Third-party Countries Research Articles

Strategic Subsidies for Green Goods

Globally and locally, government support policies for green goods (like renewable energy) are much more popular internationally than raising the cost of bads (as through carbon taxes). These support policies may encourage downstream consumption (renewable energy deployment) or upstream development and manufacturing of those technologies. The use of subsidies — particularly upstream ones — is disciplined by World Trade Organization agreements, and its subsidies code lacks exceptions for transboundary externalities like human health or resource conservation, including those related to combating global climate change. The strategic trade literature has devoted little attention to the range of market failures related to green goods. This paper considers the market for a new environmental good that when consumed downstream may provide external benefits like reduced emissions. The technology is traded internationally but provided by a limited set of upstream suppliers that may operate in imperfect markets, such as with market power or external scale economies. We examine the national incentives and global rationales for offering production and consumption subsidies in producer countries, allowing that some of the downstream market may lie in nonregulating third-party countries. Although technology producer countries can benefit from restraints on upstream subsidies, global welfare is higher without them, and market failures imply that optimal subsidies are even higher. We supplement the analysis with numerical simulations of the case of renewable energy, exploring optimal subsidies for the major renewable energy producing and consuming regions and the cost of restrictions on upstream subsidies.

Strategic Subsidies for Green Goods

Globally and locally, government support policies for green goods (like renewable energy) are much more popular internationally than raising the cost of bads (as through carbon taxes). These support policies may encourage downstream consumption (renewable energy deployment) or upstream development and manufacturing of those technologies. The use of subsidies—particularly upstream ones—is disciplined by World Trade Organization agreements, and its subsidies code lacks exceptions for transboundary externalities like human health or resource conservation, including those related to combating global climate change. The strategic trade literature has devoted little attention to the range of market failures related to green goods. This paper considers the market for a new environmental good that when consumed downstream may provide external benefits like reduced emissions. The technology is traded internationally but provided by a limited set of upstream suppliers that may operate in imperfect markets, such as with market power or external scale economies. We examine the national incentives and global rationales for offering production and consumption subsidies in producer countries, allowing that some of the downstream market may lie in nonregulating third-party countries. Although technology producer countries can benefit from restraints on upstream subsidies, global welfare is higher without them, and market failures imply that optimal subsidies are even higher. We supplement the analysis with numerical simulations of the case of renewable energy, exploring optimal subsidies for the major renewable energy producing and consuming regions and the cost of restrictions on upstream subsidies.

Environmental Protection for Sale: Strategic Green Industrial Policy and Climate Finance

Industrial policy has long been criticized as subject to protectionist interests; accordingly, subsidies to domestic producers face disciplines under World Trade Organization agreements, without exceptions for environmental purposes. Now green industrial policy is gaining popularity as governments search for low-carbon solutions that also provide jobs at home. The strategic trade literature has largely ignored the issue of market failures related to green goods. I consider the market for a new environmental good (like low-carbon technology) whose downstream consumption provides external benefits (like reduced emissions). Governments may have some preference for supporting domestic production, such as by interest-group lobbying, introducing a political distortion in their objective function. I examine the national incentives and global rationales for offering production (upstream) and deployment (downstream) subsidies in producer countries, allowing that some of the downstream market may lie in nonregulating third-party countries. Restraints on upstream subsidies erode global welfare when environmental externalities are large enough relative to political distortions. Climate finance is an effective alternative if political distortions are large and governments do not undervalue carbon costs. Numerical simulations of the case of renewable energy indicate that a modest social cost of carbon can imply benefits from allowing upstream subsidies.

Global banking, global crises? The role of the bank balance-sheet channel for the transmission of financial crises

We examine whether shocks to leveraged creditors with cross border holdings have an incidence on debtor countries׳ risk of suffering financial turmoil. We construct a new proxy of shocks to international banks׳ balance-sheets using credit ratings and the structure of their international assets. This allows us investigating the effect of (foreign) bank balance-sheet shocks on domestic financial turmoil in a large sample of 146 developed and emerging economies from 1984 to 2011. Our proxies of shocks towards bank balance-sheets are strong predictors of systemic banking crises in their debtor countries. Confirming these results, bilateral bank flows significantly decrease when creditor banks׳ assets are hit by negative shocks, as measured by credit rating downgrades from third-party countries. Short-term liabilities towards global banks appear to increase roll-over and funding risks, thereby amplifying the impact of shocks to foreign lenders’ balance-sheets. Domestic banking sectors vulnerabilities, such as illiquid assets and a low deposit-asset ratio, are found to increase crisis contagion risk. In contrast, a high level of global liquidity attenuates the transmission of shocks to international banks׳ assets to debtor countries.

