Political influence in commercial and financial oil trading : the evidence from US firms

International politics affects oil trade. But do financial and commercial traders who participate in spot oil trading also respond to changes in international politics? We construct a firm-level dataset for all U.S. oil-importing companies over 1986-2008 to examine how these firms respond to increases in "political distance" between the U.S. and her trading partners, measured by divergence in their UN General Assembly voting patterns. Consistent with previous macro evidence, we first show that individual firms diversify their oil imports politically, even after controlling for unobserved firm heterogeneity. However, the political pattern of oil imports is not entirely driven by the concerns of hold-up risks, which exist when oil transactions via term contracts are associated with backward vertical FDI that is subject to expropriation. In particular, our results indicate that even financial and commercial traders significantly reduce their oil imports from U.S. political enemies. Interestingly, while these traders diversify their oil imports politically immediately after changes in international politics, other oil companies reduce their oil imports with a significant time lag. Our findings suggest that in designing regulations to avoid harmful repercussions on commodity and financial assets, policymakers need to understand the nature of political risk.

Inter-temporal Price Discrimination when Imports are Restricted by Quotas

A dominant firm holding import quota engages in inter-temporal price discrimination when facing a competitive fringe engaged in seasonal production. This causes a welfare loss that comes in addition the loss attributable to limitation of imports below the free trade level.

Australia's Foreign Economic Policy: a 'State-Society Coalition' Approach and a Historical Overview

This paper aims to explain the historical development of Australia's foreign economic policy by using an analytical framework called a 'state-society coalition' approach. This approach focuses on virtual coalitions of state and society actors that share 'belief systems' and hold similar policy ideas, goals and preferences, as basic units (policy subsystems) of policy making. Major policy changes occur when a dominant coalition is replaced by another. The paper argues that, in Australia, there have been three major state-society coalitions in the foreign economic policy issue area: 'protectionists', 'trade liberalisers' and 'optional bilateralists'. The rise and fall of these coalitions resulted in distinctive shifts of Australia's foreign economic policy in the 1980s towards unilateral and multilateral liberalisation and in the late 1990s towards bilateral trade and investment arrangements.

The Policy Making Process in FTA Negotiations: A Case Study of Japanese Bilateral EPAs

This paper analyzes Japanese bilateral EPA negotiations, focusing on the areas that each country decided were most important, as well as which actors played the most important roles in each set of negotiations. The negotiations with Mexico and Thailand, which tried to increase agricultural exports to Japan through FTAs, will be discussed. Japan, one should note, still seeks to protect its agricultural sector in spite of the spread of liberalization. The Philippines, Thailand and Malaysia’s efforts to improve and compete in developing their automotive industries, in the face of the completion of AFTA in 2010, are also examined. In addition, this paper discusses whether economic cooperation, the essential Japanese strategy in EPA negotiations, alters the negotiation process in any significant way.

Promoting institutional connectivity in the Asia Pacific region : a study of supply chain and trade in services

This paper analyzes "institutional connectivity", or the degree of seamless trade in services centering on the distribution sector. Foreign equity participation in mode 3 (commercial presence) of trade in services and business firms’ investment performance has been studied closely. Net economic benefits of transparent institutional connectivity in the wholesale sector have also been revealed statistically in the case of Japan’s bilateral FTAs with other APEC members. Given these results, APEC could work on establishing its own harmonized "service trade commitment table" with only the foreign capital participation as its simple policy restriction. This would surely enhance an APEC-wide, institutional supply chain connectivity.

Commercial and financial legislation of Europe and America; with a pro-forma revision of the taxation and the customs tariff of the United Kingdom.

Mode of access: Internet.

