Archive for the ‘Globalization & International Trade’ Category

20
Oct

Arancha GonzalezArancha Gonzalez (7)

Arancha González, Executive Director of the International Trade Centre (ITC), addressed the MIR class on Thursday 16 October. Ms. González gave an insightful lecture on “Global Governance, International Trade Trends and Geopolitics” that was followed by Q&A from the audience and a lively discussion with the participation of Mr. Guillermo de la Dehesa, Chairman of the International Advisory Board of IE Business School.

Read more…

23
Sep

The Pacific Alliance deserves some applause. Photographer: Alfredo Estrella/AFP/Getty Images

The Pacific Alliance is achieving significant results. Three years ago, Chile, Colombia, Mexico and Peru decided to move toward deeper economic and commercial integration. The effort was based on our common belief that the free movement of people, goods, services and capital can help us achieve greater welfare and social inclusion for our citizens.

Our four countries represent 214 million people, and our economies have a combined gross domestic product of $2.1 trillion, which accounts for 37 percent of Latin America’s total GDP, averaging a 5.1 percent annual growth rate over the past four years. Our foreign trade adds more than $1.13 trillion, and we receive 45 percent of total foreign investment flows in Latin America.

To fulfill our goal of free movement of people, we lifted tourist and business visa requirements for our citizens. Because cultural exchange and education are so important, we put in place special programs to make it easier for our students to study and travel.

We also found ways to expand the free movement of goods and services. A new trade agreement will immediately eliminate tariffs for 92 percent of our common products, and the remaining 8 percent will be phased out, giving extra help to small and medium enterprises.

On the free movement of capital, our stock exchanges are now unified in the Latin American Integrated Market. With the recent addition of Mexico, we are certain that this action will broaden the diversity of financial products that we can offer. More than 750 companies with a market value of $1.1 trillion are represented in our integrated market.

We believe we have come a long way in a short time. However, we want to do more and do it together. We are establishing embassies and trade offices in shared facilities overseas as well as organizing trade and economic missions. We created a fund to promote projects among ourselves and with third parties.

We are particularly committed to working with other countries. With 32 nations now observing the Pacific Alliance, we know there is broad global interest in our shared enterprise and the prospect for wider integration.

We are therefore strengthening our relationship with observer countries by defining projects of cooperation in our core areas. Specifically, we are working on education, trade, small and medium businesses, innovation, science and technology, and infrastructure. More generally, we are open to exploring engagement with other regional integration efforts.

The Pacific Alliance Business Council, which includes representatives of the main private economic institutions of our four countries, is another important partner in our project. As we gather this week in New York City to attend the United Nations General Assembly, we plan to discuss our achievements, challenges and prospects, as well as to deepen a fruitful exchange with the U.S. and the international business community.

If we had to highlight one characteristic of our integration process, it would be this: We firmly believe that the main purpose of the Pacific Alliance is to improve the welfare of all our citizens through the promotion of growth and economic development, and the improvement of the competitiveness of our economies.

Three years ago, we faced the challenge of fostering a process that would strengthen our countries and, especially, help us build a bridge to the Asia Pacific region. This aspiration has now become a reality. We will continue to work together, as partners, to fulfill our common goals and to deepen and extend our vision, for the benefit of our nations.

By  ,  ,  &Michelle Bachelet is president of Chile. Juan Manuel Santos is president of Colombia. Enrique Pena Nieto is president of Mexico. Ollanta Humala is president of Peru

Published on 21 September in http://www.bloombergview.com/articles/2014-09-21/chile-colombia-mexico-peru-better-together

18
Sep

India’s Soft Power Advantage

Written on September 18, 2014 by Waya Quiviger in Asia, Foreign Policy, Globalization & International Trade

India’s Soft Power Advantage

During Prime Minister Tony Abbott’s recent visit to India, he was asked to justify Australia’s signing of a deal to sell uranium to the country. In response, the prime minister said, “India threatens no one” and “is the friend to many.” This was no mere diplomatic nicety, but a carefully chosen answer based on India’s international image. It is an image that is rare amongst great powers of India’s size and strength, and will give Delhi a unique soft power advantage in the future multipolar world.

Much of the globe sees India as a relatively non-violent, tolerant and pluralistic democracy with a benign international influence. Its values are seen as largely positive.

