FTA in international finance : impacts of exchange rates on FTA utilization

This paper investigates how exchange rates affect the utilization of a free trade agreement (FTA) scheme in trading. Changes in exchange rates affect FTA utilization by two ways. The first way is by changing the excess profits gained by utilizing the FTA scheme, and the second way is by promoting the compliance of rules of origin. Our theoretical models predict that the depreciation of exporters' currency against that of importers enhances the likelihood of FTA utilization through those two channels. Furthermore, our empirical analysis, which is based on rich tariff-line-level data on the utilization of FTA schemes in Korea's imports from ASEAN countries, supports the theoretical prediction. We also show that the effects are smaller for more differentiated products.

Is FTA/EPA effective for a developing country to attract FDI? : simulation analysis based on an extended knowledge-capital model

To prepare an answer to the question of how a developing country can attract FDI, this paper explored the factors and policies that may help bring FDI into a developing country by utilizing an extended version of the knowledge-capital model. With a special focus on the effects of FTAs/EPAs between market countries and developing countries, simulations with the model revealed the following: (1) Although FTA/EPA generally ends to increase FDI to a developing country, the possibility of improving welfare through increased demand for skilled and unskilled labor becomes higher as the size of the country declines; (2) Because the additional implementation of cost-saving policies to reduce firm-type/trade-link specific fixed costs ends to depreciate the price of skilled labor by saving its input, a developing country, which is extremely scarce in skilled labor, is better off avoiding the additional option; (3) If a country hopes to enjoy larger welfare gains with EPA, efforts to increase skilled labor in the country, such as investing in education, may be beneficial.

Measuring the costs of FTA utilization : evidence from transaction-level import data of Thailand

In this study, we measure the utilization costs of free trade agreement (FTA) tariff schemes. To do that, we use shipment-level customs data on Thai imports, which identify not only firms, source country, and commodity but also tariff schemes. We propose several measures as a proxy for FTA utilization costs. The example includes the minimum amount of firm-level savings on tariff payments, i.e., trade values under FTA schemes multiplied by the tariff margin, in all transactions. Consequently, the median costs for FTA utilization in 2008, for example, are estimated to be approximately US$2,000 for exports from China, US$300 for exports from Australia, and US$1,000 for exports from Japan. We also found that FTA utilization costs differ by rule of origin and industry.

Service liberalization in Lao PDR

Service liberalization is emerging as a high-priority issue in various parts of the world for mega free trade agreements as well as national policy. Lao PDR is no exception. To examine the level of service liberalization in Lao PDR, we first compare the Hoekman Indices of Lao PDR, Cambodia, and Vietnam on the ASEAN Framework Agreement on Services (AFAS 8). Lao PDR has lower commitment in many subsectors. In particular, we list the sectors in which Lao PDR made a lower commitment than Cambodia and Vietnam in Mode 3 (supply of services through commercial establishments abroad). Second, a simulation analysis using the Geographical Simulation Model (IDE-GSM) from the Institute of Developing Economies at the Japan External Trade Organization (IDE-JETRO) reveals how service liberalization benefits the economic development of Lao PDR. The two analyses clearly reveal that it is essential for Lao PDR to promote further service liberalization since such liberalization will contribute to the country's development.

Accession clause of TPP : Is it really open?

One of the most important policy questions relating to the future impact of the Trans-Pacific Partnership on the global and regional economy is whether other countries in the region, particularly China, will join the partnership. While several commentators have made some observations regarding the future prospects of TPP expansion, little scholarly analysis has been conducted. To go beyond the speculation of a certain country's accession to TPP, we first attempt to generalize the issue before moving on to a specific question. We conduct a comparative analysis of a large number of regional trade agreements for a better understanding of the parameters of RTAs that are critical for membership expansion. This general framework enables us to conduct a systematic examination of specific membership expansion cases, such as China's membership in TPP. The paper also proposes a necessary "accession practice" that truly facilitates new members' participation.

