Category Archives: Economics

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Trade Agencies Closed for Business with Government Shutdown

As a result of the partial government shutdown which began on December 22, 2018, about 800,000 federal employees are currently on furlough or working without pay.  Nine federal departments have been shutdown:  Department of Commerce; Department of Treasury; Department of Agriculture; Homeland Security Department; Department of the Interior; Deparment of Justice; Department of State; Department … Continue Reading

South Korea Approves Updated Trade Agreement

On Friday, December 7, 2018, the South Korean parliament approved a modified version of the U.S.-Korea Trade Agreement, otherwise known as KORUS.  With passage of the renegotiated agreement, Korea is now ready to implement the new terms on January 1, 2019. KORUS first went into effect in 2012, but many in the U.S. business community … Continue Reading

ITC Initiates Investigation of the Likely Impact of USMCA

Last Friday, the U.S. International Trade Commission (“ITC”) formally launched an investigation into the economic benefits of the new U.S.-Mexico-Canada Agreement (“USMCA”) that is to replace NAFTA. Under the Trade Promotion Authority (“TPA”) law, known as the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, the ITC must prepare a report that assesses the … Continue Reading

United States and South Korea Sign Updated FTA

On Monday, President Trump and President Moon Jae-in of South Korea signed a revised U.S.-Korea (known as “KORUS”) free trade agreement on the sidelines of the United National General Assembly meeting this week in New York.  In April 2017, President Trump indicated that he wanted to either renegotiate or terminate the then-five year old agreement.  … Continue Reading

Treasury Declines to Name China a Currency Manipulator

On April 13, 2018, the Treasury Department released its biannual report to Congress on the Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, which declined to formally label China a currency manipulator under the Omnibus Trade and Competitiveness Act of 1988 (the “1988 Act”). This is the third such report … Continue Reading

Trump Administration Considering Using IEEPA to Block Chinese Acquisitions

According to Bloomberg, the Trump administration is considering using the International Emergency Economic Powers Act (IEEPA) to block Chinese investments in industries or technologies “deemed important” to the U.S.  (This statute has been used primarily to authorize economic sanctions and embargoes administered by the Office of Foreign Assets Control).  To utilize IEEPA, the President must … Continue Reading

Global Trade Flows Are Expanding, But Is There a Reason for Optimism?

Last Friday, the CPB Netherlands Bureau for Economic Policy Analysis, as part of its World Trade Monitor, reported that global trade flows – the volume of export and imports of goods – was 4.5% higher in 2017 than in 2016.  This is an important finding because it marks the biggest rate of year-in-year expansion since … Continue Reading

Manufacturing Sector Leads Foreign Direct Investment in U.S., According to New Commerce Report

The U.S. Department of Commerce’s Bureau of Economic Analysis has released the 2016 figures in their data series on foreign direct investment in U.S. Businesses. This series allows businesses, researchers, and policy makers to gain insights into recent trends in foreign investment. Investments and the employment generated, are broken down by country of origin, industry … Continue Reading
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