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Issue 36| February 22, 2013
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Latin America commits to open trade after protectionist year
On Jan. 26, leaders of Latin America and Europe met in Santiago, Chile to foster investment and trade, while reducing protectionism between the two continents. The summit underscored divisions that have created difficulties for Latin America to engage the global economy. The European Union is willing to skirt the political and ideological differences in seeking economic opportunities for both regions. The EU is Latin America's second largest trade partner, with 13 percent of its exports and imports in 2011, according to the United Nations databases. The economies of Latin America and the Caribbean are expected to have an estimated 3.6 percent growth this year. At closing statement of the summit, the EU and and the Community of Latin American and Caribbean States vowed to increase trade and investment, reduce protectionism and foster legal certainty for investors. Read more.
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Record oil exports shrink trade deficit as U.S. fills energy gap
U.S. trade deficit decreased to the lowest in two years due to its record petroleum exports, as America moves closer to achieving energy self-sufficiency. The deficit shrank 20.7 percent to 38.5 billion, according to the figures published by Commerce Department in Washington. With higher petroleum export and purchases of the fewest barrels of imported crude in almost 16 years, the smallest petroleum deficit since August 2009 was achieved. Stocks climbed after the report as corporate earnings topped estimates. The S&P index increased 0.5 percent. With a lower price per barrel, the value of petroleum purchases decreased to 21.2 billion in December, the trade shortfall excluding petroleum shank to 36.9 billion from 41.5 billion a month earlier. Meanwhile, imports of consumer goods climbed to a record 45.2 billion, reflecting a jump in purchases of clothing, furniture and appliances. With the increase of domestic petroleum production, makers of construction and mining equipment will benefit from improving prospects in the United States. Read more. |
The United States and European Union announce decision to launch negotiations on a transatlantic trade and investment partnership
Announced by President Barack Obama, based on recommendations from the U.S.-EU High Level Working Group on Jobs and Growth,co-chaired by U.S. Trade Representative Ron Kirk and European Trade Commissioner Karel De Gucht, the U.S. and EU will each initiate domestic process necessary to the creation of a Transatlantic Trade and Investment Partnership. It is noted that the transatlantic economic relationship is the world's largest, accounting for half of global economic output and nearly 1 trillion dollars in goods and services trade. A high-standard Transatlantic Trade and Investment Partnership would advance trade and investment liberalization and address regulatory and other non-tariff barriers. Through the negotiation, the U.S. and EU will not only expand trade and investment, but also contribute to the development of global rules that can strengthen the multilateral trading system. Read more. |
Japanese lawmaker says currency devaluation spurs growth
Kozo Yamamoto, a Japanese ruling party lawmaker, said that a race to devalue currencies would spark global growth albeit German criticisms of Prime Minister Shinzo Abe's monetary policies. Yamamoto noted that an exchange rate of 95- 100 yen to the dollar would be appropriate. Since Abe's re-election, the yen has fallen almost 10 percent against the U.S. dollar. Abe believes that his policy would "contribute to the stability of the entire economy and to growth." Germany, however, expressed concern in January, saying that competitive devaluation could create a spiral that is harmful. Read more. |
Turkey seeks opportunities in United States
The discussion regarding the envisioned Transatlantic Free Trade Area agreement continues. "In order to increase trade volume between the U.S. and Turkey, we need to specially manage the perceptions of Turkey in the U.S. Congress and the U.S. business world since this agreement will determine the economic order of the 21st century," said Turkish American Business Association President Ekim Alptekin. Turkey's exports to the U.S. totaled $5.6 billion, while imports increased to $14 billion in 2012. Read more. |
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Expanding U.S.-Egyptian trade and investment
Earlier this month, United States Trade Representative Miriam Sapiro and
Egyptian First Under Secretary of Industry and Foreign Trade and Head of the Commercial Service Anwar Elsahragty met to discuss different ways to expand U.S. and Egyptian trade and investment ties. Both sides agreed that greater economic cooperation will benefit both countries by supporting sound government policies that create jobs, boost investment and fuel economic growth. They also committed to specific actions to cooperate in the areas of small-and medium-sized enterprise development, agriculture, standards, good regulatory practices and intellectual property rights protection. In the months ahead, the United States and Egypt will pursue intensified cooperation on economic, trade and investment issues. Read more.
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Join us on April 17th, 9-10:30 a.m. for the next Global Initiatives Council session with special guest speaker Elizabeth Stephenson, principal at McKinsey & Company. Register Now!
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Compiled by Global Initiatives Interns Aaron Borboa and Owen Wang.For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569. |
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