Trade Tariffs Research Articles

Impact of New Member Accession to the European Union on Food Trade

Purpose: The main focus is on the export and import of agricultural products in the EU in the years 2002-2017 outside the EU (extra-EU). Design/Methodology/Approach: This paper investigates the impact of EU (European Union) enlargement on food trade using descriptive statistics. First, EU-28 exports, imports, and trade balance of agricultural products outside the EU (extra-EU) are presented for 2002-2017. Findings: The trade balance between EU countries for food, beverages, and tobacco are also presented. Accession has led to the elimination of trade tariffs and accelerated improvements in trade. The most exported products by EU countries were alcoholic beverages (spirits and liquors, wine, and vermouth), bakery products, and wheat. Most of the export of agri-food products is directed to other EU countries, Russia, China, and various countries in South America, Africa, and Asia. Imports to EU countries comprised mostly of vegetables and fruits, coffee, tea, cocoa, and various fish products. Practical implications: The results will fill in the gap concerning the food trade of agricultural products in the EU. Originality/Value: The new information about extra EU trade of agricultural products and a GARCH (Generalized Autoregressive Conditionally Heteroscedastic) model was presented.

Global and regional trading blocs of coffee and tea: Outlook, trading signals, and policies

AbstractIn world, coffee and tea are the most enjoyable consumer beverages. Drinking coffee and tea reduce the risk of several diseases such as cardiovascular disease, cancer, stroke, type 2 diabetes, and age‐related neurological disorders. This is based on the foreign trade research study, which examines area, production, and exports and imports of coffee and tea globally during the period from 1990–1991 to 2017–2018. CAGR, price elasticity's, instability, and trends of exports and import price analysis were employed for the analysis of the study. The study found that MERCOSUR and SAFTA are the major producers of coffee and tea, respectively, in the world. All regional trading blocs have shown more or less linear trends in the area and production of coffee and tea during the period of 1990–1991 to 2017–2018. Among the countries, Viet Nam and Peru have shown the highest growth rate under the area and production of coffee over the years. Area and production of tea have been increasing in Viet Nam and India over the years. Globally, import prices of coffee and tea were higher than export prices. All trading blocs have shown the mixed trends in export and import price of coffee and tea except the export price of tea in the MERCOSUR, ASEAN, and SAFTA. Export prices of coffee and tea were higher than import price in all trading blocs except EFTA, MERCOSUR, and ASEAN. The terms of trade of coffee and tea were favored in the European Union, NAFTA, COMESA, SAFTA, and Pacific Alliance during the period of 1990–1991 to 2017–2018. MERCOSUR would get benefited from other countries due to the higher export prices of coffee. Similarly, EFTA, NAFTA, COMESA, and Pacific Alliance trading blocs would be profited for tea. Globally, Export price elasticity's of coffee in MERCOSUR and COMESA were marginally higher than imports price elasticity. Export price elasticity's of coffee were found to be marginally higher than imports in the Germany, Italy, and Netherlands (EU); Norway (EFTA); Canada and the United States (NAFTA); Venezuela (MERCOSUR); Australia (ASEAN); Egypt (COMESA); India (SAFTA); and Chile and Peru (Pacific Alliance). Export price elasticity's of tea were found to be marginally greater than the imports in the Italy (EU), Norway and Switzerland (EFTA), the United States (NAFTA), Australia, Indonesia and Thailand (ASEAN), and Chile and Peru (Pacific Alliance). India has the highest average bound duties and MFN applied duties in the coffee and tea in the world. Maximum bound duties and MFN applied duties of coffee and tea were higher in Switzerland. The United States and EU have the highest share of coffee and tea imports. Globally, more number of Sanitary and Phyto‐Sanitary measures and Special Safeguards have been provided to coffee and tea. NTM acts as a policy substitute for import tariffs in the global tea trade. Adapting the climate change plans is very important to enhance the quality and yield of coffee and tea. Training and conferences help to strengthen the capacity building of farmers. Proper price mechanism for coffee and tea land holders must be necessary to receive the higher profits for their produce. Global price fixing mechanism for tea and coffee is essential. This foreign trade study is very helpful for multi‐stake holders, producers, traders, and consumers of coffee and tea globally.