Effects of Economic Sanction on Financial Markets

This paper seeks to analyze the effects of economic sanctions on financial markets. It will first consider the direct and indirect effects of economic sanctions on the target country, the country imposing the sanctions, and third-party countries. The paper will then narrow down to the indirect effects of economic sanctions on the financial markets of the target country and third-party countries. The paper will then use Pakistan and India as case studies of the impact of economic sanctions on the financial markets and how countries can cushion their financial markets against the adverse effects of economic sanctions. The economic sanctions of 1998 imposed on Pakistan and India affected the financial markets of the two countries differently. On one hand, Pakistan was hit hard by the sanctions, leading to, among other things, a fall in the country’s foreign exchange reserves to $458 million within the first three months and a 28%. depreciation in the open market rate for the Pakistan Rupee (Rs.). On the other hand, India’s financial markets were only affected during the first few days after the announcement of the sanction and then stabilized later on.

Who Else Benefits from CETA? Some Implications of Most-Favoured Nation Treatment

Investors from US and Mexico and other third-party countries will benefit from the Canada-EU trade deal when it comes to investing in Canada, according to a report released today by the C.D. Howe Institute. In “Who Else Benefits from CETA? Some Implications of Most-Favoured Nation Treatment,” respected trade lawyer Lawrence L. Herman concludes that investors from countries that have preferential trade agreements with Canada will be entitled to the same preferential benefits as EU investors under the Canada-EU trade deal.While the recently negotiated trade agreement between Canada and the European Union (EU) will provide greater market access for exports of goods, services and investments from each party to the other, an intriguing question is whether the trade pact will have beneficial side effects for Canada’s other trading partners, by virtue of the “Most-Favoured Nation” rule of internationaltrade law.This E-Brief finds that under the terms of Canada’s WTO membership and Foreign Investment Protection Agreements (FIPAs), the answer is no. However, with respect to investors and investments from the United States, Mexico, Peru, Chile and others with which Canada has preferential trade agreements (PTAs), the answer is yes.

The role of the G20 in governing the climate change regime

A wide array of institutions governing climate change has proliferated over the past years, influencing the rule-makings of the regime. One of them is the G20. When G20 leaders around the world convened in London to restore global economies, they stressed the importance of a ‘resilient, sustainable, and green recovery’ and reaffirmed their commitments to address climate change. This was followed by their agreement on phasing out inefficient fossil fuel energy subsidies over the medium term in Pittsburgh. The ‘coexistence of narrow regimes in the same issue-area’ could be described as ‘regime complexes’, which enable countries to adapt more readily, particularly when adaptation requires complex changes in norms and behavior. Given that responses to climate change would require changes in the domestic politics of different countries at different levels, loosely integrated institutions of regime complexes could be more advantageous for countries to adapt and in engaging with developing countries. This paper demonstrates that the G20’s highly informal institutional setup as well as its flexible cooperation tools could enable its members to customize their policies and better engage with third-party countries. In addition, the G20 group could collectively influence other key countries to reach an agreement on some of the key climate change–related issues, thereby facilitating the United Nations process of climate change.

Transnational ethnic ties and military intervention: Taking sides in civil conflicts in Europe, Asia and North Africa, 1944–99

When politically marginal ethnic groups have transnational ties to co-ethnics in civil conflicts, the countries in which the marginal groups reside are more likely to intervene. Marginal-to-marginal group ties and marginal-to-dominant group ties between a group in a third-party country and actors in civil conflict increase the likelihood of military intervention. Familiar forms of ethnic ties such as politically dominant-to-marginal group ties and dominant-to-dominant group ties are merely special cases of ethnic ties between any group in a third-party country and co-ethnics in civil conflict. The article also presents evidence suggesting that ethnic ties affect how intervening countries take sides. Interveners tend to favour the government in civil conflicts when marginal groups in both countries have ethnic ties. Likewise, ties between two dominant groups are associated with government-biased interventions. In contrast, intervening countries whose dominant group has ties to a marginal group in civil conflict tend to favour the opposition. Overall, the results testify to the importance of including politically marginal groups’ ethnic ties when explaining how third-party countries behave.

