Issue 63| July 24, 2015

U.S. weighs completing Pacific Rim trade deal without Canada

 

In the coming weeks, the Obama Administration is hoping to wrap up the negotiations that would establish a massive trade pact encompassing 40 percent of the world's economy, ranging from Japan to Chile.  The negotiations got a boost last month when Congress approved "fast-track" authority for President Barack Obama, which allows him to negotiate trade pacts knowing that Congress can approve or reject such deals, but not amend them.  Read more.

 

Science and technology agreements deserve more attention in Trade Promotion
 

The intense interest in promoting trade and economic development suggests the worthiness of a broader discussion regarding current mechanisms for bilateral agreements that can be utilized in a more targeted way. The U.S. should be engaged in a more pro-active strategic process to assess which of its Trans-Pacific Partnership (TPP) partners might be attractive candidates to negotiate a bi-national science and technology agreement.  Read more.

 

China's iron ore imports reverse as Rio sees new normal

 

The stagnating trade in iron ore and simultaneous jump in steel-product exports show the extent of the slowdown in China's steel industry, which is grappling with a property slump, overcapacity, and losses. Benchmark iron ore prices collapsed last week to the lowest level since at least 2009, while steel rebar sank to a multiyear low in China. Rio Tinto Group said on Monday that iron ore had declined to a so-called new-normal level, which may persist through to 2020.  Read more.

 

 

Trade negotiators tentatively agree on tariff cuts worth $1 trillion
 

The U.S. Trade Representative's office hailed a "major breakthrough" in what would be the first significant tariff-cutting deal at the World Trade Organization in 18 years.  Trade negotiators have tentatively agreed to eliminate tariffs on an array of technology products valued at $1 trillion in global commerce, which according to sources means Japan stands to benefit from ¥8 trillion of its annual exports becoming tariff-free. Read more.

 

India-Canada free trade agreement likely to be concluded by March 2016
 

The India-Canada free trade agreement is a comprehensive economic partnership agreement that was launched by both countries in 2010 which intends to reduce or eliminate duties on many products traded between the two nations by opening the services sector and facilitating investment proposals. This free trade agreement is likely to be concluded by March next year. Read more

 

The pros and cons of the TPP pact 

 

The TPP involves 12 Pacific Rim nations which account for 40 percent of the global economic output and 26 percent of world trade. The far-reaching deal aims to dismantle tariff and non-tariff barriers to trade and investment between the participant countries.  It also foresees streamlining regulations, and the implementation of common standards for the protection of foreign investment and intellectual property. Read more.

 

The Four Global Forces Breaking All the Trends, Aug. 26
 

Hear from the Director of McKinsey's Global Institute, Jonathan Woetzel, as he discusses the four fundamental disruptive forces that are at the heart of epic global economic changes, the major emerging trends that are evolving as a result of them and how leaders across all sectors can reset their intuition and prepare for the challenges of the future. Register now or contact Jasmin Sakai-Gonzalez.

Compiled by Global Initiatives Interns Jordan Ulves and David Word.

For more information, contact Jasmin Sakai-Gonzalez, 213.580.7569.