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Trade's Security Exceptionalism
University of Miami Law School University of Miami School of Law Institutional Repository Articles Faculty and Deans 2020 Trade's Security Exceptionalism Kathleen Claussen Follow this and additional works at: https://repository.law.miami.edu/fac_articles Part of the International Trade Law Commons, and the National Security Law Commons ARTICLE Trade's Security Exceptionalism Kathleen Claussen- Abstract. At the core of U.S. trade law is an under-studied structural dichotomy. On the one hand, well-established statutory authorities enable the President to eliminate trade barriers through negotiations with U.S. trading partners. On the other hand, different, lesser-known authorities allow the President to erect trade barriers on an exceptional basis where necessary for U.S. economic security. Rather than thinking of free trade as a source of or tool for economic security as political theorists long have, our law codifies these authorities as though they are in contrast to one another-allowing departures from the free trade norm when security so demands. Further, the two categories of authorities suffer from a mismatch in what I call "trade delegation disciplines": While Congress kept tight controls on the President's free trade negotiations, it abandoned controls on the exceptional, security-driven authorities, empowering the executive to handle U.S. trade interests in an unbridled way that our nation's Founders feared. This Article is the first to identify how trade law has exceptionalized security. It develops an original typology of the categories of congressional delegations that constitute our exceptional trade apparatus. This structural account delivers both positive and normative payoffs. -
The COVID-19 Pandemic and International Trade
House of Commons International Trade Committee The COVID-19 pandemic and international trade First Report of Session 2019–21 Report, together with formal minutes relating to the report Ordered by the House of Commons to be printed 23 July 2020 HC 286 Published on 29 July 2020 by authority of the House of Commons The International Trade Committee The International Trade Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Department for International Trade and its associated public bodies. Current membership Angus Brendan MacNeil MP (Scottish National Party, Na h-Eileanan an Iar) (Chair) Robert Courts MP (Conservative, Witney) Mark Garnier MP (Conservative, Wyre Forest) Paul Girvan MP (DUP, South Antrim) Sir Mark Hendrick MP (Labour, Preston) Mark Menzies MP (Conservative, Fylde) Taiwo Owatemi MP (Labour, Coventry North West) Martin Vickers MP (Conservative, Cleethorpes) Matt Western MP (Labour, Warwick and Leamington) Mick Whitley MP (Labour, Birkenhead) Craig Williams MP (Conservative, Montgomeryshire) Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the internet via www.parliament.uk. Publication © Parliamentary Copyright House of Commons 2020. This publication may be reproduced under the terms of the Open Parliament Licence, which is published at www.parliament.uk/copyright. Committee reports are published on the Committee’s website at www.parliament.uk/tradecom and in print by Order of the House. Evidence relating to this report is published on the inquiry publications page of the Committee’s website. -
Working Paper 19-7: the 2018 US-China Trade Conflict After 40
WORKING PAPER 19-7 The 2018 US-China Trade Conflict After 40 Years of Special Protection Chad P. Bown April 2019 Abstract In 2018, the United States suddenly increased tariffs on nearly 50 percent of its imports from China. China imme- diately retaliated with tariffs on more than 70 percent of imports from the United States. This paper assesses what happened in 2018 and attempts to explain why. It first constructs a new measure of special tariff protection to put the sheer scope and coverage of the 2018 actions into historical context. It then uses the lens provided by the 2018 special tariffs to explain the key sources of economic and policy friction between the two countries. This includes whether China’s state-owned enterprises and industrial subsidies, as well as China’s development strategy and system of forc- ibly acquiring foreign technology, were