By Jieying Ding
The United States is in the negotiation with eleven other countries to finalize the Trans-Pacific Partnership (TTP), which, if successful, will become one of the biggest trade deals in history. However, a message from the Congress, reported by the Guardian, expressed strong disapproval of the exclusion of Congress in the negotiation process. Rep. Grijalva and Ellison, co-chairs of the Congressional Progressive Caucus, called for provisions protecting workers’ right to collectively bargain. The letter urged the U.S. to use the trade agreement to improve the bottom lines of all Americans, not just American corporations.
By Jieying Ding
China has launched an aggressive campaign to internationalize the Yuan since 2008, and its initiatives have included setting up currency swap pacts with other countries and opening up parts of its capital markets. The road to becoming a big player in international trade hasn’t been smooth though, as reported by the Wall Street Journal. The overall use of Yuan by global companies has dropped five percent over the past year. The drop is largely due to a weaker Euro because European companies generally prefer a weaker Euro to an expensive Yuan. Although outside the Asia-Pacific area there’s a slightly declining in terms of future usage intent, it still shows that Yuan is becoming part of the global economy.
By Jieying Ding
Bitcoin is in
its nascent stage in Middle Eastern countries where most people are still trying to grasp the concept of Bitcoin,
but some businessmen in the region have begun to accept Bitcoin as payment, reported
by the Newsbtc. The importance and timing of the new trend is interesting because
the U.S. dollar is being slowly nudged out as the standard currency for
international trade. The Chinese yuan and the Russian ruble are two strong
contenders. The U.S. dollar, in the eyes of Middle Eastern countries, represents
aggression and destabilization to the region. Using bitcoin in petroleum trade
sounds intriguing; yet the viability remains questionable.
By Jieying Ding
The
Obama administration accused Beijing of subsidizing services such as
information technology and worker training for industries that aim at the export
market, and filed a case at W.T.O., according to The
New York Times. If the administration wins the case, China can be ordered to
halt the subsidies, according to W.T.O rules. Although labeled as “clear-cut”
by Representative Sander Levin, the case may prove tricky as the W.T.O may see
it as indirect subsidies, which are widely used by many countries, including
the U.S. The next step may be for the United States to explore alternative
dispute mechanism, such as a dispute resolution panel in Geneva to rule.
By Jieying Ding
Delaware,
the birthplace of the American chicken industry, has taken on a trade battle
against South Africa for imposing tariffs on American chickens, reported
by The New York Times. As a result, American politicians led by Senator
Johnny Isakson are threatening to exclude South Africa from a trade
partnership. In response, South Africa contends that the U.S. is simply trying
to dump chickens to South Africa. Well, no matter who has the better argument,
this dispute happens in a bad timing for President Obama as he is pushing for
an aggressive trade agenda in Congress.
By Jieying Ding
Two months after Obama’s
historic announcement to normalize relations between U.S. and Cuba, the U.S.
relaxed restrictions on imports of goods and services from Cuba, reported
by The Guardian. However, many goods
still remain under embargo-including the famous and beloved Cuban cigars. The
new trade agreement also excludes business controlled by the Cuban government.
Nevertheless, the news excites the trade market between U.S. and Cuba, and
major companies such as Netflix and Twitter expressed interest in expanding
their business to Cuba.
By Jieying Ding
China (Shanghai) Free Trade Zone, launched on September 29, 2013 with the
support of the Chinese Premier, Li Keqiang, is the first free trade zone in
China. It comprises four areas under the special administration of customs, and
is located on a 29-square-kilometer patch of land on the outskirts of Shanghai.
At its launch, it was thought to mark a major milestone in China’s commitment
to economic reforms and continuous wide opening to world markets. It was
supposed to attract foreign investment and introduce interest rate
liberalization and easy cross border capital flow.
However, political power struggles shadowed over the free trade zone
even before its launch. South China Morning Post, a Hong Kong newspaper
that is believed to have close connections with Beijing, cited three sources
with first-hand knowledge of high-level government meetings saying that Li
Keqiang slammed his fist on the table in frustration when he was told about continuing
opposition to the Shanghai free trade zone. Shortly before its launch, there
was speculation that China would lift its ban on Facebook within the
free trade zone, which was quickly denied by the state-run People’s Daily. Moreover,
Li Keqiang and his deputy’s absence at the opening ceremony surprised a lot of
people who had high expectations for the free trade zone.
By Jieying Ding
The rise of the dollar
versus the euro and most other currencies sends a strong signal that U.S.
economy is doing far better than its counterparts in Europe, achieving a 5
percent GDP growth in the third quarter of 2014, according to the New York Times. While the business
community welcomes a stronger U.S. economy, things have gotten a little tough
for U.S. exporters. Firms that must pay workers and buy raw materials in now
depreciated currencies are saving money without having to cut pay, an advantage
U.S. exporters don’t have. Although U.S. exporters are not complaining now,
it’s likely that if the appreciation continues, they’ll pressure for diplomatic
action to help reverse the trend.
By Jieying Ding
Presidential efforts to secure the trade power have met with hostility
from Congress since 1994, but Obama is facing opposition from his own party on
this matter, according to the New York Times. Obama needs
his fellow Democrats’ support to finish and approve the negotiation of the
Trans-Pacific Partnership, a complicated 12-nation agreement that is a crucial
element of Obama’s “pivot” to Asia. Members of the liberal wing of the
Democratic Party think that the trade deal would “leave America’s middle class
in a deep hole,” while business groups are pressing the President to take a
more active role. On the other side of the aisle, even though many Republicans
strongly support President Obama’s trade agenda, some just won’t give Obama a
victory—no matter how much they like the policy.