Cryptographic Software Export Controls in the EU

Certain software products employing digital techniques for encryption of data are subject to export controls in the EU Member States pursuant to Community law and relevant laws in the Member States. These controls are agreed globally in the framework of the so-called Wassenaar Arrangement. Wassenaar is an informal non-proliferation regime aimed at promoting international stability and responsibility in transfers of strategic (dual-use) products and technology. This thesis covers provisions of Wassenaar, Community export control laws and export control laws of Finland, Sweden, Germany, France and United Kingdom. This thesis consists of five chapters. The first chapter discusses the ratio of export control laws and the impact they have on global trade. The ratio is originally defence-related - in general to prevent potential adversaries of participating States from having the same tools, and in particular in the case of cryptographic software to enable signals intelligence efforts. Increasingly as the use of cryptography in a civilian context has mushroomed, export restrictions can have negative effects on civilian trade. Information security solutions may also be took weak because of export restrictions on cryptography. The second chapter covers the OECD's Cryptography Policy, which had a significant effect on its member nations' national cryptography policies and legislation. The OECD is a significant organization,because it acts as a meeting forum for most important industrialized nations. The third chapter covers the Wassenaar Arrangement. The Arrangement is covered from the viewpoint of international law and politics. The Wassenaar control list provisions affecting cryptographic software transfers are also covered in detail. Control lists in the EU and in Member States are usually directly copied from Wassenaar control lists. Controls agreed in its framework set only a minimum level for participating States. However, Wassenaar countries can adopt stricter controls. The fourth chapter covers Community export control law. Export controls are viewed in Community law as falling within the domain of Common Commercial Policy pursuant to Article 133 of the EC Treaty. Therefore the Community has exclusive competence in export matters, save where a national measure is authorized by the Community or falls under foreign or security policy derogations established in Community law. The Member States still have a considerable amount of power in the domain of Common Foreign and Security Policy. They are able to maintain national export controls because export control laws are not fully harmonized. This can also have possible detrimental effects on the functioning of internal market and common export policies. In 1995 the EU adopted Dual-Use Regulation 3381/94/EC, which sets common rules for exports in Member States. Provisions of this regulation receive detailed coverage in this chapter. The fifth chapter covers national legislation and export authorization practices in five different Member States - in Finland, Sweden, Germany, France and in United Kingdom. Export control laws of those Member States are covered when the national laws differ from the uniform approach of the Community's acquis communautaire. Keywords: export control, encryption, software, dual-use, license, foreign trade, e-commerce, Internet

Trade Blocs and the Cold War : The CMEA and the EC challenge, 1969-1976

The coherence of the Soviet bloc was seriously tested at the turn of the 1970s, as the Soviet Union and its allies engaged in intensive negotiations over their relations with the European Communities (EC). In an effort to secure their own national economic interests many East European countries began independent manoeuvres against the wishes of their bloc leader. However, much of the intra-bloc controversy was kept out of the public eye, as the battle largely took place behind the scenes, within the organisation for economic cooperation, the Council for Mutual Economic Assistance (CMEA). The CMEA policy-making process vis-à-vis the EC is described in this study with reference to primary archival materials. This study investigates the negotiating positions and powers of the CMEA member states in their efforts to deal with the economic challenge created by the progress of the EC, as it advanced towards the customs union. This entails an analysis of the functioning principles and performance of the CMEA machinery. The study traces the CMEA negotiations that began in 1970 over its policy toward the EC. The policy was finally adopted in 1974, and was followed by the first official meeting between the two organisations in early 1975. The story ends in 1976, when the CMEA s efforts to enter into working relations with the EC were seemingly frustrated by the latter. The first major finding of the study is that, contrary to much of the prior research, the Soviet Union was not in a hegemonic position vis-à-vis its allies. It had to use a lot of its resources to tame the independent manoeuvring of its smaller allies. Thus, the USSR was not the kind of bloc leader that the totalitarian literature has described. Because the Soviet Union had to spend so much attention on its own bloc-politics, it was not able to concentrate on formulating a policy vis-à-vis the EC. Thus, the Soviet leadership was dependent on its allies in those instances when the socialist countries needed to act as a bloc. This consequently opened up the possibility for the USSR s allies to manoeuvre. This study also argues that when the CMEA did manage to find a united position, it was a force that the EC had to reckon with in its policy-making. This was particularly the case in the implementation of the EC Common Commercial Policy. The other main finding of the study is that, although it has been largely neglected in the previous literature on the history of West European integration, the CMEA did in fact have an effect on EC decision-making. This study shows how for political and ideological reasons the CMEA members did not acknowledge the EC s supranational authority. Therefore the EC had no choice but to refrain from implementing its Common Commercial Policy in full.

The ranking of alternative tariff and quota policies in the presence of domestic monopoly

Bhagwati demonstrated the nonequivalence between tariffs and quotas in the presence of monopoly. This paper also assumes domestic production to be monopolized and shows that giving import licenses or tariff revenues to the domestic producer may raise or lower the welfare cost of protection and the price paid by consumers from the price under other tariff and quota arrangements which maintain the same market share for the domestic producer. However, if the monopolist realizes that commercial policy is an instrument used to maximize the policymaker's welfare function, instead of being a goal in itself, the equivalence of tariffs and quotas re-emerges. © 1977.