Phthalates and food-contact materials: enforcing the 2008 European Union plastics legislation

The migration of phthalates into foodstuffs from food-contact materials (FCM) is a well-known source of food contamination. In 2005, the European Food Safety Authority finalized its risk assessment for several of the classical phthalate plasticizers. In their risk management procedure the European Commission transformed the tolerable daily intakes established by the Authority into legislative limits for phthalates in both plastic and food simulants, while taking exposure from other sources into consideration. These limits have been into force since 1 July 2008. A detailed interpretation of the regulation of these substances was agreed upon in the European network of FCM reference laboratories. This paper reports results from a Danish control campaign of samples collected by official food inspectors and analysed by a newly validated analytical method run under accreditation. Samples were from FCM producers, FCM importers and importers of packed foodstuffs from third-party countries. Products containing phthalates above the current limits were found in several categories of FCM: conveyor belts (six of six), lids from packed foodstuffs in glasses (eight of 28), tubes for liquid foodstuffs (four of five) and gloves (five of 14). More than 20% of the samples analysed contained dibutylphthalate (DBP) or di-(2-ethylhexyl)phthalate (DEHP) above the compositional limits of 0.05% and 0.1%, respectively. Analysis of residual phthalates in metal lid gaskets instead of analysis of phthalates in the food when controlling foodstuffs packed outside the European Union proved to be an efficient and simple control method. All findings of phthalates were associated with the use of plasticized polyvinylchloride (PVC).

L'igiene dei prodotti alimentari nella disciplina europea

- As regards the subject of food product hygiene European Community legislation disciplines hygiene food requirements by means of three regulations passed in 2004, the first Regulation n.852/2004 regards general information, the second n. 853/2004 deals with food of an animal origin, the third n. 854/2004 concerns the organisation of official controls on products of animal origin destined for human consumption. Our attention is focused on the first regulation, due to the fact that, by its application to food products of a vegetable origin, it especially affects Egypt as regards fruit and vegetable exportation to Europe. Egypt is a country which is taken into consideration so as to face the matter of the commercialisation of farm produce towards Europe in view of the establishment of a free trade area within the Mediterranean. The field of application of regulation n. 852/2004 includes primary production as of its definition given in Art. 3 of Regulation n. 178/2002. In Enclosure I it is specified that within the primary production environment, primary products may be transported, stored and handled on the condition that these procedures do not alter their aspects. At this point, the assessment arises as regards the ascribability of certain operations to the three hypotheses and according to the abovementioned condition. Both during primary production phases and throughout subsequent activities, in order to apply community legislation, it is sufficient to carry out one of the phases of the foreseen activities in order to be considered pursuant to Art. 3, n. 2, Regulation n. 178/02. Within the food business the control functions are carried out by the food sector operator. Hygiene rules must be both respected and applied to the entire food chain but also in a different way as regards the primary activities with respects to those carried out subsequently. As regards Third-Party countries, it is accepted that products may be obtained by means of equivalent hygienic rules and however dispensations from community standards are not permitted. As follows you will find a summary of the normative references on the subject of hygiene. Key words: hygiene European Community legislation, primary production, Third- Party countries.

Recruiting foreign doctors to South Africa: difficulties and dilemmas

In 2003, the Medical and Dental Professional Board of the Health Professions Council of South Africa again made it possible for foreign-qualified doctors to obtain registration without sitting an examination. This eased the way for eligible non-South African doctors to work in South Africa in order to assist with the current staffing crisis in rural hospitals. This personal view examines the issues and difficulties related to foreign-trained doctors practising in South Africa, such as short-term practice vs long-term commitment; strategies to promote preparation of local doctors for rural hospital practice; the loss of recruited doctors to third-party countries; the principle of distributive justice in international medical training; and defining acceptable standards of training. The conclusions reached are that while doctors from developing countries, especially from neighbouring African nations, have historically brought a wealth of practical experience to South Africa's rural hospitals, there are also mutual benefits in recruiting from doctors trained in developed countries. The guiding principle is to obtain well-trained and experienced doctors who are able to function in a rural hospital until there are sufficient local-trained doctors. While the article focuses specifically on medical staffing in rural South Africa, the principles discussed apply equally to other health-care professionals and other, similar countries.

