort maximisation problem making part of the fund regulation unnecessary. However, private ordering may not work in some cases. Despite these situations, the Investment Game enables, even when the LPs cannot affect the fund terms, an analysis of the GP effort level and the level of undisclosed private benefits. Therefore, the Investment Game also sets a framework for a data analysis of private equity investing.

Tensions and coalitions: A new trade agreement affects the policy space for nutrition in Vietnam

Global trade has shaped food systems over centuries, but modern trade agreements are hastening these changes and making them more complex, with implications for public health and nutrition transition. This study aimed to understand the impact of the 2018 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on the policy space for public health nutrition in Vietnam. We conducted comparative document review and key informant interviews, and our analysis drew on a framework of policy space and the theory of advocacy coalitions. We identified 10 CPTPP sections with potential public health nutrition implications; and 50 Vietnamese policies relevant to nutrition having one or more tensions with one or more CPTPP sections. A majority of policy tensions were in sections of the CPTPP relating to technical barriers to trade and government procurement; most tensions related to protecting policy-making from vested interests. Different groups of policy actors hold different beliefs and interests on these issues, and therefore promote different framings and policy approaches. We identified two advocacy coalitions working very separately on issues affecting nutrition policy space: a trade coalition holding the policy position that free trade improves nutrition by default; and a nutrition coalition holding the policy position that nutrition should be explicitly considered in trade policy. The policy space for nutrition in Vietnam has important potential constraints through written policy, and the trade and nutrition coalitions will need to interact more regularly and constructively in order to foresee where these tensions will arise in practice, and create plans for their mitigation. This study adds to global evidence of free trade agreement impacts on nutrition policy space, and we extend previous work by explaining these actor groupings in the policy space through the theory of advocacy coalitions.

Duty Evasion in Free Trade Agreements: Norm Emergence and Implications

Despite the failure of states to adopt multilateral rules to address the circumvention of anti-dumping and countervailing duties, efforts have more recently been deployed by the United States to focus on the issue of ‘duty evasion’. After failed attempts to discuss the issue at the World Trade Organization (WTO), the United States–Mexico–Canada Agreement (USMCA) specifically addresses cooperation between Parties regarding information sharing and duty evasion verification requests with a view to ensuring the enforcement of trade remedy laws. Can the elaboration of duty evasion provisions in regional trade agreements facilitate the negotiation of rules to address the issue of anti-circumvention at the multilateral level? This article argues that the motivations and inherent limits underlying the USMCA duty evasion provisions are most likely to impede broad adoption at the multilateral level. It proceeds in two steps. First, while the United States is playing a pivotal role as a norm entrepreneur in the emergence of these duty evasion provisions, the article demonstrates a clear evolution in its strategy toward a populist approach to international economic policy. Second, after identifying similarities with other provisions, the article addresses the lacunae in the USMCA duty evasion provisions from a legal perspective. duty evasion, anti-circumvention, anti-dumping duties, countervailing duties, United States–Mexico–Canada Agreement, Trans-Pacific Partnership Agreement, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, World Trade Organization, norm entrepreneur, populism

Approaches to Digital Trade and Data Flow Regulation Across Jurisdictions: Implications for the Future ASEAN-EU Agreement

In the last two decades the venue of free trade agreements has turned into an important platform for digital trade rule-making. Yet, the approaches of individual states differ profoundly and the emerging data governance regime is deeply fragmented.The article seeks tomap these developments by looking at selected preferential trade agreements (PTAs) and their design. The enquiry focuses on the United States (US) and European Union (EU) approaches and discusses the differing stances with regard to data flows regulation in particular, while highlighting innovative solutions found in recent trade deals, such as the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) and the United States Mexico Canada Agreement (USMCA). The article then provides an overview of ASEAN’s initiatives with respect to electronic commerce. Against this backdrop, the article evaluates the prospects of digital trade related rules in the future ASEAN-EU agreement. CPTPP, electronic commerce, EU FTAs, data flows, digital trade, RCEP, USMCA