Les politiques commerciales, industrielles, régionales, et d'adaptation dans le Rapport de la Commission MacDonald: un Commentaire

The effect of long discussions between commissioners with divergent views on certain issues is obvious in the report: it is more oriented towards the short term than expected. Undue attention was paid to trade liberalization with the U.S., a region of the world which the report describes as one in relative decline. The report does not deal with a scenario wherein trade liberalization with the U.S.A. is seen as a necessary transitory measure leading towards diversification of Canada's trade relation away from North America. Such an examination would point to a different approach to the U.S.A. in the short term. The report does not deal with services, information and te telecommunication which are fundamental to the economic development of Canada. There is also overemphasis on commercial policy and relative neglect on the use of domestic policies, among them industrial policy, in the pursuit of Canada's objectives. The report notes the interdependence between commercial and domestic policies and rightly recommend that provinces must, as a consequence, be involved in trade liberalization discussions. It is argued that the report underestimates the pressures for extra- territorial application of U.S. policies to Canada and the pressure for harmonization of policies which would follow trade liberalization. The report pays no attention to the implications of offshore investment going primarily to the U.S.A. and does not pay adequate attention to the role of investment to deal with adjustment problems. Available studies would have allowed the commissioners to clarify the determinants of investment decisions by Canadian head offices who have established subsidiaries in the U.S.A. but they were not examined. Little attention was paid to the role of transnationals and intrafirm trade in examining the implications of trade liberalization. The importance given to the reduction of regional disparities in earned incomes is welcome. However, the recommandation to leave regional development to provinces and municipalities denies the importance of national policies in the attainment of regionalization job equilization the impact of new CAD-CAM-telecommunications technologies on location decisions for the production of goods and services was not examined. Nor were the extent of and changes in interregional (i.e. interprovincial and more particularly province-state) trade flows examined. Knowledge of these patterns is essential in the formulation of industrial and adjustment policies in light of trade liberalization. The report recommends passive industrial adjustment policies focussed on the U.S., a reflection of the concern of the commissioners for the short term and the U.S.A. The implementation of the report's recommendations would lead to a centralization of economic power at the nationallevel, hence the need to establish a renewed senate to favour the formulation of regionally sensitive national policies.

Sustitución de importaciones a nivel Subregional (Colombia, Ecuador, Venezuela)

se pretende demostrar que actualmente se presenta sustitución de importaciones a nivel subregional (Colombia, Ecuador y Venezuela) en el Grupo Andino.

An exploratory assessment of the potential impact of the free trade area of the americas on the andean community

A través de una simulación llevada a cabo con GTAP, este documento presenta una evaluación preliminar del impacto potencial que el Área de Libre Comercio de las Américas tendría sobre la Comunidad Andina de Naciones. Mantenido por la Universidad de Purdue, el GTAP es un modelo multiregional de equilibrio general, ampliamente usado para el análisis de temas de economía internacional. El experimento llevado a cabo tiene lugar en un ambiente de competencia perfecta y rendimientos constantes a escala y consiste en la completa eliminación de aranceles a las importaciones de bienes entre los países del Hemisferio Occidental. Los resultados muestran la presencia de modestas pero positivas ganancias netas de bienestar para la Comunidad Andina, generadas fundamentalmente por mejoras en la asignación de recursos. Movimientos desfavorables en los términos de intercambio y el efecto de la desviación de comercio con respecto a terceros países, reducen considerablemente las ganancias potenciales de bienestar. De la misma forma, la existencia de distorsiones económicas al interior de la Comunidad Andina tiene un efecto negativo sobre el bienestar. El patrón de comercio aumenta su grado de concentración en el comercio bilateral con los Estados Unidos y la remuneración real a los factores productivos presenta mejoras con la implementación de la zona de libre comercio.

La competencia de la Unión Europea en la inversión extranjera directa (Tema Central)

El presente trabajo intenta analizar brevemente los distintos aspectos relativos a la inclusión de la inversión extranjera directa en la política comercial común de la Unión Europea, reformada por el Tratado de Lisboa. Inicialmente se hará referencia a la práctica de la UE en el área de inversiones previas al Tratado de Lisboa, acto seguido, se expondrán las interpretaciones sugeridas al concepto de “inversión extranjera directa” en la política comercial común de la Unión Europea, así como también las distintas posturas sobre el alcance de esta política con relación a este concepto, tras la vigencia del Tratado de Lisboa. Finalmente serán descritos los posibles efectos de dicha competencia de la Unión para los tratados bilaterales de inversión celebrados entre sus países miembros, y de estos con terceros países.