In The News

US House Republicans Defend Border Adjustment Tax

January 26, 2017
The US House of Representatives are considering a border tax, part of a plan to reform tax treatment of imports and exports – and prevent US firms from relocating headquarters overseas to evade taxes. The plan would replace revenues lost by another proposal to reduce the corporate tax rate to 20 percent. The legislators disagree with the president over details. Donald Trump prefers slashing the...

How Trump Would Rework NAFTA – And What Mexico, Canada Want in Return

Theophilos Argitis, Eric Martin, and Saleha Mohsin January 24, 2017
The North America Free Trade Agreement, in place since 1994, could benefit from updating. The agreement lifted most tariffs among Canada, Mexico and the United States and has had a net impact on growth and jobs for all three countries, according to multiple analysts. The Trump administration has announced plans to reopen NAFTA negotiations to create more US jobs. “Canada’s strategy, at this stage...

Britain Heads for “Hard” Brexit

January 20, 2017
British Prime Minister Theresa May outlined plans for Great Britain’s exit from the European Union. Parliament will vote on the deal. The country won’t attempt to stay in the European single market or the customs union, but will pursue access. The customs union eliminates tariffs among EU members and imposes common tariffs on outside goods, and “The single market allows the free movement of goods...

China Groups Take Out Insurance Against Blocking of Foreign Deals

Henry Sender January 12, 2017
Insurance policies cover risk, and Chinese companies anticipate more protectionism in the United States and Europe and an increasingly uncertain market for foreign investment. Chinese analysts also expect delays and increased fees associated with regulatory reviews. New policies are designed to protect against blocked takeovers in other nations: “several insurance groups, led by Aon, are...

China Launches Freight Train to Britain

Louise Moon January 11, 2017
China started the new year by dispatching the country’s first freight train to the United Kingdom, part of a larger effort to stimulate global trade. The train will depart from the city of Yiwu, a major commodities center, traverse central Asia and continental Europe, and reach its destination in London after almost 12,000 kilometers. “The railway is a major strategic development to assist Xi...

We Can’t Undo Globalization, But Can Improve It

Gary Pinkus, James Manyika and Sree Ramaswamy January 10, 2017
Global flows of trade and investment add economic value, and dismantling systems that rely on globalization would reduce prosperity. “While the impulse to erect trade barriers is understandable given the pain experienced by workers in a range of industries and communities in recent years, it is not the way to create lasting growth and shared prosperity,” notes a Harvard Business Review article. “...

Alaska Airport Is a Big Link for the Global Supply Chain

Will Swagel January 5, 2017
Alaska is sparsely populated with about 750,000 people. Still, the state’s largest city has emerged as a vital link along the global supply chain, and the Ted Stevens Anchorage International Airport takes full advantage of being within 10 hours by air to 90 percent of the industrialized world. The subarctic airport ranks fourth in the world for cargo and is a “natural place for refueling,”...