George E. Davis (1850–1907): Transition From Consultant Chemist to Consultant Chemical Engineer in a Period of Economic Pressure

This article explores how George Davis’s vision for chemical engineering was contingent upon both the national economic conditions of the period (1870–1900) and the critical transition to more economic production for chemical manufacture. Trade tariffs and international competition exacerbated an already challenging economic climate and stricter government regulation of pollution from chemical manufactories added further pressure. Sectors of the British chemical industry faced over-capacity and over-production, while most sectors were wasteful of materials and energy and were over-manned. Davis’s motivation was borne of his work as a chemist, as a consultant, and as an inspector with the Alkali Inspectorate. His search for knowledge and understanding was garnered from on-going investigations in the field and in his Technical Laboratory, coupled with developments in equipment and machinery. Recognising his own limited capability to overhaul the British chemical industry, Davis promoted his framework of chemical engineering to increase the cadre of chemical engineers.

Product‐market competition and resource redeployment in multi‐business firms

AbstractResearch summaryThis article investigates how diversified firms reallocate internal non‐scale free resources when one of their product business units (BUs) experiences increased exposure to international competition driven by a sharp decrease in trade tariffs. On average, firms tend to fight, by reallocating resources toward the BU affected by the trade shock and away from other BUs within the same firm. Two variables moderate this first‐order effect with opposite signs. The level of sunk costs of the assets allocated to the BU affected by the shock is a positive moderator of resource reallocation to it. The presence of technological synergies between the BU affected and the rest of BUs instead moderates the relationship negatively. This negative moderation seems to only take place when competition increases the value of technology as a competitive resource.Managerial summaryAn important question in the strategic decision‐making process of diversified firms is how to react to competitive threats that affect one business unit but not the others. Should managers allocate more resources to the affected business or should they instead reduce their commitment and use the same resources in the remaining operating sectors? In this article, we examine firms’ reallocation decisions following increases in foreign competition due to import tariff cuts. Our results show that firms tend to allocate more resources to the business affected by the tariff cut and less to the businesses unaffected. Furthermore, we find evidence that this behavior is positively associated with performance.

Trade tariff, wage gap and public spending

This paper studies the interplay between wage gap and government spending in a small open economy facing a shock in trade policy. We consider a specific factor model with an export sector, which uses skilled labour, and an import-competing sector, which uses unskilled labour. We find the conditions under which there exists an inverse (direct) relation between trade liberalization (protection), which increases (decreases) the skilled-unskilled wage gap, and the level of government expenditure. We also show how either an unbalanced distribution of political bargaining power, or tariff revenue co-financing public spending may break this inverse relation. Moreover, the direct relation between tariff protection and public goods provision can be strenghtened by progressive taxation and weakened by regressive taxation.

PROBLEMS OF TRADE AND ECONOMIC RELATIONS OF WEST AFRICAN COUNTRIES WITH THE EUROPEAN UNION, PROSPECTS FOR THEIR DEVELOPMENT

The problems of trade and economic relations between West African countries and the European Union have been considered in the article in detail, a brief description of the Economic Community of West African States has been given. The essence of relationships between West Africa and the European Union based on the papers, both foreign and domestic researchers in the field of security, regional economic development and integration etc. has been disclosed. The historical path within the framework of international legal documentation that preceded the signing of the Economic Partnership Agreement has been described. The conducted study was based on the analysis of the cost dynamics of exports, imports and trade balance, their structure has been briefly adduced. The main negative aspects faced by West African countries in connection with the implementation of the Economic Partnership Agreement, in particular tariff restrictions, the ban on the use of export taxes, which undermines the national sovereignty of the Economic Community of West African States, have been revealed. Nevertheless, the signed Agreement will allow West Africa to actively integrate into world trade, improve the economic and demographic situation, while the overall trade tariff will remain at the same level.

