In The News

Containerized Trade Imbalance Set to Worsen

Beth Jinks March 25, 2004
A third of all shipping containers that land in Singapore are empty, according to recent surveys. This trend is set to continue throughout Asia, as more manufacturing shifts to the region. But shipping empty containers is costly – and worrisome to operators of shipping lines. The current imbalance, say observers, is partly due to the rise of countries like China, whose cheaper labor constitutes a...

Jobs Can Be Outsourced, Not Politics

Harold James March 24, 2004
The American outcry about outsourcing stems not just from job loss, but also from the politician's favorite platitude - trade. According to Princeton historian, Harold James, ascribing job loss to trade is fraught with complications. Moreover, from a historical point of view, it is a recurring theme that often ends terribly. As James notes, throughout the latter part of the 19th and early...

With Mexico FTA Set, Japan Turns Toward Asia

Mayumi Negishi March 12, 2004
After completing only its second Free Trade Agreement (FTA) ever, Japan is looking towards Malaysia, Thailand, the Philippines, and South Korea for new prospective partners. The newly-inked Mexico FTA will provide much-needed agricultural imports to a country that imports 60% of its food stuff; however, it took some work to overcome the voices of the powerful Japanese agricultural lobby. With...

Laissez Unfaire

Arindam Mukherjee March 11, 2004
Globally, the Free Trade Agreement (FTA) is very much in vogue, but India is rethinking its rush to keep up with trends. At present, there are some 250 FTAS globally, a figure that is likely to increase dramatically in the near future. India has made many strides in this area, signing, or committing to sign, various multilateral as well as bilateral agreements. Currently, it is in the process...

Hungary Eager and Uneasy Over New Status

Mark Landler March 5, 2004
Poised to join the European Union (EU) in May, Hungary anticipates a larger share of the global trade pie. During the 1990's Hungary served as a "backdoor to Europe" for U.S companies, and now it hopes to market this role to Chinese companies that wish to sell to Europe – they could avoid costly import duties by producing all or a large part of their products within the expanded...

A New Consensus on Free Trade

Gene Sperling March 1, 2004
During the Clinton presidency, “globalization with a human face” was the motto that underlined US trade policy. Today, under pressure from the outsourcing debate, both the Bush administration and the Democratic candidates are pushing to close the doors on open markets. Gene Sperling, director of economic programs at the Center for American Progress and national economic adviser during the Clinton...

Trade Is Not Bad For US Jobs

Martin Wolf February 24, 2004
Financial Times Senior Economist Martin Wolf defends outsourcing as a means for companies to improve productivity, just as free trade benefits businesses by giving them access to cheaper goods from the developing world. He argues that the only reason politicians are railing against free trade, instead of praising gains from innovation and productivity, is because they can use foreigners as...