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Dilemmas of a trading nation : the United States and Japan in the evolving Trans-Pacific order
\"Japan is at a critical moment in determining its trade policy as it strives for renewed economic growth. Its economy still struggling after two decades of low growth, Japan now faces a difficult moment as it confronts this ongoing challenge to economic renewal. Tokyo could deploy a proactive trade policy to help it rise again as one of the world's greatest trading nations. It could also, at the same time, attack the structural problems that have hindered its economic competitiveness and kept it from becoming a leading voice in the drafting of rules for this century's global economy. Or, it could do nothing and remain shackled to the domestic political constraints that have kept it from playing a central role in international trade negotiations. In Dilemmas of a Trading Nation, Mireya Solis describes how Japan's economic choices are important for the United States, as well. The two nations are the most important members of the Trans-Pacific Partnership (TPP), the trade agreement concluded in 2015 intended to spur trade in the world's fastest-growing economic region. The arrest of Japan's economic decline, the credibility of America's resolve to remain a Pacific power, and the deepening of the bilateral alliance are all influenced significantly by the outcome of the TPP agreement. But the domestic politics of trade policy have never been as unwieldy as policymakers across the Pacific aim to negotiate ever more ambitious trade and to marshal domestic support for them. Dilemmas of a Trading Nation describes how, for both Japan and the United States, the stakes involved in addressing the tradeoffs of trade policy design could not be higher\"-- Provided by publisher.
Book
Analyzing the impact of trade and investment agreements on pharmaceutical policy: provisions, pathways and potential impacts
Background
Trade and investment agreements negotiated after the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) have included increasingly elevated protection of intellectual property rights along with an expanding array of rules impacting many aspects of pharmaceutical policy. Despite the large body of literature on intellectual property and access to affordable medicines, the ways in which other provisions in trade agreements can affect pharmaceutical policy and, in turn, access to medicines have been little studied. There is a need for an analytical framework covering the full range of provisions, pathways, and potential impacts, on which to base future health and human rights impact assessment and research. A framework exploring the ways in which trade and investment agreements may affect pharmaceutical policy was developed, based on an analysis of four recently negotiated regional trade agreements. First a set of core pharmaceutical policy objectives based on international consensus was identified. A systematic comparative analysis of the publicly available legal texts of the four agreements was undertaken, and the potential impacts of the provisions in these agreements on the core pharmaceutical policy objectives were traced through an analysis of possible pathways.
Results
An analytical framework is presented, linking ten types of provisions in the four trade agreements to potential impacts on four core pharmaceutical policy objectives (access and affordability; safety, efficacy, and quality; rational use of medicines; and local production capacity and health security) via various pathways.
Conclusions
The analytical framework highlights provisions in trade and investment agreements that need to be examined, pathways that should be explored, and potential impacts that should be taken into consideration with respect to pharmaceutical policy. This may serve as a useful checklist or template for health and human rights impact assessments and research on the implications of trade agreements for pharmaceuticals.
Journal Article
Getting RCEP across the Line
After eight years of effort, the 15 Asian members involved in the Regional Comprehensive Economic Partnership (RCEP) met in a virtual ceremony to sign the final document on Sunday, 15 November 2020. The final deal matches the original objective – to knit the region together and allow firms to build supply chains across the region to deliver goods, services, and investment to Asian markets more seamlessly. Getting this free trade agreement (FTA) to this point involved repeated missed deadlines, the loss of one important negotiating partner, and thousands of miles of travel for a rotating cast of officials, trade ministers, and leaders. RCEP began in late 2012 as an effort to unravel what has often been called the ‘spaghetti or noodle bowl’ of overlapping and inconsistent rules that can impede trade. While most of the countries in the region have extensive experience in trade and are outward oriented, trade in Asia has been bedeviled with challenges. This includes a range of both tariff and non-tariff obstacles that have made it more difficult than might be expected to trade, especially for final products, within the region.
Journal Article
Is It Possible to Use State-Owned Enterprises to Promote Industrial and Technological Development Under Article 17.4 of the CPTPP?