The impact of Western forms of social control on China

This paper examines the impact of Western forms of social control on China. It first documents Western influences on Chinese law-making, policing, corrections, legal education, and control techniques under Qing, the KMT, and the CCP. It then analyzes the imperatives on and motivations from the Chinese to borrow Western control ideas and practices through modernization, denial of ethnocentrism, and participation in the world community. The channels through which Western forms of social control break into China are identified as third-party countries, communications, exchanges, and carry-in by imperialists and investors. In the end, Westernization, socialism, and Chinese characteristics are brought together to reflect upon possible changes in Chinese social control between de-politicization and politicization of offenses, pervasive surveillance of thoughts and acts and exclusive control of deviant and criminal behavior, informal and formal justice, crime control and due process, and rehabilitation and just deserts. The central points are: (1) Western impact on Chinese social control is a part of Western dominance in the global political economy; (2) Western influence helps China develop a legal and social control system which lends protection to individual rights but undermines various community-or virtue-based control measures which have proved effective and humane in maintaining harmony and order; and (3) As it continues modernization through foreign investments, trades, technological exchanges, and international participation, China will have to import more Western social control ideas and means to deal with its social reality increasingly similar to that of the West.

Les points chauds des négociations multilatérales du GATT

The Main Issues of the GATT Negotiations - Bodies competing with GATT where the problems of the production and exchange of agricultural produce are debated are increasing in number, making negotiations even more difficult. The conflict between the USA and the EEC is of vital importance for the Geneva negotiations. The USA's attacks on the EEC's exports and their restitutions are not new, but since the recent monetary and economic events they have become clearer : the American market if it is saturated can be closed to subsidized exports and they are threatened in third-party countries where they compete with American exports. The American authorities consider wheat and soya as «r strategic weapons » capable of impressing raw-material-producing countries (in particular oil-producing countries). The EEC, on the other hand, above all France, hopes to reduce the balance of payments deficit, increased by the energy crisis, and wishes to increase its agricultural exports. This leads to conflict between France and the USA. The other 80 countries taking part in the negotiations share on or other of these views. The developing countries, moreover, are trying to have their particular interests recognized. If a common agricultural policy is to continue, Europe must choose one negotiating body and speak with one voice. Any parallel negotiations carried on by one of the member countries would play into America's hands.

Capital Movements and Investment in the European Communities

So far, it has been difficult to obtain an exact idea of international capital movements within the European Economic Community (E.E.C.) owing to the lack of accurate statistics permitting comparisons among the various countries. It is, therefore, impracticable to furnish reliable information on the extent to which the organization of the E.E.C. has had had an effect on the capital imports and exports of the partners to the Treaty of Rome, and to forecast what the future will hold in store. However, it may be taken for granted that any intensification of capital transactions within the E.E.C. will conform to the degree in which the functioning of a Common Market in the fullest sense of the word is accomplished, meaning a market characterized by generous freedom of movement in all transactions relating to persons, money, goods, and capital, and by close coordination of national economic and financial policies capable of functioning satisfactorily in difficult situations. Nobody seems to be able to tell exactly to what degree it will be possible to realize this ideal, although past experiences inspire a fair measure of confidence. During the last few years, financial stability has been consolidated even in those countries of the E.E.C. that a few years previously, from the viewpoint of financial policy and capital transactions, had to some extent still been problem children. -Quite generally, considerable progress has been made in removing impediments to competition. In the event that the realization of the Treaty of Rome-in accordance with the spirit as much as the letter-is really accomplished along liberal lines of thought, it should be possible to anticipate a favorable development of the contribution that the countries bound together in the E.E.C. can make towards world-wide capital transactions. Freedom of movement between the E.E.C. and third-party countries must, in the writer's personal view, be looked upon as an essential sequel to a liberal nonprotectionist order within the E.E.C.; it should, in fact, be a matter of course. Again, the fact that the regional structure of foreign trade among the E.E.C. countries, especially in the Federal Republic of Germany and the Benelux countries, is characterized by world-wide interramification-a trend that it is important not merely to maintain, but to strengthen-affords ground for expectations that the progressive interlocking of capital within the Six will not proceed along exclusive lines. There is all the less reason to be apprehensive of the contrary result, since the European Monetary Agreement-in which, in addition to the E.E.C. coun* Vice-President of Board of Directors, Reconstruction Loan Corporation, Frankfurt (Main); Member, Board of Management, Deutsche Bank Aktiengesellschaft, Frankfurt (Main).