Issue 58| February 20, 2015
Debate heats up in Congress over currency manipulation
The debate over currency manipulation is heating up in Washington, with advocates claiming that a bill granting the president trade promotion authority  without provisions against currency manipulation won't pass on Capitol Hill, and the Obama administration claiming that such provisions would kill any trade deal before it's completed. The U.S. Chamber of Commerce has pointed out that independent fiscal and monetary policies in the U.S., such as the stimulus package in 2009 and the Federal Reserves' "quantitative easing" program, could be put into question if strong wording against currency manipulation appears in legislation. Read more.
 
China invests $250 billion in Latin America as it slows down back home
China has promised to invest $250 billion in Latin America over the next 10 years, an effort led by the Chinese Development Bank which lends credit for future commodity deliveries and contracts with Chinese firms. This has given countries like Argentina, which went through a technical default last summer, access to credit to help finance infrastructure developments. Ultimately, the increasing investment in Latin America will lead to increased trade in the region with China, but the vulnerabilities of the new relationship remain to be seen. Read more.
 
India decides to continue providing sops to textile sector in current fiscal year
The Government of India has decided to continue with export concessions for the textile sector in the current fiscal year. This decision has met with U.S. opposition as the United States believes India no longer has a right to make these decisions in the textile sector under World Trade Organization (WTO) rules. According to the WTO, when a member country attains competitive status for a product it will have an eight-year time period to phase out of its subsidies. India claims that its eight-year period will end after 2018. Read more.
 
Schumer demands China to stop dumping low-priced products hurting U.S. manufacturers  
During his tour of Glen Fall Mills, New York Senator Charles Schumer made statements calling out China for dumping illegally low-priced products on the U.S. market.  Schumer states that China's dumping policies have impacted the country and demanded that Democrats and Republicans stop allowing such behavior to continue.  Eight U.S. paper mills have closed as a result of unfair competition, while foreign paper imports increased 44 percent from 2011 to 2013 and another 40 percent last year.  Finch Paper and several other firms hurt by unfair overseas competition have filed a formal complaint with the ITC. Read more.
 
U.S. delegation visits Asia to continue TPP negotiations
Representative Paul Ryan (R-WI), chairman of the House Ways and Means Committee, endorsed President Obama's position on currency manipulation, a move that most analysts said was critically important to advancing the Trans-Pacific Partnership (TPP) negotiations and giving Trade Promotion Authority to the president. Ryan stated that because other countries is East Asia are trying to shape regional trade relations, "Our trading partners need to know that the United States is serious about advancing its trade priorities and strengthening our ties in the region." Read more.
 
Protest movement in EU against food related free trade agreement with U.S.
EU consumers are growing increasingly concerned with the import of U.S. meat and vegetables.  Antibiotics, hormones and toxins that are allowed in the U.S. for meat products are banned in the EU, Australia, Japan and New Zealand. There is a growing trend toward rejecting U.S. food exports because of the many health dangers of processed foods sold by the U.S. Genetically modified foods are a huge issue for the EU and other countries which could cause the global exports of U.S. agriculture products to drop significantly. Read more.
 

Doing Business with the World Bank, March 18

 

Join the Global Initiatives Council to connect with Jay Heimbach, special representative for the World Bank Group, that will discuss the World Bank priorities and programs, including Renewable Energy and climate change issues. In addition to  sustainability in their $60 billion of loan programs in the developing world. 
  

Register Now! 

Compiled by Global Initiatives Interns Michelle Dong and Benjamin Smith.

For more information, contact Aaron Borboa, 213.580.7583.