Will Asian trade strategies unite or divide? Author: Shiro Armstrong, ANU Whether we like it or not, free trade agreements are — at best — only part of the solution to further international trade liberalisation, and their proliferation has resulted in a ‘noodle bowl’ of overlapping agreements throughout the Asia Pacific. Now we have the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP): mega-regional agreements that have emerged to attempt to deal with the noodle-bowl problem and, more hopefully, to define a way forward on new issues in the trading system.
The 12 Asia Pacific members negotiating the TPP are attempting to set rules for economic exchange that reflect commerce in the 21st century, including for intellectual property, data flows and high standards in areas such as labour and environment. Among its negotiating members are Australia, Japan, Malaysia, Mexico, New Zealand, Singapore, the United States and Vietnam. Both agreements have open accession as a core principle. Map of China's Trade and Foreign Infrastructure.
The TPP, Abenomics and America’s Asia Pivot. The TPP talks are critical for both Japan’s future and U.S. Asia policy. By Andre Stein and Miro Vassilev for The Diplomat August 06, 2013 Facebook0 Twitter0 Google+5 LinkedIn0 Japan’s entrance into the Trans-Pacific Partnership free-trade treaty negotiations is arguably the most important event in U.S. relations with the Asia-Pacific in the last decade. Just as the Soviet Union relied on a massive military arsenal for its power, Chinese influence derives overwhelmingly from its economy.
If implemented, the TPP including Japan fixes this economic gap in America’s Asia policy by increasing trade flows among its members, making them less dependent on trade with China and thereby strengthening their economic position relative to their giant neighbor. The TPP also complements Washington’s security relationships. U.S. strategy in Asia relies on the economic rejuvenation of Japan, which in turn relies on Abe’s three-pronged economic program. Getting close to China: How different states pivot to Asia. Author: Irvin Studin, University of Toronto Pivots to Asia today are primarily China-driven. On any reasonable analytic account, therefore, the Asian century refers mainly to everything concerned with the economic and strategic rise of China over the past three decades.
While most non-Asian countries currently seem broadly aware of the need for some species of Asia — or China — driven pivot, the character and intensity of the pivot among countries around the world varies greatly, depending on at least four factors: geography (or borders); the history of relations with China and Asia; whether the state has a unitary or federal structure; and the talent of the state’s political and strategic leaders. (Note that a China-driven pivot may also in some cases mean a pivot ‘away’ from China. The geography factor turns largely on relative proximity (and flying times) to China and to other major economic and strategic theatres (the United States, Russia, Europe). 'TPP must strike a balance in IP'
Business Times, Malaysia ’TPP must strike a balance in IP’ By Rupa Damodaran 22 July 2013 KOTA KINABALU: The Asia Pacific region is leading the world in mobile computing, enabling the small and medium enterprises (SMEs) to leapfrog into large business opportunities. If barriers are lowered through technology, what is to stop from more Skype, Angry bird or Google-type coming on board, said John Galligan of Microsoft Asia Pacific.
Social media has enabled them to have access to global supply chains and new markets, while cloud computing has also enabled greater collaboration across borders. Galligan, speaking at the Trans Pacific Partnership (TPP) stakeholders meeting here during the ongoing 18th round of TPP negotiations, said there must be a balance in intellectual protection (IP) to ensure that small businesses are protected. The TPP has to be forward thinking about technology and SMEs, he said. Yuan gains 34% against USD in past 8 years|Markets. BEIJING - The Chinese currency renminbi, or the yuan, has appreciated 34 percent against the US dollar since the exchange rate reform began eight years ago.
The central parity rate of the yuan stood at 6.17 yuan per US dollar on Monday, according to the China Foreign Exchange Trading System. The yuan advanced some 20 percent against the euro during this period. Experts said after eight years of appreciation, the yuan's exchange rate is close to the equilibrium level, and a general trend of two-way exchange rate fluctuation is coming into being. Since the beginning of the year until now, the yuan's value went up in 65 trading days and down in 63 trading days. China discontinued the yuan peg to the greenback on July 21, 2005, and moved into a managed floating exchange rate mechanism based on market demand and supply, with reference to a basket of currencies.
USA et Chine d'accord pour négocier un traité d'investissements. Reuters | 2013-07-12 USA et Chine d’accord pour négocier un traité d’investissements Les Etats-Unis et la Chine sont tombés d’accord pour relancer les négociations sur un traité d’investissements, suspendues depuis plusieurs années en raison de l’insistance de Pékin à exclure certains secteurs des discussions. Le secrétaire américain au Trésor, Jack Lew, s’est félicité de cet accord, disant y voir la confirmation que la Chine entend remplacer son modèle de croissance bâti sur les investissements lourds et les exportations par une croissance tirée par la demande intérieure. "La Chine a fait part de son intention de négocier un Traité d’investissement bilatéral qui inclura tous les investissements et tous les secteurs", a dit Jack Lew en marge des travaux de la session annuelle du Dialogue stratégique et économique entre les deux pays.