imposing increasingly large costs on trading partners. Finally, it also examines whether the US strategy to provoke a crisis—which may result in a severely weakened World Trade Organization— was deliberate and out of frustration with the institution itself. JEL Code: F13 Keywords: Trade war, tariffs, retaliation, WTO Chad P. Bown is the Reginald Jones Senior Fellow at the Peterson Institute for International Economics. Author’s Note: A revised version of this paper is forthcoming in the China Economic Journal. Thanks to Eva Zhang for outstanding research assistance, William Melancon and Melina Kolb for assistance with graphics, and to Peter Schott and Judith Dean for assistance with data. I am also grateful for useful discussions and comments on an earlier draft from William Cline, Anabel Gonzalez, Egor Gornostay, Julien Gourdon, Bernard Hoekman, Gary Hufbauer, Brad Jensen, Soumaya Keynes, Maury Obstfeld, Tom Prusa, and Steve Weisman. -
Oral Evidence: the Covid-19 Pandemic and International Trade, HC 286
International Trade Committee Oral evidence: The Covid-19 pandemic and international trade, HC 286 Friday 5 June 2020 Ordered by the House of Commons to be published on 5 June 2020. Watch the meeting Members present: Angus Brendan MacNeil (Chair); Robert Courts; Mark Garnier; Paul Girvan; Sir Mark Hendrick; Mark Menzies; Martin Vickers; Matt Western; Mick Whitley; Craig Williams. Questions 216 – 238 Witnesses I: Soumaya Keynes, Trade and Globalisation Editor, The Economist Magazine; Professor Simon J. Evenett, Professor of International Trade and Economic Development, University of St. Gallen; and Marianne Petsinger, Senior Research Fellow, US and the Americas Programme, Royal Institute of International Affairs. II: Alan Wolff, Deputy Director-General, World Trade Organisation; and Peter Ungphakorn, former Senior Information Officer, World Trade Organisation. Examination of witnesses Witnesses: Soumaya Keynes, Professor Evenett, and Marianne Petsinger. Q216 Mark Garnier: Good afternoon to everybody. You would normally be expecting to see Angus MacNeil but, unfortunately, due to technology problems beyond anybody’s control, I am stepping in while he gets himself sorted out. Welcome to this afternoon’s session of the International Trade Select Committee’s inquiry on the effect of Covid-19 on international trade. I will start with some questions to you, Professor Evenett. Your organisation, Global Trade Alert, of which you are the co-ordinator, has been tracking global trade policy responses to the Covid-19 pandemic. What are the key features that are emerging from your data? Professor Evenett: This year there have been 579 trade policy changes that we have documented and, not surprisingly, over 330 of them are in the medical goods and medicines sector. -
Download the Transcript
TRADE-2019/02/01 1 THE BROOKINGS INSTITUTION SAUL/ZILKHA ROOM KIMBERLY CLAUSING: THE PROGRESSIVE CASE FOR FREE TRADE AND GLOBALIZATION Washington, D.C. Friday, February 1, 2019 PARTICIPANTS: Introduction and moderator: DAVID WESSEL Senior Fellow and Director, Hutchins Center on Fiscal and Monetary Policy The Brookings Institution Presentation: KIMBERLY CLAUSING Thormund Miller and Walter Mintz Professor of Economics Reed College Panelists: KIMBERLY ELLIOTT Visiting Fellow Center for Global Development SOUMAYA KEYNES U.S. Economics Editor The Economist LORI WALLACH Director, Global Trade Watch Public Citizen * * * * * ANDERSON COURT REPORTING 1800 Diagonal Road, Suite 600 Alexandria, VA 22314 Phone (703) 519-7180 Fax (703) 519-7190 TRADE-2019/02/01 2 P R O C E E D I N G S MR. WESSEL: Good morning. Welcome to Brookings and the Hutchins Center on Fiscal and Monetary Policy. I'm impressed to see that all of you have braved what passes for a blizzard in Washington. (Laughter) I want to assure you we have plenty of facilities here if you get trapped because we have an inch and a half of snow. We can take care of you for a few hours. I'm very pleased today to be helping celebrate Kim Clausing's new book, "Open: The Progressive Case for Free Trade, Immigration and Global Capital." The timing couldn't be better. We are, I think since the -- even before the last presidential election, engaged in a huge debate about whether globalization, immigration, free trade, flows of global capital are (a) responsible for everything good that's happened to the U.S. -