Metodología para medir los efectos de la aplicación de estándares sobre la industria de los medios de pagos en el mercado chileno

Cada vez juegan un rol más relevante en nuestra vida las tecnologías de información, desde nuestros hogares hasta las empresas y gobiernos acceden a grandes volúmenes de datos e información, las comunicaciones ya no tienen impedimentos de distancias, un comprador y un vendedor puede estar en cualquier lugar, un producto que es adquirido en un comercio en Santiago a través de un medio de pago (tarjeta de crédito) en menos de un segundo la transacción va desde Chile a solicitar autorización en Singapur para ser aprobada. En la sociedad tanto oferentes como demandantes cuentan con información disponible en línea para la toma de decisiones. Existe una mayor apertura e integración económica iniciada con las redes comerciales, donde existen enfoques regionales y multilateral, que han impulsado la apertura del comercio y la integración económica. Son múltiples los tratados de libre comercio que apoyan al desarrollo económico, donde las crisis mundiales han afectado tanto las economías como el transporte, considerando que en el comercio internacional cerca del 90% se desarrolla a través de los puertos, es importante identificar relaciones entre el desarrollo de los medios de pago y el comercio electrónico a través de los puertos. Nuestra investigación busca integrar tanto aspectos de investigación científica como como investigación aplicada, de modo que sea un aporte al día a día de empresas en el sector de los medios de pago en Chile y quienes diseñan y definen la aplicación de normas y estándares. Esta tesis plantea una metodológica para analizar las relaciones entre la aplicación de estándares y sus efectos en la industria de los medios de pago en Chile. Este trabajo de investigación nos permitirá identificar entorno, variables que intervienen y evolución del mercado de los medios de pago, a través de un relevamiento del estado del arte de los medios de Pago en la industria Bancaria chilena. Buscaremos en el mercado de los medios de pago en la industria Chilena - sector Bancario, relaciones entre la aplicación de estándares y sus efectos en los volúmenes transaccionales, analizaremos las tendencias de los medios de pago y el desarrollo comercial del Puerto de Valparaíso. Se busca a través de esta metodológica poder mejorar la toma de decisiones en la industria de los medios de pago en Chile con una mejor gestión y uso de recursos. Every day information technology plays a greater role in our lives, from our homes to businesses, to how governments access large volumes of data and information. Communication is no longer hindered by distances, as a buyer and seller can be anywhere. A product that is purchased in a shop in Santiago through a payment option (credit card) in less than a second, a transaction will request authorization from Chile to Singapore to be approved. In this society both buyers and sellers have access to online information that is available for decision making. There is greater openness and economic integration that has begun within the commercial networks, in which there are regional and multilateral approaches that has helped expand trade and economic integration. Likewise, there are numerous free trade agreements that support economic development; however, the global crisis has affected economies like transportation. In regards to international commerce about 90% is developed through the ports, considering that the former is important to identify the relationships between the development of the payment options and e-commerce at the ports. Our research aims to integrate both the scientific research and applied research aspects, so that this will be a contribution to the day to day business for the payment options in Chile, and for those who design and define the application of norms and standards. This thesis offers a methodology to analyze the relationships between the application of standards and its affects in the industry of payment options in Chile. This research will allow us to identify the environmental variables that intervene and evolve the market of the payment options, through the analysis of the state of the art in the payment options in the Chilean Banking industry. In the market of the payment industry options we have looked specifically at the Chilean Banking industry and the relationship between the application of standards and their impact on transaction volumes. In addition, there has been an analysis of the activity of the payment options and wire transfers in the maritime industry in Valparaíso in order to define the feasibility of a model that allows us to relate these effects in these markets and the application of standards. We have searched the Chilean banking industry for the relationships between the application of standards and its effect on transaction volumes, in order to analyze the trends in the payment options and the commercial development at the Port of Valparaiso. Therefore, through the use of this methodology we look to be able to make better decisions in the payment options industry in Chile, with better management and use of the resources.