"C’est une avancée majeure, la première fois que la Chine s’engage ainsi avec un autre pays", a-t-il insisté. The rush toward Asia-Pacific FTAs. Japan Times, Tokyo Opinion The rush toward Asia-Pacific FTAs By Michael Richardson 17 July 2013 SINGAPORE – Following the recent launch of free trade negotiations between the United States and the European Union, there are now three mega-trade-and-investment liberalization blocs being shaped in various parts of the world.
Each is different in geographic coverage. But all have substantial economic clout. With multilateral negotiations under the World Trade Organization stalled, the big bloc negotiators are, by default, setting key rules and standards for global commerce in the 21st century. Of course, the three top economies — the U.S., China and Japan — have to be big players in this game. From a global perspective, economic activity breaks down into three segments: 6 percent growth in emerging markets (with Asia, minus Japan, playing a lead role); 2 percent growth in the U.S.; and no growth in the EU. Still, the U.S. There is some overlap in membership between the TPP and RCEP. Future of the world trading system: Asian perspectives. Authors: Richard Baldwin, Graduate Institute, and Masahiro Kawai and Ganeshan Wignaraja, ADBI The WTO risks losing its centrality in the world trading system due to its focus on 20th century trade issues and lack of progress in the Doha Round. Asia, meanwhile, has built a deep network of supply chains and is experimenting with new forms of regional trade governance.
Asia’s experience of open trade-led development offers lessons for other regions. Better coherence is also vital between Asia’s regional trade rules and global trade governance. The 1995 creation of the WTO — as an institutional extension of the GATT — held out the promise of an effective, rules-based world trading system where all countries were treated alike.
In addition to establishing a global judiciary for trade disputes, the WTO was expected to provide a forum for trade negotiations and other related functions. As Pascal Lamy, Director-General of the WTO, writes in his essay: Future_World_Trading_System. Govt to form strategy after July TPP talks. For Asean-6 countries, dairy demand is high, Business, Phnom Penh Post. Soaring dairy-consumption growth in the so-called ASEAN-6 – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – has been outpacing local supply, according to a new report by international financial services provider Rabobank released last week. While the inability to meet local demand is creating large trade opportunities and intense competition between international producers, dairy exporters trying to capture these markets still encounter structural challenges.
“We expect dairy consumption across ASEAN-6 to grow by 2.4 per cent per year through to 2020. This creates a requirement for an extra 3 billion litres of milk, which local players are ill-equipped to deliver,” Rabobank analyst Michael Harvey said in a press release. Factors that have been supporting the growth in dairy consumption in these markets include high birth rates, rising incomes, improving diets, growth in modern retailing, urbanisation and countrywide school-milk programs. Shanghai Breaks Ground with Free Trade Zone - New area is intended to liberalize cross-border business, and has inspired other cities to convince Beijing to let them follow suit By staff reporters Wang Xiaoqing, Fu Yanyan and Yu Hairong, and Hong Kong correspondent Dian Tian (Beijing) – From the Lingang New City in the farthest southeastern corner of Shanghai, heading northern through the Pudong Airport bonded zone and to the Waigaoqiao bonded zone in the north of the city, an area covering almost 28 square kilometers has been officially named a Free Trade Zone (FTZ), the first of its kind on mainland China.
The Shanghai Integrated Free Trade Zone, as the municipal government named it, is designed to be a testing ground for foreign-related reforms in four crucial areas: investment, trade, financial services and regulations. Differential policies can encourage trade between bonded areas and foreign companies, but because they often differ from one place to another, the compliance cost can run high for some trading companies. Speeding up development: Nawaz to induct ‘China cell’ into PM’s office. The cell will oversee all development projects in the country being carried out with Chinese help. The government will do its utmost to bring the infrastructure of Gwadar port at par with Hong Kong, Dubai and Singapore and turn the city into a major trade hub, says PM Sharif.
PHOTO: AFP/ FILE GUANGZHOU: Prime Minister Nawaz Sharif announced on Sunday that he will soon induct a ‘China cell’ in his office to supervise all development projects to be executed with the cooperation of Chinese companies in Pakistan. “The cell will oversee the execution of all such development projects in order to steer the country out of its crisis,” the premier told reporters in Guangzhou. Prime Minister Nawaz said his meetings with Chinese President Xi Jinping and Premier Li Keqiang and representatives of Chinese companies over Pakistan’s energy and infrastructure issues had been very fruitful.