Why Trump Shot the Sheriffs: the End of WTO Dispute Settlement 1.0
WORKING PAPER 20-4 Why Trump Shot the Sheriffs: The End of WTO Dispute Settlement 1.0 Chad P. Bown and Soumaya Keynes March 2020 ABSTRACT On December 10, 2019, the WTO’s 25-year-old system of resolving disputes Chad P. Bown is the Reginald Jones Senior broke down. This paper explains why. It describes the dysfunctional system that Fellow at the Peterson preceded the WTO, when the United States dealt with politically troublesome Institute for International imports by using voluntary export restraints and increasingly resorted to the Economics. Soumaya Keynes is the Trade and “aggressively unilateral” Section 301 policy to resolve trade concerns. The WTO Globalisation Editor at was a compromise between the rest of the world and the United States, whereby The Economist. the latter accepted some constraints with the expectation that the new system of binding dispute settlement would serve its interests. But although the creation of the WTO resolved some concerns about American unilateralism in the short term, its system of handling disputes turned out to be politically unsustainable. JEL: F13 Keywords: WTO, dispute settlement, Appellate Body, antidumping, trade remedies Authors’ Note: This paper derives from our keynote address at the 20th Judicial Conference of the United States Court of International Trade on November 18, 2019. A revised version is forthcoming in the Journal of Policy Modeling. For helpful suggestions and discussions, we thank Anabel González, Egor Gornostay, Jennifer Hillman, Bernard Hoekman, Robert Koopman, Simon Lester, Petros Mavroidis, Marcus Noland, Jeff Schott, Nicolas Véron, Steve Weisman, and participants at the ASSA 2020 meetings in San Diego. -
Zeitenwende | Wendezeiten
Zeitenwende Wendezeiten Special Edition of the Munich Security Report on German Foreign and Security Policy October 2020 October 2020 Zeitenwende | Wendezeiten Special Edition of the Munich Security Report on German Foreign and Security Policy Tobias Bunde Laura Hartmann Franziska Stärk Randolf Carr Christoph Erber Julia Hammelehle Juliane Kabus With guest contributions by Elbridge Colby, François Heisbourg, Toomas Hendrik Ilves, Andrey Kortunov, Shivshankar Menon, David Miliband, Ana Palacio, Kevin Rudd, Anne-Marie Slaughter, Nathalie Tocci, and Huiyao Wang. Table of Contents Foreword 4 Foreword by former Federal President Joachim Gauck 8 Executive Summary 11 1 Introduction: The Munich Consensus 17 2 Security Situation: Zeitenwende 26 3 Dependencies: Wonderful Together, 50 Vulnerable Together 4 Investments: Instrumental Reasoning 74 5 Public Opinion: Folk Wisdom 106 6 Decision-making Processes: Berlin Disharmonic 144 7 Outlook: Wendezeiten 166 Notes 176 Endnotes 177 List of Figures 203 Image Sources 210 List of Abbreviations 211 Team 214 Acknowledgments 215 Imprint 217 ZEITENWENDE | WENDEZEITEN Foreword Dear Reader, In recent years, the Munich Security Conference (MSC) has highlighted a wide variety of security policy issues at its events in all corners of the world – from Madrid to Minsk, from Tel Aviv to New York, from Abuja Wolfgang Ischinger to Stavanger. In doing so, we focused primarily on international challenges. At our events, however, we were increasingly confronted with questions about Germany’s positions – sometimes with fear and unease about whether Berlin was, for example, taking certain threats seriously enough – but almost always with great expectations of our country. At home, on the other hand, people still regularly underestimate how important our country is now considered to be almost everywhere in the world. -
The Revival of Economic Nationalism and the Global Trading System