Transnational Corporations in Transregional Initiatives: Goals and Problems of Participatio

The activities of transnational business have already become an integral part of the global political and economic development, affecting integration processes in the world. However, the dichotomy of relations between a state and TNC in the context of trans-regional development is not fully understood. The article analyzes the consequences of quantitative and qualitative strengthening of TNC in the world political processes on the example of four major trans-regional projects - the Trans-Pacific Partnership, the Trans-Pacific Trade and Investment Partnership, European Union and MERCOSUR Free Trade Agreement, the Belt and Road Initiative. The authors define the tools promoting each project, which reflect the nature of interaction between states and TNC at the trans-regional level. In addition, the study highlights various objectives of TNC participation in a particular trans-regional association, as well as appropriate resources for the implementation of their interests, which can generally be divided into economic, political and image. To answer the question on how states and transnational business interdepend not only in trans-regional processes but also in the world economy, the authors, based on the practice of modern world politics, construct models of the relationship between states and business and come to the conclusion that the type of interaction these actors use largely depends on states internal political system, as well as their foreign policy goals. Nevertheless, despite the increasing role of TNC as an influential actor in world politics, at the moment it is premature to declare that they are completely independent from states.

Toward an ASEAN-EU FTA: Examining the Trade and Sustainable Development Chapter in the Prospective Indonesia-EU CEPA

The successful outcome of bilateral free trade agreement (FTA) negotiations with individual ASEAN Members can be an important precursor toward the intra-regional FTA between ASEAN and the EU. The EU’s bilateral approach with Singapore and Vietnam appears to be fruitful thus far. Meanwhile the Comprehensive Economic Partnership Agreement (CEPA) negotiation with Indonesia is still in progress. Indonesia’s most important export commodity to the EU, palm oil, epitomises a potential challenge to the CEPA in particular in the area of trade and sustainable development (TSD). This article seeks to explore sustainability-related provisions potentially agreed upon in the Indonesia-EU CEPA which together with EU-Vietnam and EUSingapore FTAs will be a sound indicator for a future ASEAN-EU FTA, and how to deal with the issue of palm oil in the CEPA. ASEAN, EU, environment, FTA, Indonesia, labour, palm oil, sustainable development

Partnership Consultation: An Alternative Solution to the Nonexistent Collective Bargaining Right in the Indonesian Ride Hailing Gig Economy Sector

The absence of gig workers’ right to collective bargaining affects the human rights condition of the app drivers. Previous studies roughly fall into two categories: either employing the drivers as a solution or opting for law-making intervention. This paper fills the gap using a new concept based on the United Nations Guiding Principle of Business and Human Rights by exploring the businesses’ social responsibility realm. This qualitative socio-legal research finds that: (1) the clauses of the standardized partnership agreements contain unequal risks allocations, putting the independent contractors in a lose-lose situation; (2) the inability to determine the substantial domain of the contract marginalizes the partners from exercising the related social and economic rights; and (3) the pre-existed structural problems take part as a coercive forces to the partners’ free will to consent, resulting in a doubtful partnership contract validity. As a solution, the insertion of meaningful partnership consultation, a concept adopted from collective bargaining concept in labor relations, enables better mutual consent arrangement and serves as a preemptive remedy to the human rights impact.