Imposition of trade tariffs by the USA on China: implications for the WTO and international trade law

PurposeThe increased integration of national economies and the belief that international trade is beneficial to societies has led to the formation of the World Trade Organization (WTO), to regulate the conduct of international trade by national governments. Using US domestic legislation and case laws, as well as the provisions of the General Agreement on Tariffs and Trade (GATT) 1994, the purpose of this paper is to analyze the legality or otherwise of the recent imposition of unilateral trade tariffs by the USA on China.Design/methodology/approachThis paper adopts a doctrinal approach through a critical review of extant legislation and case laws. Drawing from existing literature in the area of WTO and international trade law, the paper argues that the imposition of tariffs by the Trump administration is outside the scope provided for by the WTO rules.FindingsThe paper finds that the imposition of unilateral tariffs by the Trump Government, while in breach of US domestic legislation and case laws, as well as the country’s obligations under the GATT 1994, portends a clear danger to the continued existence of the WTO and to international trade in general.Originality/valueThis paper is an original study of the author, which extends the body of knowledge in the area of international trade law, by analyzing the possible implications of the imposition of trade tariffs by the USA on China and offering suggestions on how the impasse can be resolved.

THE IMPACT OF FREE TRADE BETWEEN ASEAN AND CHINA ON THE INDONESIAN HOUSEHOLDS

Free trade agreement between ASEAN and China was executed in early 2010. Various types of trade tariffs have been removed or lowered to support the agreement which may lead to changes in the welfare of Indonesian households. This research tries to find out the impact of ASEAN-China free trade agreement on the welfare of households in Indonesia. The model used for this analysis is AGEFIS model, a Computable General Equilibrium model of Indonesian economy. The findings of this research show that the free trade between ASEAN and China increases the level of economic activity. Various macroeconomic indicators such as output and exports increase relative to the output prior to the free trade agreement. Income of urban households rise but rural households are adversely affected. Skilled-workers benefits more than unskilled ones.

European chemical firms face industry slowdown

For European chemical companies, 2019 was a year marred by political instability, trade tariffs, and slowing growth. In earnings reports, CEOs stress their companies’ ability to stand up to economi...

Richard Jones: reforming the New South Wales colonial parliamentary electoral system in Australia

ABSTRACT The 1840s in New South Wales, in Australia, was a time of unsettled citizen unrest about the governance of their colony articulated in debates between liberalist and conservative newspapers whilst the Governor looked on. The tone of these debates included reforms to the electoral system, trade tariff, land settlement, and increasing antipathy to the governance administration of the colony. Caught in the middle, the Governor took instructions from London, tried to mediate the situation, before being directed to facilitate the establishment of colonial self-governance for 1856. While considerable aspirational weight by both the Governor and the community was placed on the new Legislative Assembly, the system floundered due to political maturity, its desire to quickly effect change and create reformation, and inconsistency voting allegiances in absence of political parties. The situation was exacerbated by a political gerrymander in favour of pastoralists and squatters to the chagrin of urban Sydney residents and businesses. Within this period of the 1850s, the inaugural Legislative Assembly members like Parkes, Cooper, Cowper, Robertson and Forster honed their debating and oratory skills, and sought to navigate within this new political environment. Within this unsettled period was a seasoned compositor and newspaper journalist, Richard Jones.

Social media sentiment, tariffs, and international equity pricing

Previous research has evaluated the impact of social media on financial market performance. This research investigates the imposition of Trump's trade tariffs and sentiments of President Trump's trade tariff-related tweets on international equity using exchange-traded funds (ETFs). We document that tweets move international equity prices, affect their volatility, and draw market attention. In addition, the impact of Twitter - a social media outlet allowing users to curate information, update followers, and report news in real time to a wide audience - is a function of event randomness, tweets' novelty, and whether an 'influencer' uses this channel of communication to post relevant tweets.

Trump’s New Trade Tariffs: A Response to Voters’ Demands?