THE REVIVAL OF ECONOMIC NATIONALISM AND THE GLOBAL TRADING SYSTEM Ian M. Sheldon William McGuire Daniel C. K. Chow Cardozo Law Review __ (forthcoming 2019) Legal Studies Working Paper Series No. 441 March 29, 2018 This working paper series is co-sponsored by the Center for Interdisciplinary Law and Policy Studies at the Moritz College of Law This paper can be downloaded without charge from the Social Science Research Network: https://ssrn.com/abstract=3152299 Electronic copy available at: https://ssrn.com/abstract=3152299 THE REVIVAL OF ECONOMIC NATIONALISM AND THE GLOBAL TRADING SYSTEM Ian M. Sheldon,∗ Daniel C.K. Chow,∗∗ William McGuire∗∗∗ Cardozo Law Review (forthcoming 2019) ______________________ The election of Donald J. Trump to the US Presidency coincided with the US adoption of an “America First” policy in trade. This policy reflects an underlying theory of economic nationalism that is fundamentally at odds with the current approach of the multilateral trading system established by the GATT/WTO. The current multilateral system is based on a “positive sum game” theory, i.e. the view that cooperative trade concessions can increase the volume of trade for all nations involved and result in reciprocal and mutual benefits. A large body of theoretical and empirical work, discussed and analyzed in this Article, supports the conclusion that the GATT/WTO system has historically achieved significantly increased trade volumes on both a multilateral and national scale since its creation at the end of the Second World War. By contrast, President Trump’s economic nationalism holds that trade is a “zero sum game” in which a gain in trade by one nation must be accompanied by a corresponding trade loss by another nation. -
Meredith A. Crowley
Meredith A. Crowley Faculty of Economics, University of Cambridge Austin Robinson Building Sidgwick Avenue Cambridge, CB3 9DD, UK tel: +44 1223 335261 [email protected] http://meredithcrowley.weebly.com/ Current positions/affiliations/honors University of Cambridge Reader in International Economics, Faculty of Economics 2018 – present Keynes Fellow, University of Cambridge 2019 – present Fellow, St. John’s College 2013 – present University Lecturer, Faculty of Economics 2013 – 2018 Cambridge-INET (Institute for New Economic Thinking) Coordinator, Transmission Mechanisms and Economic Policy 2018 – present UK in a Changing Europe (UKICE), London, UK ESRC Senior Fellow 2019 – present Centre for Economic Policy Research (CEPR), London, UK Research Fellow 2016 – present UK Department for International Trade, London, UK Trade and Economy Panel (Academic Advisor) 2019 – present Freeports Advisory Panel (Academic Advisor) 2019 – present Trade and Agriculture Commission (Competitiveness Working Group Member) 2020 – present Kiel Institute for the World Economy, Kiel, Germany Member of the Scientific Advisory Council 2019 – present UK Department for Food, Agriculture and Rural Affairs, London, UK National Food Strategy Advisory Panel (Academic Advisor) 2019 – present UK Government Office for Science, Rebuilding a Resilient Britain Project 2020 – present Trade and Aid Working Group Member Previous positions/appointments/honors Bruegel, Brussels, Belgium Member of the Scientific Council 2018 – 2020 Nanjing University Visiting Professor November 2018 Shanghai University of Finance and Economics Visiting Professor, Summer School 2014, 2015 & 2019 Federal Reserve Bank of Chicago Senior Economist 2006 – 2014. Economist 2001 – 2006. American Law Institute Advisor, Principles of the Law of World Trade Project 2008 – 2012. Pew Charitable Trusts Advisory Board Member, Subsidyscope Project 2008 – 2012. -
The Semiconductor Industry Into Its Trade War with China
WORKING PAPER 20-16 How the United States marched the semiconductor industry into its trade war with China Chad P. Bown December 2020 ABSTRACT The US-China trade war forced a reluctant semiconductor industry into someone Chad P. Bown is else’s fight, a very different position from its leading role in the 1980s trade the Reginald Jones Senior Fellow at the conflict with Japan. This paper describes how the political economy of the Peterson Institute global semiconductor industry has evolved since the 1980s. That includes both for International Economics. a shift in the business model behind how semiconductors go from conception to a finished product as well as the geographic reorientation toward Asia of demand and manufactured supply. It uses that lens to explain how, during the modern conflict with China, US policymakers turned to a legally complex set of export restrictions targeting the semiconductor supply chain in the attempt to safeguard critical infrastructure in the telecommunications sector. The potentially far-reaching tactics included weaponization of exports