Working class Americans have been unable to compete for jobs demanding specialized technical skills, while the places they live have been hollowed out by shifts in global supply chains and the death of low-skilled manufacturing. So long as these workers feel left out of the economic mainstream, they will remain a potent political force, including in the upcoming 2020 election.
As global trade grows and increases in complexity, trade-based money laundering has become the weakest link in anti-money laundering initiatives. Banks and government officials are strengthening international collaboration to crack down on criminals who hide and launder their dirty money in global trade transactions.
AI is already changing global value chains and international trade patterns. Trade rules crafted today in the WTO or free trade agreements will play a critical role in further shaping how AI is further developed and deployed globally.
China went from a net importer of critical intermediary goods such as glass, paper, steel, and auto parts, to becoming the leading producer and dominant global exporter of these products. How could this seismic shift occur in industries where China does not maintain a particular advantage in labor, technology, or natural resources? The answer in large part is subsidization of Chinese production in the form of state-directed capital flows.
Manufacturers of labor-intensive products like apparel have already been looking elsewhere in Asia as labor costs continue to rise in China. China has not substantially increased market access for foreign investors in many sectors, causing foreign investment to slow or flatline in recent years. With lingering doubts about the worsening investment climate in China, the trade war is hastening decision-making that had already been underway.
Champagne is the drink of choice to celebrate many of life’s milestones and one country in particular benefits the most from this tradition: France. The European Union wants to ensure through trade agreements that only sparkling wines produced in the Champagne region of France can be labeled by law as Champagne.
Polar caps in the Arctic are receding, creating access to new trade routes for parts of the year. The routes are valuable short cuts for global trade but the waterways are precarious to navigate with unpredictable weather, the need for specialized icebreaking ships, and the necessity to operate at slower speeds, all of which make the routes less commercially reliable and partially offset the savings in time and fuel. So why are Russia and China racing other major powers to gain control of these waterways?
U.S. manufacturers will create more than 3 million job openings over the next decade – but two million of these future jobs could go unfilled. “If we’re not able to ensure a skilled workforce and a steady supply of skilled workers for manufacturers in this country, then [companies will] either go out of business or be forced to look elsewhere.” – Gardner Carrick of the Manufacturing Institute
Since 1947, the global trade rules have contained a “national security exception.” WTO members operate on the presumption that their fellow members will exercise the exception rarely and in good faith.