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) establishes, in its Chapter 17, the most extensive ‘behind the border’ regulation of stateowned enterprises (SOEs) among the bilateral and multilateral treaties. Prima facie, its rationality can be explained by the original purpose of the United States (former drafter of the Trans-Pacific Partnership Agreement (TPP)) to discipline the state capitalism policies employed by some Asian signatories. Considering this context, this article examines the meaning of the key normative concepts contained in Article 17.4 of the treaty (i.e., ‘commercial activities’, ‘non-discrimination’ and especially ‘commercial considerations’) and discusses to what extent such concepts recognize or restrict the freedom of the Parties to create and manage SOEs committed to promote national industrial and technological development, using as benchmark for this assessment Article XVII of the GATT and the interpretations made by the WTO adjudicators. It concludes that the wording of Article 17.4 is compatible both with an interpretation that allows the existence of such types of entities and with an interpretation that does not.
Journal Article
Asian influence on surface ozone in the United States: A comparison of chemistry, seasonality, and transport mechanisms
Ongoing growth in Asia has increased emissions of several ozone precursors which are increasingly impacting surface ozone levels in the United States. For this study we use the offline Community Atmospheric Model with Chemistry driven by National Center for Environmental Protection meteorology for 2001–2005, plus additional tagged tracers, to examine the chemistry, seasonality, and transport of Asian emissions as they are lofted from the Asian boundary layer into the free troposphere over the Pacific Ocean and into the United States. At the surface in the western United States, Asian ozone (O3A) mixing ratios are maximum in the spring at 3.36 ± 1.3 ppbv and are minimum in the summer at 1.36 ± 0.7 ppbv (mean ± standard deviation over time). Transport of O3A and its precursors to the surface in the United States depends on the structure of the elevated O3A plume and on available meteorological transport mechanisms, such as dry air streams associated with midlatitude cyclones, which can transport air from plumes with elevated levels of Asian pollution in the free troposphere to the surface. We show that the structure of such plumes has a strong seasonal dependence, entering the United States in the spring, widely dispersed between roughly 0 to 6 km and 20°N to 50°N in the lower free troposphere and boundary layer, with O3A mixing ratios between 5 and 10 ppbv. In summer the plume is less dispersed and is located in the upper free troposphere, centered at 8 km with peak O3A of 11 ppbv. Key Points Asian emissions impact surface ozone in the United States Ozone is brought to the U.S. surface in midlatitude cyclones The maximum Asian influence on U.S. O3 is found in the springtime
Journal Article
What Is International Trade Law For?
Events of the past few years, including the Brexit vote in the United Kingdom and the demise of the Trans-Pacific Partnership (TPP) and election of Donald Trump as president in the United States, have reignited debates about the global trade regime. With anti-trade populism seemingly on the rise in Europe and the United States, many have begun to question whether the trade regime has done enough for those who feel left behind by globalization. While some have held fast to the view that redistribution of trade's gains is primarily a matter of domestic policy, others have suggested tweaks to international trade agreements aimed at better spreading the wealth
Journal Article
The Economics of Conflict and Cooperation in the Asia-Pacific: RCEP, CPTPP and the US-China Trade War
The Regional Comprehensive Economic Partnership (RCEP) agreement, signed in November 2020, comes shortly after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force and the US-China Trade War escalated. We use a computable general equilibrium model to assess the long-term effects of these three developments on income, trade, economic structure, factor returns and employment across the world, and especially in Asia-Pacific countries. The results suggest that RCEP could generate income gains that will be almost twice as large as those of the CPTPP, and that the two agreements together will largely offset the substantial negative effects of the US-China Trade War for the world as a whole. All three policy developments, but especially RCEP, will deepen East Asian production networks and will raise productivity and increase wages and employment in much of East Asia. At the sectoral level, regional trade in non-durable and durable manufactures will experience the most growth.
Journal Article
De-globalization, International Trade Protectionism, and the Reconfigurations of Global Value Chains
By presenting an investigation of the impact of international trade protectionism on the reconfigurations of the global value chains (GVCs), this paper challenges the perceived assumption of ongoing globalization and the free flow of goods and services. Building on the de-globalization and GVCs’ literature, we performed a historical content analysis on 174 articles from 2016 to 2020 published in leading and major national and international newspapers. Our findings suggest that international trade protectionism has altered the landscape of GVCs by causing widespread disruption to their functioning, thus making them prone to future external policy risks. Such disruption is having a varying impact on various industries, whereby it is causing greater harm to those industries that are more global in nature and thus rely on global suppliers. We draw implications of our findings for research and practice.
Journal Article
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.
Journal Article