AbstractPresident Trump has dramatically changed U.S. trade policy through the adoption of steep tariffs. We argue in this article that even when there are significant geopolitical reasons, Trump’s actions on trade are a response to internal demands resonant with a long history of protectionism. We provide clear evidence of the impacts of social demographics on U.S. trade policy and show that individuals from capital‐intense regions with high educational attainment tend to support protectionism.

Social media sentiment, tariffs, and international equity pricing

Previous research has evaluated the impact of social media on financial market performance. This research investigates the imposition of Trump's trade tariffs and sentiments of President Trump's trade tariff-related tweets on international equity using exchange-traded funds (ETFs). We document that tweets move international equity prices, affect their volatility, and draw market attention. In addition, the impact of Twitter - a social media outlet allowing users to curate information, update followers, and report news in real time to a wide audience - is a function of event randomness, tweets' novelty, and whether an 'influencer' uses this channel of communication to post relevant tweets.

Directions for further improvement of Azerbaijan's position in international comparative ratings on trade tariffs

Directions for further improvement of Azerbaijan's position in international comparative ratings on trade tariffs

India’s Capital Cusp in US–China Tensions

The intensifying trade war between the United States and China has been the focal point of geoeconomics as well as geopolitics, in the purview of the current times. Trump’s unilateral trade tariffs imposed on China and the latter’s retaliation with further duties against the United States has jostled the global trade chains, which has had repercussions beyond the two largest economies. Furthermore, while the G20 summit in Osaka witnessed the US and China returning to the negotiating table to end the tariffs and the Phase One deal between both the countries provided some amnesty, the tensions are much deeper rooted and are far from being resolved. However, as the implications of the trade war move beyond the stratagem of the US–China tug-of-war, many countries like India maneuver through the tussle to find a delicate equilibrium between national interests and global power politics. In this regard, this paper tends to analyze India’s perspective towards the trade war, arguing that New Delhi is taking a non-confrontational, measured approach to surpass the fluid international affairs; in a way that is letting New Delhi shape its decisions on the basis of its national interests and concerns, rather than taking sides.

Trade Barriers and Exports between Western Balkan Countries

Abstract The aim of the paper is to identify the trade barriers imposed by the Western Balkan countries. All barriers, whether tariff or non-tariff, undoubtedly impede the normal development of trade between countries. Therefore, the paper examines merchandise trade patterns in the Western Balkan region and tries to identify the main drivers of and obstacles to intra-regional trade. Intra-regional trade comes second in importance, after trade with the European Union (EU); it underperformed and was in decline in the last few years. In the region with political challenges as the Western Balkans, non-tariff barriers significantly reduce trade exchanges between the countries in this region. Currently, the trade and political disputes (tax rate 100%) between Kosovo and Serbia showed that the imposed tariffs in trade created a political reaction between the countries, interrupting the dialogue between these countries. The originality and value of the paper are reflected in its dealing with such topics as trade barriers, genesis in ethnic and political disputes that are prominent in the Balkan region.

Economic Liberalization in Liberia and Its Effects on Unemployment and Economic Growth

This study sought to establish the status of economic liberalization in the modern Liberia and its impact on unemployment rate and economic growth. The study established different forms of economic liberalisation in Liberia: Liberalization of state owned enterprises, encouragement of free trade, increased deregulation of expert and import as well as regional trade, encouragement of open markets, reduction in taxation brackets, and abolition of trade tariffs and price controls. The study also established that economic liberalisation was significantly associated to reduction in unemployment rate and an increase in economic growth. The study recommends that the new leadership in Liberia should allow for local ownership of SOEs through floating them in the stock exchange through the initial Public Offer (IPO), as well as monitoring its macro- and micro fiscal policies to encourage local production and consumption. Keywords: Economic Liberalization, Economic Growth, Unemployment, State-Owned Enterprises. DOI : 10.7176/JESD/10-18-07 Publication date :September 30 th 2019

A Tale of Two Cities and Trade Policies: Brexit No Deal Scenario and Trade Tariff Hikes