The U.S., with its Indo-U.S. nuclear deal, accorded India special treatment in nuclear cooperation. The deal provided benefits usually reserved for Non-Proliferation Treaty (NPT) signatories. Washington justified cooperation with India by highlighting Delhi’s impeccable non-proliferation record. This stance was replicated by other states, including the Nuclear Suppliers Group (NSG) member states who allowed India’s participation in international nuclear commerce and supported the Indo-U.S. deal. The NSG decided to re-engage with India following an India-specific safeguards agreement with the International Atomic Energy Agency (IAEA). The IAEA’s Board of Governors endorsed a nuclear safeguards agreement with India by consensus that would permit Delhi to add more nuclear facilities to be placed under the IAEA safeguards framework. India did not have to have an Additional Protocol like the non-nuclear weapons states who are NPT signatories. India also received favorable treatment from Canada (which agreed to supply “dual-use items” that can be used for civilian and military applications), Japan and South Korea.

This cooperation was not merely driven by these states’ strategic relationships with the U.S. Russia has long cooperated with India on nuclear technology. Even China, as a member of the NSG, did not oppose the group’s decision on India. Today, India is the only known nuclear weapons state that is not part of the NPT but is still permitted to engage in nuclear commerce globally.  Read more…

Published in http://thediplomat.com/

14
May

On Monday 12 May, Dr. Casilda Güell, Professor of Political Science at the Universitat Internacional de Catalunya, addressed the MIR class in a very lively debate on regional integration. Quoting various authors including Barry Buzan and Richard Haas, Dr. Güell discussed the merits of regional integration in addressing the global challenges countries face today including financial crises, epidemics, terrorism, climate change. The nation state is now receding and no country alone can tackle these global problems, not even a superpower.  According to Buzan, the world is changing and we are evolving from a unipolar world dominated by a reluctant hegemon, the US, to a multipolar world with different poles composed of regional unions such as the EU, Mercosur, ASEAN…

Unlike what many pundits affirm, China will not be the next hegemon. It is unwilling to take on that role and should it rise to that position, other poles would counterbalance it.  Dr. Güell then discussed the 5 layers of integration, free trade, customs union, common market, economic union and political union. The EU is currently between the 4th and 5th layers. NAFTA is at the first stage while Mercosur is currently a customs union. Dr. Güell asked the students if economic integration was a prerequisite to political integration: peace through commerce. Opinions were divided even though history shows that political union when it is reached first goes through the stage of economic integration.

The seminar concluded with short student presentations on the pros and cons of NAFTA, Mercosur and the EU. The class was overwhelmingly in favor of regional integration with one of two dissenting voices that made for a richer discussion.

 

 

 

17
Mar

Trade agreements are a subject that can cause the eyes to glaze over, but we should all be paying attention. Right now, there are trade proposals in the works that threaten to put most Americans on the wrong side of globalization.

The conflicting views about the agreements are actually tearing at the fabric of the Democratic Party, though you wouldn’t know it from President Obama’s rhetoric. In his State of the Union address, for example, he blandly referred to “new trade partnerships” that would “create more jobs.” Most immediately at issue is the Trans-Pacific Partnership, or TPP, which would bring together 12 countries along the Pacific Rim in what would be the largest free trade area in the world.

Negotiations for the TPP began in 2010, for the purpose, according to the United States Trade Representative, of increasing trade and investment, through lowering tariffs and other trade barriers among participating countries. But the TPP negotiations have been taking place in secret, forcing us to rely on leaked drafts to guess at the proposed provisions. At the same time, Congress introduced a billthis year that would grant the White House filibuster-proof fast-track authority, under which Congress simply approves or rejects whatever trade agreement is put before it, without revisions or amendments.

Controversy has erupted, and justifiably so. Based on the leaks — and the history of arrangements in past trade pacts — it is easy to infer the shape of the whole TPP, and it doesn’t look good. There is a real risk that it will benefit the wealthiest sliver of the American and global elite at the expense of everyone else. The fact that such a plan is under consideration at all is testament to how deeply inequality reverberates through our economic policies.

Worse, agreements like the TPP are only one aspect of a larger problem: our gross mismanagement of globalization.

Let’s tackle the history first. In general, trade deals today are markedly different from those made in the decades following World War II, when negotiations focused on lowering tariffs. As tariffs came down on all sides, trade expanded, and each country could develop the sectors in which it had strengths and as a result, standards of living would rise. Some jobs would be lost, but new jobs would be created. Read more…

 

By Joseph Stiglitz, Mar. 15, 2014; Published in The New York Times

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