O uso de medidas antidumping como mecanismo de barreira à entrada no mercado brasileiro

As medidas antidumping são uma exceção ao livre comércio e como tal deveriam ser usadas com restrição. No entanto, desde o GATT 1947 há preocupação com o uso abusivo de tais medidas, podendo ser o mecanismo utilizado não apenas para possibilitar a recuperação da indústria doméstica prejudicada pelas importações objeto de dumping, objetivo do Acordo Antidumping (AAD), mas com o fim de proteger a indústria nacional da concorrência estrangeira. Desta forma, o objetivo do presente trabalho é apresentar as principais características do AAD firmado ao final da Rodada Uruguai que culminou na constituição da Organização Mundial do Comércio (OMC), incluindo seus antecedentes históricos e a possibilidade de aplicação discricionária, demonstrando como uma norma surgida no plano internacional em decorrência de um acordo multilateral vem sendo utilizada pelo Brasil, com a finalidade de se demonstrar a possibilidade de uso das medidas antidumping como barreira à entrada no mercado brasileiro. Confirmada a possibilidade de uso abusivo desse instrumento de defesa comercial, ainda que no plano teórico, uma vez que não é possível analisar os efeitos reais das medidas aplicadas, serão apresentadas as formas de contrabalanço ao protecionismo atualmente existentes no próprio AAD e sua incorporação e utilização pelo Brasil bem como a possibilidade de questionamento de tais medidas como práticas anticompetitivas com fundamento na legislação antitruste perante as autoridades de defesa da concorrência. Serão ainda analisadas outras possibilidades de contrabalanço ao uso exacerbado das medidas antidumping em debate e viabilidade das mesmas no cenário atual em que se verifica, de um lado, o aumento de uso de tais medidas pelos países Membros da OMC, destacando-se o Brasil e, de outro lado, impasse nas negociações multilaterais, cabendo aos Membros tomarem decisões unilaterais sobre a aplicação de tais medidas, seu grau de intensidade e forma de aplicação a depender da proteção que se pretende garantir à indústria nacional.

Corn Liberalization in Mexico: The Effects of Neoliberal Policies on Campesino Food Security

Mexico has a long history of structuralized violence against its most vulnerable socioeconomic strata, the peasantry, also referred to as Campesinos. From the Spanish invasion, to the contemporary neoliberal development project, corn production has been intimately associated with disparate power relations both within Mexican society, and without, particularly in relations with the United States. This study sheds light on the incongruities of modernism implicit within neoliberal policy instruments such as Structural Adjustment Programs (SAP) and free trade agreements. It will demonstrate that while such policies benefit some, they principally exacerbate existing power disparities via disarticulated trade economics, subordinating rather than liberating Mexico's most vulnerable citizenry.

Legal, Ethical and Cultural Issues U.S. companies face when moving operations to China.

Beyond free trade agreements governing cross-border commerce, the source of most global economic growth is attributed to business across interconnecting markets. Among the most attractive and complex markets, China stands out. Despite its appeal, American businesses are more likely to fail in China due to an overwhelming desire for an immediate return on investment while neglecting to consider or completely disregarding China's unique legal, ethical and cultural environment. This capstone project will give recommendations to help businesses succeed when entering China and avoid legal, ethical and cultural issues such as the ones that Google, Apple, and Yahoo experienced.

Central & Eastern Africa, 1889 (Raster Image)