by relatively small but highly specialized American software service and equipment providers in order to constrain Huawei, a Fortune Global 500 company. It describes potential costs of such policies, some of their unintended consequences, and whether policymakers might push them further in the attempt to constrain other Chinese firms. JEL: F13 Keywords: Export restrictions, supply chains, national security, semiconductors, Huawei, US–China trade relations Note: A revised version of this paper will be published in the East Asian Economic Review. It stems from a keynote given at the Organisation for Economic Co-operation and Development’s Global Forum on Productivity 2020. -
Biographies of Participants
11 December 2018 WTO Headquarters, Room W Updating Trade Cooperation: An Economic View Biographies of Participants Kyle Bagwell is the Donald L. Lucas Endowed Professor in Economics at Stanford University. He is also a Senior Fellow of the Stanford Institute for Economic Policy Research, a Research Associate of the National Bureau of Economic Research and a Faculty Affiliate of the Stanford Center on Global Poverty and Development. He works in the fields of International Trade, Industrial Organization and Game Theory. His research examines a range of theoretical and empirical questions relating to the purpose and design of GATT/WTO. He also explores theories of competition and cooperation in settings where asymmetric information is present. His research has been published in numerous academic journals, and in a book, The Economics of the World Trading System, co-authored with Robert W. Staiger. Emily Blanchard is an Associate Professor at the Tuck School of Business at Dartmouth College and a Research Fellow with the Center for Economic Policy Research. She has written extensively on how foreign investment and global value chains are changing the role of trade agreements in the 21st century, and on how globalization and education shape political and economic outcomes within and across countries. Her research is published in leading journals, including the Review of Economic Studies, Journal of International Economics, the Review of Economics and Statistics, and the World Trade Review. Chad P. Bown is Reginald Jones Senior Fellow at the Peterson Institute for International Economics. With Soumaya Keynes, he co-hosts Trade Talks, a weekly podcast on the economics of international trade policy. -
2019 – New York
Hosted by 2019 – NEW YORK 6 - 7 November, New York Programmed by worldtradesymposium.economist.com #worldtrade19 Hosted by PROGRAMME World Trade Symposium New York Open trade in an uncertain world November 6th-7th 2019 ∙ New York Global trade is in a state of upheaval, driven by protectionism, ever-increasing regulations and outdated trading systems. Technology is disrupting trade like never before, making processes more efficient and inclusive, breaking down barriers and opening new markets. These present new challenges—and new opportunities. The World Trade Symposium will convene business leaders, technology innovators, policymakers, thought leaders and economists to analyse these issues and suggest solutions and outcomes. What is needed to drive open trade for the benefit of all involved? Sessions will take a deep dive into the new technologies and platforms that are opening up trade and identify the opportunities presented by changing trends, as well as exploring how shifting consumer priorities are affecting the sustainability agenda. Attendees won’t just be debating key issues and swapping their stories, but will explore new ideas and solutions. CONFERENCE CHAIR SOUMAYA KEYNES, trade and globalisation editor The Economist MODERATORS VIJAY VAITHEESWARAN, US business editor, The Economist CHRISTOPHER CLAGUE, Managing editor, Asia and global editorial lead, trade and globalisation, The Economist Intelligence Unit Programmed by worldtradesymposium.economist.com #worldtrade19 Hosted by PROGRAMME WEDNESDAY 6TH NOVEMBER 12.00 pm Registration and networking lunch 12.45 pm Welcome from Finastra SIMON PARIS, chief executive, Finastra 12.55 pm Chair’s opening remarks SOUMAYA KEYNES, trade and globalisation editor, The Economist 1.05 pm Interview: Reshaping trade patterns Trade and manufacturing policy of the US in the light of trade war.