Topic Category: Economy

It seems so long ago now, but towards the end of the Obama administration, government officials from the United States and China were working diligently to try to conclude a bilateral investment treaty (BIT). There was some uncertainty about whether the two governments would reach an agreement, as well as whether the U.S. Congress would ratify the treaty, but nevertheless, these two leading economic powers were working together towards a joint vision in an important area of global economic governance.

Donald Trump was not the first U.S. presidential candidate to blame foreigners and their trade practices for America’s real and imagined economic woes. That is a time-honored tradition of U.S. electoral politics. But Trump is the first president — at least since Congress began delegating parts of its trade policymaking authority to the executive branch a century ago — to actually believe that protectionism will make America great. That alone makes trade war likely. Add a heaping sense of nationalist grievance and trade war appears imminent.

There’s no question that illegal immigrants tax our economy and deplete our government benefits, so they should be carefully vetted. We need to separate unskilled immigrants from those who come here legally on worker visas and possess the skills we need to grow our economy.

Major economic trends in international trade, globalization and automation were strongly reflected in the November 8th election of President Donald Trump. They also were underlining factors in the United Kingdom’s June 23rd decision to withdraw from the European Union, known as Brexit, and in support of populist politicians in Europe. Why is this?

During his campaign, President-elect Donald Trump made some very confrontational statements on trade. He called the Trans-Pacific Partnership (TPP) the “rape of our country.” He suggested renegotiating, or even withdrawing from, the North American Free Trade Agreement (NAFTA). And he accused China and Mexico, among others, of “cheating” the U.S. in trade.

Many factors are impacting economic growth. And volatility tops the list. According to a McKinsey Global Survey of executives, “Over the next five years nearly all respondents expect a disruption in the global economy due to volatility. And they are much likelier now — 43 percent, up from 29 percent in 2013 — to expect that potential disruptions to the economy will be very severe.”

Last month’s vote by the United Kingdom to leave the European Union gives control over trade policy back to British officials, who are now faced with the difficult task of creating new domestic institutions and formulating trade and other international economic policies. Some of their immediate work is obvious.

Americans have a love-hate relationship with international trade. Every day we enjoy its fruits, which include better and more affordable products; access to a larger pool of customers, suppliers and capital; and greater employment and business opportunities with foreign companies operating in the United States. Yet many of us cheer when politicians take to the stump and promise to erect trade barriers, restrict foreign investment and tear up trade agreements.

In a rare instance of bi-partisan cooperation, Democrats and Republicans voted to lift the ban on crude oil exports on December 18, 2015 as part of a budget deal for 2016. At present, U.S exporters are allowed to sell oil to Canada, Switzerland, and Spain, with smaller amounts (less than a million barrels annually) to China, Germany, South Korea, and Singapore.