This layer is a georeferenced raster image of the historic paper map entitled: The African news map of Central Africa with Powell's radial key showing approximate distances and directions from Leopoldville & Kimpoko, on Stanley Pool. It was published by African news in 1889. Scale 1:6,336,000. Covers portions of Central & Eastern Africa.The image inside the map neatline is georeferenced to the surface of the earth and fit to the Africa Sinusoidal projected coordinate system. All map collar and inset information is also available as part of the raster image, including any inset maps, profiles, statistical tables, directories, text, illustrations, index maps, legends, or other information associated with the principal map. This map shows features such as drainage, cities and other human settlements, shoreline features, the Congo Free Trade Area, Baptist missionary stations, proposed railway lines, areas of colonial influence, and more. Relief shown by hachures. Includes insets: Part of Southern Africa -- Africa -- Delta of the Nile -- Map of Liberia -- Loanda -- Coanza River, etc. -- [Map of sea routes between Europe, Africa and Northern America] -- Bishop Taylor's missions on the lower Congo and a View of the pyramids from the Nile.This layer is part of a selection of digitally scanned and georeferenced historic maps from the Harvard Map Collection. These maps typically portray both natural and manmade features. The selection represents a range of originators, ground condition dates, scales, and map purposes.

Mutual perceptions of Asia and the EU/Europe. Media, elite and public opinion in Singapore and Germany. EU Centre in Singapore Working Paper No. 12, December 2012

In an increasingly interlinked and interdependent world, Europe and Asia are key players. Free trade agreements (FTAs), such as the ones the EU concluded with South Korea and Singapore, are indicative of strong mutual economic interests. It is therefore timely to take a closer look at the mutual perceptions of Asians and Europeans – not only at the governmental and policymaking levels, but also in terms of public opinion and the media. Drawing on data from an extensive research project led by the National Centre for Research on Europe (NCRE), New Zealand, the empirical study in this paper assesses the mutual perceptions of the EU/Europe and Asia, and their respective actors, focusing on two countries – Germany and Singapore. It seeks to do so through an analysis of the data collected from print and broadcast media, interviews with media practitioners, and the findings from public opinion surveys.

Approximation to EU Technical Standards with and without the Promise of Membership: the Cases of Slovakia and Ukraine. EU Diplomacy Paper 02/2013

This paper aims to identify the extent to which the non-promise of membership of the European Union (EU) precludes the motivation of Ukraine as European Neighbourhood Policy country to adopt EU policies in the field of market access, namely technical standards and regulations. Its approximation approach is compared to the fast-tracked accession of Slovakia, which was driven by a clear-cut membership promise. Furthermore, the paper elaborates whether the conclusion of an Association Agreement between the EU and Ukraine, including a Deep and Comprehensive Free Trade Agreement, provides sufficient incentives for Ukraine to continue reforming its quality infrastructure in order to gain access to the Single European Market. Finally, scenarios of possible developments of EU-Ukraine relations are deliberated in the context of the EU-Ukraine-Russia triangle. The paper argues that market access provides sufficient stimulus for third countries to adhere to EU technical standards – even in the absence of a clear and credible promise of future EU membership. Yet, in the case of Ukraine, the country’s relations with Russia appear to compete with its EU approximation process, resulting for the time being in Ukraine attempting to pursue a balanced dual cooperation with both the EU and Russia.

Putin’s grand design to destroy the EU’s Eastern Partnership and replace it with a disastrous neighbourhood policy of his own. CEPS Commentary, 17 September 2013

This new Commentary by Michael Emerson and Hrant Kostanyan shows how the pressure exerted by President Putin on Armenia to withdraw from the Deep and Comprehensive Free Trade Agreement it had negotiated with the EU and to join the Belarus, Kazakhstan and Russia customs union is but the most recent in a long series of ongoing moves by Russia to destroy the Eastern Partnership. In their view, the message to be hammered home to those unsure of the economic arguments is that you do not have to have an exclusive customs union to enjoy deep integration for goods, services, people and capital, and of course even less for hard security relationships. High-quality free trade agreements are the logical instrument for those who want excellent relations with more than one big neighbour.

