President-elect Trump announced his intention to formally withdraw the United States from the TPP agreement. So ends seven years of controversial negotiations and intense public debates over the content and anticipated consequences of the pact. Trade goes on — but other countries will try to fill the leadership space.
China argues it should be granted “market economy status” by all WTO Members. Some of the world’s major economies, including the United States, think it depends on the specific situation. American producers of industrial commodities such as steel say China is not operating on market principles in their sector.
The UK has opted to leave the EU. Now it must figure out a new trade architecture for itself that keeps its global commercial relationships in tact.
Trade has been a remarkable engine of economic growth and development, lifting hundreds of millions out of poverty since the birth of the modern trade system in Bretton Woods more than six decades ago. But how can a country trade sustainably, and deliver not only balanced economic benefits to its citizens, but also strengthen social capital and provide responsible environmental stewardship?
According to a new study, reducing tariffs on LED light bulbs by 3.6 percent would save American households $320 million each year. How? Lowering the tariff on imported LED bulbs makes it cheaper to buy them. Lower prices also raises demand, leading to greater usage. Using more energy efficient light bulbs could cut electric bills by $129.6 million and lower the number of kilowatt hours in the United States by 238 million every year.
Kicking-off the 2016 holiday season, Americans broke spending records on Black Friday and Cyber Monday. But the big story was how people shopped – online – and increasingly using their phones not just their computers.
Mr. Trump ran on a platform that rejects the notion that trade agreements have worked to America’s favor. He promised some major reversals of trade policies. Will he dump trade?
The Environmental Goods Agreement (EGA) is an effort by 17 participants representing 46 WTO Members to eliminate tariffs on a range of goods related to protecting or improving the environment. Together, these 46 Members account for 90 percent of environmental goods trade worldwide. The EGA would eliminate tariffs on a negotiated list of products designated as “environmental goods,” and would be signed by a subset of WTO Members. Trade practitioners call this type of agreement a plurilateral sectoral agreement: many countries, one sector.
President-elect Trump is already marching through his first 100-day agenda. Near the top of that list is withdrawing from NAFTA—or re-negotiating it. He should work with Mexico and Canada to create a North American Infrastructure Bank instead of re-opening an outdated NAFTA agenda.
Globally, e-commerce sales are projected to surpass $3.5 trillion within the next five years. China and the U.S. account for over 55 percent of global e-commerce, but digital consumption is growing around the world even in markets that still heavily operate on a cash-on-demand basis, like India. The major American e-commerce platforms Amazon and eBay are growing their share in overseas markets but they face stiff competition from companies vying for new online shoppers around the world.