Suggestions regarding impacts of increased and increasing possibilities of a No Deal Brexit Scenario point towards possible consequential effects on interest rate levels – to the extent of decreasing such levels to near zero levels. Brexit has not only impacted the value (exchange rate) of the pound tremendously, but also import prices. In a similar vein, current ongoing trade wars between major economies are likely to affect domestic producers particularly where produced goods are assembled (partly or to a greater extent) abroad in jurisdictions which are affected by the imposition of trade tariff hikes. It is not only likely that prices will increase but that eventual price increases will be passed onto domestic consumers – thus further raising inflation levels. Amidst ongoing uncertainty, such developments have impacted stock markets – with global reverberations and repercussions. Whilst oil import prices are also impacted by different factors such as the value of the dollar, over supply or possible cuts in production, it is not always the case that oversupply or over production automatically implies or necessarily translates into lower prices. As recently reported by the Wall Street Journal (WSJ, Aug 2019), which highlighted that “growth in oil supply is forecast to accelerate in 2020 – in a global wave of production”, it was also emphasized that this would restrict crude prices in a bear market territory – with “possible lower fuel prices” for consumers. The effects of lower interest rates on the central bank’s inflation targeting policies – as well as consumer expectations is also a subject of contentious debates. Whilst lower interest rates are needed to stimulate economic activity – even where it appears that reasons for doing so are not immediately apparent, there are also concerns that such actions may impact consumer expectations by delaying spending in the hopes of lower rates or even worse, trigger fears and concerns amongst investors. The recent decision by the Federal Reserve to reduce federal funds rate by a quarter point amidst dissenting opinions – as well as justifications that this was attributed to “boiling” trade issues which were now regarded as “simmering” not only accentuates concerns about impending ongoing trade tensions, but also reflected possible impacts on global financial markets particularly given the context and basis of the decision. What effects will near zero level interest rates have on inflation targeting policies in the months to come? Why should investors be unduly concerned that ongoing trade wars may generate greater uncertainty than anticipated? Even though chances of a No Deal Brexit Scenario have significantly increased in recent weeks, the Bank of England left interest rate levels unchanged recently (August 2019) – in stark contrast to near zero level expectations – even though it had been widely anticipated (prior to the announcement) that interest rates would remain unchanged. It will be interesting to see how such contrasting developments are justified in the months ahead.

GLOBAL VALUE CHAINS AND RELATIVE LABOUR DEMAND: A GEOMETRIC SYNTHESIS OF NEOCLASSICAL TRADE MODELS

AbstractTechnological advancements and reductions in trade tariffs have made it increasingly profitable for firms to separate their production into individual tasks, creating global value chains (GVCs). The theoretical literature on the distributional effects of GVCs is large, but ambiguous. Since the early conception of Jones' general equilibrium model in 1965, there seems to have been a tendency to repackage (part of) this model, generating apparent conflicts and implicit overlaps. This paper goes back to the basics by using the dual nature of the production model in Jones to provide a geometric exposition of the main channels by which GVCs can affect the relative demand for skilled labour. The explanatory power of this figure is vast. First, it can synthesize the ambiguous literature in a coherent and intuitive framework and show how subtle modelling differences can have widespread effects on key predictions. Second, it can serve as a conceptual framework and as a guide to empirical analysis. Third, it can be used as an illustration of key models explaining global value chains. Ultimately, the proposed figure can be used as a pedagogical tool for policy makers and (under)graduate students alike, without the need to understand complex algebra.

“Fake” Tariff News: Is Corporate America Concerned with Trade Wars?

The effect a trade war would have on corporate America is a widely disputed hot topic. On one hand, the trade dispute may discourage abusive trade practices by foreign companies; on the other, it may hurt American exporters, raise costs for manufacturers, and interrupt companies’ supply chains. We shed some light on this question by examining the language of earnings call transcripts in the April-August 2018 period, the earliest voluntary disclosure by US companies to communicate their views on this topic to investors. We find that the tone of the conference calls in which companies mention trade tariffs is more negative than a matched control sample. We also find that investors do not share in the pessimism expressed by call participants, and actually reward tariff talk with higher but more volatile stock returns. TOPICS:Fundamental equity analysis, legal/regulatory/public policy, performance measurement