The Judicial Dimension of the European Neighbourhood Policy. EU Diplomacy Paper 08/2013, November 2013

In this paper, the expression “neighbourhood policy” of the European Union (EU) is understood in a broad way which includes the members of the European Free Trade Association (EFTA) contracting parties to the European Economic Area (EEA), the EFTA State Switzerland, candidate states, the countries of the European Neighbour-hood Policy (ENP), and Russia. The European Court of Justice (ECJ) is the centre of gravity in the judicial dimension of this policy. The innermost circle of integration after the EU itself comprises the EFTA States who are party to the European Economic Area. With the EFTA Court, they have their own common court. The existence of two courts – the ECJ and the EFTA Court – raises the question of homogeneity of the case law. The EEA homogeneity rules resemble the ones of the Lugano Convention. The EFTA Court is basically obliged to follow or take into account relevant ECJ case law. But even if the ECJ has gone first, there may be constellations where the EFTA Court comes to the conclusion that it must go its own way. Such constellations may be given if there is new scientific evidence, if the ECJ has left certain questions open, where there is relevant case law of the European Court of Human Rights or where, in light of the specific circumstances of the case, there is room for “creative homogeneity”. However, in the majority of its cases the EFTA Court is faced with novel legal questions. In such cases, the ECJ, its Advocates General and the Court of First Instance make reference to the EFTA Court’s case law. The question may be posed whether the EEA could serve as a model for other regional associations. For the ENP states, candidate States and Russia this is hard to imagine. Their courts will to varying degrees look to the ECJ when giving interpretation to the relevant agreements. The Swiss Government is – at least for the time being – unwilling to make a second attempt to join the EEA. The European Commission has therefore proposed to the Swiss to dock their sectoral agreements with the EU to the institutions of the EFTA pillar, the EFTA Surveillance Authority (ESA) and the EFTA Court. Switzerland would then negotiate the right to nominate a member of the ESA College and of the EFTA Court. The Swiss Government has, however, opted for another model. Swiss courts would continue to look to the ECJ, as they did in the past, and conflicts should also in the future be resolved by diplomatic means. But the ECJ would play a decisive role in dispute settlement. It would, upon unilateral request of one side, give an “authoritative” interpretation of EU law as incorporated into the relevant bilateral agreement. In a “Non-Paper” which was drafted by the chief negotiators, the interpretations of the ECJ are even characterised as binding. The decision-making power would, however, remain with the Joint Committees where Switzerland could say no. The Swiss Government assumes that after a negative decision by the ECJ it would be able to negotiate a compromise solution with the Commission without the ECJ being able to express itself on the outcome. The Government has therefore not tried to emphasise that the ECJ would not be a foreign court. Whether the ECJ would accept its intended role, is an open question. And if it would, the Swiss Government would have to explain to its voters that Switzerland retains the freedom to disregard such a binding decision and that for this reason the ECJ is not only no foreign court, but no adjudicating court at all.

Transnistria – Where to? EPC Policy Brief, 13 March 2014

At the Vilnius summit of the Eastern Partnership in November 2013, Moldova initialled its Association Agreement with the EU, including a Deep and Comprehensive Free Trade Area (DCFTA) agreement, and is expected to sign the documents before the end of August 2014. Meanwhile, Russia has increased its presence and pressure in the region, as a consequence of which Armenia declined the AA and DCFTA with the EU and Ukraine, after months of protests and political paralysis, now has part of its territory occupied by Russia. Moldova is no exception to Russian pressure. As the country gets closer to upgrading relations with the EU, Russia has increased its activities in Moldova, including in the autonomous region of Gagauzia and in the breakaway region of Transnistria. Even though the “5+2” negotiations for the settlement of the Transnistria conflict continue, the number of incidents in and around this region have increased. The window of opportunity created by the involvement of Germany in the settlement of the conflict and the restart of the “5+2” negotiations in late 2011 seems to have closed. Given the recent events in the region and in Moldova/Transnistria, including the potential impact of DCFTA and visa liberalisation, Chisinau finds it increasingly difficult to manage the juggling act between its EU commitment and dialogue with Tiraspol. This Policy Brief presents the background, state of play and prospects of the Transnistria conflict while also focusing on the potential impact of Moldova’s Association Agreement with the EU on the settlement of the conflict.