Global Business & Economics Program

  • EU, China Agree to Deepen Trade Ties

    Both sides decide ‘there should not be forced transfer of technology’

    The European Union and China on April 9 agreed to strengthen their trade relationship, cooperate on WTO reform, widen market access, and not force businesses to hand over their intellectual property— the last a longstanding complaint of foreign investors in China.

    The announcement followed a meeting between European Council President Donald Tusk, European Commission President Jean-Claude Juncker, and Chinese Prime Minister Li Keqiang in Brussels.

    “We managed to agree a joint statement which sets the direction for our partnership based on reciprocity,” Tusk said.


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  • Diversity Builds Financial Resilience

    The diversity of financial institutions, with their differences in business models, liability structures, time horizons, and investment motivations could contribute greatly to financial resilience. Since the 2008 crisis, financial institutional diversity has helped sustain market liquidity while banks have curtailed their market-making activity [a readiness to buy and sell securities to accommodate their clients] due to regulatory changes and business strategies. Improving resiliency and liquidity in financial markets is critical to better finance the real economy, allocate risks properly, and support financial stability.
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  • Montanino in Il Sole 24: Solidale, integrata e competitiva è l’Europa sognata dagli italiani


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  • Kasperek Quoted in Vox on Trump Imposed 11 Billion Tariff on EU


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  • The Spark That Launched Brexit Has Returned and Could Torpedo Compromise

    The next week matters for European policy makers. EU finance ministers are meeting in Brussels on April 5 and 6. This will be followed by an emergency European Council summit on April 10 at which EU leaders will not only discuss Brexit, but also discuss the European Union’s position on negotiating a narrow free trade agreement with the United States. On April 12, European finance ministers and central bank governors will take part in important Group of Twenty (G-20) side discussions alongside the International Monetary Fund (IMF) and World Bank spring meetings in Washington. These leaders would have been focused on worrying signs of slumping global growth and trade tensions with the United States, but leaks to Reuters on April 3 suggest that policy makers are

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  • The WTO May Be Beyond Saving

    US President Donald J. Trump created ripples when he said on August 30, 2018, that if the World Trade Organization (WTO) doesn’t “shape up, I would withdraw from the WTO.” Trump’s comments highlighted growing complaints against the WTO — voiced most loudly by the Trump administration, but shared to various extents by other countries. Eventually, the Group of Twenty (G-20) Summit in Buenos Aires agreed on December 1, 2018, to start discussing WTO reform, with progress to be reviewed at the next G20 Summit in Osaka in June 2019.

    But significant differences remain in countries’ views of the WTO’s problems and the necessary remedies. Several reform proposals have been floated by various groups of countries, only to be promptly rejected by others. Since agreement is based on consensus of all 164 members of the WTO, progress is highly unlikely any time

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  • USMCA is Not a Done Deal. It Must Still Clear Three Legislative Hurdles

    On November 30, the leaders of the United States, Canada, and Mexico signed the US-Mexico-Canada Trade Agreement (USMCA), modernizing the 1994 North American Free Trade Agreement (NAFTA) and “rebalancing” trade relations between the three countries, according to the US administration.  Before the new pact officially takes effect, however, the legislatures of all three countries need to approve the agreement.

    The USMCA would preserve the massive trading and shared-production networks that support millions of jobs in the United States, Mexico, and Canada. Those networks support North America’s ability to compete effectively with China, Europe, and other economic powers. Approving USMCA this year would thus appear to be in the economic interest all three countries, providing certainty for the $1.3 trillion in three-way trade and for the many businesses, workers, and farmers that depend on the commerce and co-production that interlinks North America. Since USMCA will last

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  • Quiet, But Important, Progress in Transatlantic Trade

    Amid the chaos over Brexit, few have noticed the quiet, but steady, progress on the transatlantic trade policy agenda. The European Parliament voted on March 14 against a resolution that called on European Union member states not to endorse negotiating mandates that authorize the European Commission to start talks with the United States. The defeat of that resolution sets the stage for a productive spring season of trade talks between the United States and the EU that focus on non-tariff barriers, as we recommended in August 2018.


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  • Use Brexit Delay to Investigate Russian Money

    An opportunity arises from the British Parliament having voted to delay Brexit. If the British government gets approval from the European Union next week for an Article 50 extension, the months ahead should be used to finally get to the truth about the opaque sources of money spent in the 2016 referendum before implementing its results.


    This will only happen if British politicians and investigators prioritize quickly getting the public more conclusive answers. And it is important because the evidence revealed thus far raises the suggestion that the 2016 referendum on whether the United Kingdom should remain in the EU was targeted by a foreign adversary violating British sovereignty to undermine its democracy.


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  • US-EU Trade Negotiations: Talking Past Each Other

    Since the July 2018 agreement between US President Donald J. Trump and European Commission President Jean-Claude Juncker to start trade negotiations, US Trade Representative Robert Lighthizer and European Commission Trade Commissioner Cecilia Malmström have met five times—most recently on March 6. They have yet to agree on the issues to negotiate. The European Union wants to discuss only tariffs on industrial goods and easing assessment of conformity with technical standards; the United States insists that agriculture must be on the agenda.

    Beyond the lack of an agreed upon agenda and, in particular, the difficulties of dealing with agricultural issues, the differences between the United States and the EU on the governance process and approach to trade makes speedy progress in the trade talks unlikely. Meanwhile, the clock is ticking: Trump has until May 18 to impose tariffs—probably at 25 percent—on US imports of cars and car parts. A Department of Commerce report,

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