In The News

Closing a Legal Gap Between China and WTO 　

Xi Si January 18, 2008
Governments are big spenders, and the World Trade Organization’s Agreement on Government Procurement opens government purchases to international competition. The voluntary agreement, in effect since 1996, currently has 28 members, all developed nations, who agree to regulations and schedules. China has also applied, but other members balk at that application: “Chinese state-owned enterprises…are...

Snap-On Parts Didn’t Click Together for Boeing Jet

Jeff Bailey January 17, 2008
Manufacturing electronic products by assembling specialized parts from multiple suppliers has increased productivity and reduced costs in recent years. But the assembly method that relies on outsourcing for parts can be complicated to reverse. Behind schedule and hoping to speed its process, Boeing asked suppliers to send unassembled sections. “Instead, Boeing has ended up with a pile of parts...

The Invisible Hand of Globalization

Susan Froetschel January 3, 2008
Despite exponentially-advancing understanding of economic forces over the 20th century, Adam Smith’s invisible hand continues to elude. In his recently published book none other than former Chairman of the US Federal Reserve Alan Greenspan essentially throws up his hands. Every time a financial crisis hits the world, like the current turmoil caused by sub-prime mortgage lending in the US, calls...

China Begins to Fulfill Its Potential for Big Profits

Andrew Batson October 19, 2007
Multinational corporations look to China for huge potential profits. The investment climate has transformed – a decade ago, less than half of foreign companies in China ran profitable operations and now more than 80 percent collect profits. China’s WTO bid lowered bureaucratic barriers, thereby allowing foreign businesses to tap into the domestic market. Meanwhile, personal consumption has...

The Free-Trade Paradox

Moisés Naím October 19, 2007
The collapse last year of the Doha Round has had little apparent impact on global trade. Worldwide merchandise exports increased fivefold in the quarter century following 1980, and two thirds of the global reduction in tariff barriers may be attributed to unilateral decisions as opposed to regional or international trade agreements. Economic growth has spiraled skyward, thanks largely to...

Burkina Faso: Cotton Producers Celebrate WTO Ruling Against US Subsidies

October 17, 2007
A new ruling by the World Trade Organization condemns the US system of agricultural subsidies to cotton farmers and could lead to sanctions costing billions, if the payments are not terminated. Many Africans celebrate the ruling; according to estimates by the aid group Oxfam, the end of American subsidies could drive the price of cotton up by as much as 14 percent, leading to a modest increase in...

Trading Ritual and Reality

Alan Beattie September 25, 2007
Trade agreements are often contentious, raising heated protests from those fearing job loss and eagerness from businesspeople anticipating record profits. Yet since major reductions in manufacturing tariffs were instituted following World War II, trade agreements have been more about style than substance. The decline in the importance of bilateral and regional treaties can be attributed to the...