A Study on the Regulatory Similarity between Korea and the CPTPP Member States: Focusing on TBT

Purpose This paper aims to analyze the Technical Barriers to Trade (TBT) of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member countries with Korea to discuss the importance of the regulatory harmonization and convergence between countries and suggest a direction for the response of Korea to the TBT of the CPTPP. Design/Methodology/Approach This study uses Regulatory Distance (RD), a quantitative methodology that can measure the similarity of TBTs across countries and sectors, and Multidimensional Scaling (MDS), which visualizes it, to compare and analyze regulatory similarities between CPTPP and Korea, China, and the US. Findings First, the TBTs introduced by CPTPP member states generally resemble each other and are more similar in the manufacturing sector than in agriculture. Second, the US regulations that led the TPP were relatively similar to CPTPP, but China showed a large regulatory gap with CPTPP members. Third, the Association of Southeast Asian Nations (ASEAN) countries belonging to the CPTPP generally showed the possibility of regulatory convergence due to their close RD. Finally, Korea showed an overall regulation gap with CPTPP members. Research Implications Although numerous domestic studies on TBT have been primarily qualitative, this study appears to be the first to use RD for the quantitative analysis of the TBT. Furthermore, this study suggests that by using RD to identify countries or industries with regulatory gaps, parties conducting RTA negotiations could use this information as a basis for evaluating countries and industries that require harmonization of technical regulations and standards and preparing countermeasures.

Trade with the EU, Variable Geometry and Human Rights in the EAC

The Economic Partnership Agreement between the East African Community (EAC) and the European Union (EU) is of particular importance for the Kenyan floriculture sector. While the other EAC Partner States remain reluctant to ratify this agreement, they allowed the Republic of Kenya to start its implementation under the principle of variable geometry in June 2021. Kenya and the EU then started a strategic dialogue in which they pledged to strengthen their cooperation on human rights issues. This article identifies two priorities for floriculture workers: Kenya’s ratification of the core labour rights Convention No. 87 on the Freedom of Association and Protection of the Right to Organise and the broadening of an enabling space for an active, organised and transparent civil society.

Lithium in International Law: Trade, Investment, and the Pursuit of Supply Chain Justice

ABSTRACT Projected demand for renewable energy storage has underlined the importance of lithium-ion batteries, reflected in concern over ‘supply chain security’ for critical minerals. Yet, other voices have called for ‘supply chain justice’ among governments, firms, and communities affected by the social and environmental externalities of lithium extraction. To anticipate disputes and draw a baseline for further research, this article surveys the relevant rules of international law that presently regulate major operations of the lithium industry. First, the material dimensions of lithium are transformed into a workable object of international law, focusing on viable reserves (as opposed to all proven resources) and the analytical priority of territorial jurisdiction. Second, the regulatory regimes of four States with major reserves—Chile, Australia, Argentina, and China—illustrate recurring challenges, such as incentivizing investment in value-added production and the discontent of Indigenous communities. Third, the trade and investment treaties of these States help us to map an international legal framework for the lithium industry, focusing on the World Trade Organization, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership. But such treaties may be interpreted in light of a State’s obligations concerning human rights, environmental protection, and Indigenous peoples, giving legal form to the pursuit of supply chain justice in the energy transition.

Digital Ecosystems of Organizations

Today we witness the rise of a new type of economy i.e. digital economy, whose foundation is formed by digital ecosystems. The article deals with the idea of digital ecosystems, specific features of their founding and developing. The author describes the pre-conditions of their emergence, which include the development of technology, customer’s desire to meet his/her needs in full and with minimum efforts, the necessity to eliminate geographic barriers and the ambition of business to get bigger profit at the expense of providing extra goods and services to the customer. The article studies the borders, structure and key elements of digital ecosystem. Special role is assigned to the organization – leader. The author shows a scheme of interaction of the customer and the platform and describes the mechanism of transforming data into knowledge in the interaction process. The author puts forward three approaches to shaping digital ecosystems: the development of own services, purchasing of outside ones and partnership agreements. The biggest in the world American and Chinese digital ecosystems were analyzed: Google, Apple, Facebook, Amazon, Alibaba and Tencent. The home experience of building digital ecosystems was investigated, such finance organization as Sber, Tinkoff Bank, VTB and companies Yandex, Mail Group and MTS were discussed. It makes it possible to draw a conclusion that Russian market of ecosystems is still on the stage of shaping, but it has positive prospects of integrating into digital economy being built.