Ukraine’s trade policy: Addressing supply-chain frictions
Bernard Hoekman, Jesper Jensen, David Tarr 29 November 2013
Two regional trade agreements are centre of attention in Ukraine: the Deep and Comprehensive Free Trade Agreement with the EU – that for the time being Ukraine has rejected – and the Eurasian Customs Union with Russia, that Ukraine has been invited (or pressured) to join. Rather than choosing between the two, Ukraine should focus on reducing policy frictions that negatively affect trade through processes that mobilise firms and industries on both sides of the border. The recent proposal by Ukraine to establish a joint commission among Ukraine, Russia and the EU to promote trade could be a step in this direction.
On November 21 2013, Ukraine suspended preparations for signing the Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union (EU) at the Third EU-Eastern Partnership Summit in Vilnius on November 28-29. In 2010, the Russian Federation, Belarus and Kazakhstan formed the Eurasian Customs Union (ECU) and have invited Ukraine to become a member. This has become a politically charged issue, generating great uncertainty that is likely to have negative consequences for investment and economic activity (see Handley and Limão 2013, Shepotylo 2013).
EU institutions International trade
WTO, barriers to trade, FTAs, global supply chain, Ukraine
Can FTAs support ‘Factory Asia’?
Jayant Menon 14 May 2013
Are free trade agreements good for ‘Factory Asia’? This column argues that rather than supporting ‘Factory Asia’, it is more likely that fragmentation trade has prospered despite the noodle bowl of overlapping FTAs in the region. Inter-regional FTAs, on the other hand, may have been able to indirectly support the growth of production networks among existing members, if they led to increased demand for the final goods that the networks produce.
Free trade agreements (FTAs) have been proliferating in Asia for more than a decade. Production networks and the product-fragmentation trade that they generate have been growing for a much longer period. In fact, since ‘Factory Asia’ emerged, well before FTAs (Baldwin 2008). They are clearly not necessary for the formation of production networks, but can they support production networks’ further growth and/or spread?
barriers to trade, free trade agreements, production fragmentation, global supply chain
Reinvigorating the trade policy agenda: Think supply chain!
Bernard Hoekman, Selina Jackson 23 January 2013
The revolution in manufacturing – increasingly known as ‘global value chains‘ – has changed the world of trade policy as much as it has changed the global industrial landscape. This column discusses new research suggesting that border management and transport and telecommunications infrastructure services matter far more than trade tariffs. Improving infrastructure and management would increase global GDP far more than the complete elimination of tariffs. However, it won’t be easy. Tackling supply chain barriers will require dynamic and responsive national and international trade policymaking procedures that are more in step with industrial practices.
International supply chains have become a fundamental feature of global commerce, with goods being processed – and value being added – in the multiple countries that are part of the chain.
Global governance International trade
barriers to trade, SMEs, global supply chain, small and medium-sized enterprises
Non-tariff measures and the WTO
Marc Bacchetta, Cosimo Beverelli 31 July 2012
The WTO and its predecessor the GATT have been remarkably successful in negotiating down tariffs over the past six decades. But trade is still a long way from free and since the global crisis, it is becoming even less so. This column reviews the facts, economics, and motives behind these new non-tariff barriers and discusses the challenges they pose for the WTO.
Data limitations make it difficult to document general trends in the use of non-tariff measures. Nevertheless, WTO internal sources of information suggest that the incidence of ‘public policy’ measures – that is, technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures – has been on the rise (on this and other protectionist measures see Evenett 2012).
WTO, barriers to trade, GATT, protectionism, non-tariff measures
Entry regulation: Still costly
Markus Poschke 29 January 2011
Despite recent progress, the cost of complying with entry regulation is still higher in continental Europe compared to Anglo-Saxon or Northern European countries. This column illustrates this point using data from the World Bank and presents some recent research on the negative effect of these entry costs on output and productivity.
For most affected countries, the recent European debt crisis at its root is also a growth crisis. It is then only appropriate that structural reforms and deregulation be still on the agenda. For instance, costs due to entry regulation are still relatively high in some continental European countries, with large knock-on effects on aggregate output and productivity.
International trade Microeconomic regulation
barriers to trade, protectionism
Freedoms, rules and services markets integration
Giuseppe Bertola 27 June 2007
Why are the markets for services so much more difficult to integrate internationally than goods markets?
The Treaties establishing the European Community (EC) provide for freedoms of movement aimed at depriving member countries’ governments of the power to restrain cross-border economic interactions. Prohibiting all barriers to movement and trade (or “negative integration”) yields a single market, which may or may not be characterised by “free and undistorted competition,” but certainly does require a single-policy framework.
barriers to trade, Bolkenstein Directive