In The News

Biggest US Free-Trade Accord Since ’94 Passed

Eric Martin and William McQuillen October 13, 2011
In an unusual display of agreement, the 112th US Congress approved free-trade agreements with South Korea, Colombia and Panama. The South Korea deal alone will remove duties on almost two-thirds of US farm exports and phase out tariffs on virtually all industrial and consumer exports within five years, reports Bloomberg. The US is striving to double US exports by 2015, and trade momentum could...

America’s Labor Pains

Nayan Chanda October 10, 2011
Americans are frustrated by their inability to find jobs and the widening inequality that brings. Proposals from government and corporations so far rely on unworkable notions that failed in the past, including protectionist measures or subsidies that reinforce aging industries that are no longer competitive. The world economy has undergone structural transformation, explains Nayan Chanda in his...

SEC Seeks Offshore Cash Disclosure

Helen Thomas September 26, 2011
The US Securities and Exchange Commission is “pushing” companies to disclose to investors their offshore cash holdings, reports Helen Thomas for the Financial Times. Such disclosures could “be relevant and material to understanding a company’s liquidity,” Thomas adds. US regulations require companies to pay taxes of up to 35 percent on income earned overseas and repatriated to the US, providing...

The G-20 Must Get Serious

Gordon Brown, Felipe Gonzalez and Ernesto Zedillo September 23, 2011
World leaders could do more to pursue coordinated action on the global economy, contend former UK Prime Minister Gordon Brown, former Spanish Prime Minister Felipe Gonzalez and former Mexican President Ernesto Zedillo in an opinion essay for the International Herald Tribune. Failure to follow up on pledges to strengthen global financial regulation, find agreement on the delayed World Trade...

How Global Trade Can Rein in Health Costs

Dean Baker, Jagdish Bhagwati September 21, 2011
Rising healthcare costs contribute to the ballooning US budget deficits, and the US has thus far resisted public health plans mandating universal coverage. Opening the US market to international competition could offer a means to disciplining the industry and reducing costs, explains economists Jagdish Bhagwati and Dean Baker for CNN Money, adding that “medical care of comparable quality is...

Unraveling China’s “String of Pearls”

Ashley S. Townshend September 16, 2011
Reports that Pakistan invited China to construct a naval base in Gwadar have reignited concerns about Beijing’s strategic ambitions in the Indian Ocean. For many China-watchers, the militarization of this commercial port – just 500 kilometers from the Strait of Hormuz – would confirm longstanding anxieties about Beijing’s so-called “string of pearls” strategy. Yet there are few reasons to fear...

Arms Makers Eye Exports to Offset Pentagon Cuts

Jim Wolf September 12, 2011
With US politicians up in arms over deficits and debt, defense manufacturers anticipate sharp budget reductions for the US Department of Defense. US spending on defense nearly doubled in the decade following the 9/11 attacks, but even hardline politicians have expressed a new willingness to reduce defense spending, which makes up about 20 percent of the federal budget. Without incoming orders,...