“I have asked them to form a task force. Www.cigionline.org/sites/default/files/BRICS_ASIA_no3.pdf. 'Positive' sign on free trade pact|Asia-Pacific. Updated: 2013-07-03 01:12 By DING QINGFEN in Beijing and JOSEPH BORIS in New York (China Daily) China is becoming 'positive' toward the US-led Asia- Pacific free trade agreement, saying it may join the Trans-Pacific Partnership, although it will take time to do so, according to sources at the Ministry of Commerce. 'China is still doing its research (on the TPP),' said a source close to the issue. Consensus has been reached on the importance of the free trade pact, a step forward from some time ago, when many people were opposed to the proposal, an official told China Daily on condition of anonymity.
The US launched the TPP in 2010 in an attempt to strengthen trade relations with the Asia-Pacific region, and in April participating countries approved Japan joining the TPP talks. The Obama administration hopes to conclude talks on the proposed pact by the end of the year, but many trade experts expect them to stretch into 2014. 'The earlier we join, the more benefits we will enjoy.' China: ‘largest trading partner’ isn’t what it’s cracked up to be. The insight that for the first time Australia’s largest trading partner—China—is now no longer our primary security partner or even in the Western alliance has now been offered many times as a sign that enormous strategic changes are afoot for Australia and the region.
But Australia isn’t alone. China has become the largest trading partner for Japan, South Korea, Vietnam, Indonesia and India. It’s no wonder that an increasing number of commentators believe China’s strategic pull, based on its growing importance as a trading partner, will be irresistible in the near future. The facts speak for themselves: trade between China and major regional countries has been growing more rapidly over the past two decades than China’s already rapid economic growth. But is trade really as decisive a factor of future economic (and resulting strategic) orientation? Why focus on FDI rather than trade? There are few winners from the Mayor’s rash decision. Show less. SOEs Declining Role in China’s Foreign Investment | China Power. State-Owned Enterprises have traditionally dominated Chinese ODI. This is starting to change. Though overseas investment is a decidedly capitalist thing to do, the main players in China’s efforts to invest abroad are a vestige from the past: state-owned enterprises (SOEs).
As Chinese overseas investment experiences a dramatic rise, SOEs still do most of the investing. In 2005, SOEs were responsible for 100 percent of investments; in 2011, that number had decreased—to 89 percent, according to the Heritage Foundation. A 2010 Columbia University survey found that 16 of the top 18 foreign asset-holding Chinese companies were SOEs. 2011’s Going Out strategy, outlined in the 11th Five Year Plan (2006-2010), calls for increased overseas investment to “enhance China’s competitiveness,” and for the support of “companies in exploring resources overseas that were in short supply domestically.”
Additionally, as the U.S. There are some changes afoot for the role of SOEs in overseas investment. Southeast Asia: The Next Crisis? The region’s overheated economy faces a period of adjustment – and for some countries the correction could prove very painful. Southeast Asia, so long a byway of the world economy, has become a well-worn path for foreign investors seeking refuge from the continuing after-effects of the global financial crisis. They have come because the region has been surging ahead over the last few years, even as the West slumped, China readjusted and India stuttered. However, just when everything seemed to be going so well, cracks have begun to emerge in the foundations of the Southeast Asian boom.
A bust is still avoidable, economists believe, but the fate of the regional economy over the next couple of years probably depends more on events in Europe and other turbulent sectors of the global system than on the decisions of local governments and central banks. Too much of a good thing The Catch-22 for Southeast Asia is that, while economic success is welcome, too much of it can be dangerous. Central bankers added to the Chiang Mai decision-making mix. The challenge facing Asia’s Regional Comprehensive Economic Partnership. Seoul to become bridge between US, China through FTAs. Enough Talk about Why Asia is Important; Time for Action. Global value chains, trade policy and Asia. India’s Strategic Failure in Central Asia | The Diplomat. Xi-Obama Summit Ushers in New Era of Bilateral Relations | China Power. Rise of the RMB | The China Money Report. Yuan's internationalization could catch up with yen, British pound |Economy.
Asian gazing (7): the China choice. The Emerging Strategic Triangle in Indo-Pacific Asia | China Power. ASEAN-China Free Trade Area: Challenges, Opportunities and the road ahead. China-Pakistan Economic Corridor. The Promise and Future of Myanmar (Video) Central Asia, the new silk road? (Video) CA: At the Confluence of Change (Report) The story between the TPP and the RCEP. Japan To Lead Rule-Making In FTAAP. State of the Region 2012-2013.