The European Union and Japan have finalized a trade agreement that would create the world’s largest open economic zone when it comes into effect in 2019.
The deal cuts tariffs, harmonizes product regulations and liberalizes public procurement for a market of 600 million people.
The EU and Japan account for 28 percent of the world’s economic output.
In a joint statement, European Commission president Jean-Claude Juncker and Japanese prime minister Shinzō Abe said the deal demonstrates their commitment “to keeping the world economy working on the basis of free, open and fair markets with clear and transparent rules.” Read more
Globalization Boosts Some Regions, Marginalizes Others
The Economist reports that globalization has marginalized once thriving industrial areas, such as Scranton, Pennsylvania, Teesside in the United Kingdom and France’s Pas-de-Calais.
It is no coincidence that Donald Trump, Brexit and Marine Le Pen got some of their highest vote shares in those regions. Read more
Conservatives Need to Make Capitalism Work for Everyone: Davidson
It is not inequality that bothers Brits, argues Ruth Davidson, the Scottish Conservative Party leader, in the new online magazine UnHerd. It’s injustice.
People expect that the CEO of a corporation will be the highest paid person on the payroll. What they don’t accept is that FTSE 100 bosses are paid 174 times the average worker’s wage in this decade — compared to 13 to 44 times in 1980.
Especially when many of their companies have received either big fraud-related fines or bailouts from the state.
The distinction matters, because it goes to a broader point. Read more
Europe, Japan Send “Strong Signal” with Trade Deal
European and Japanese leaders have announced a landmark trade agreement on the eve of the G20 summit in Hamburg, Germany, where America’s president, Donald Trump, is expected to press his case for protectionism.
The treaty has yet to be finalized. A summit in Brussels was hastily arranged to “send a strong signal,” as the EU’s trade commissioner, Cecilia Malmström, put it earlier this week.
“We believe we should not build walls or raise protectionism,” she said. Read more
As America Turns Inward, Europe and Mexico Double Down on Trade
The European Union and Mexico have committed to deepening their economies ties in the wake of Donald Trump’s inauguration as president of the United States.
In a statement released last week, EU trade commissioner Cecilia Malmström and Mexican economy secretary Ildefonso Guajardo announced that they would hold talks in April and June to renew a 2000 trade agreement between the two sides.
The EU hopes to expand the trade deal to broaden property rights protection, lower tariffs and include public tenders as well as trade in energy products and raw materials. Read more
Dubai, Singapore and the Future of Neoliberalism
It is the little things, they say, that count. The small places can tell us big things.
There are no smaller places than city states. Holdovers of bygone eras, they are quite nearly the oldest form of political organization our species has. Only tribalism is older and city states arose from settled tribes that over generations grew into legendary places like Ur, Jericho, Athens, the Yellow River city of Cai and the Indus Valley site of Harappa.
We have no empires left; a few kingdoms, though they keep dropping off the map. Nobody much minds. Yet if we were to lose our city states or our microstates, it would represent a collapse of the international order as we know it. Despite their tiny size, city states are bellwethers of their time. Read more
World Upside Down: China Defends Globalization from America
Chinese president Xi Jinping defended globalization in an address to the World Economic Forum on Tuesday, likening the world’s interconnectedness to a “big ocean that you cannot escape from.”
Xi didn’t mention Donald Trump, but his speech sounded like a warning to the incoming American president.
“Pursuing protectionism is just like locking one’s self in a dark room,” Xi said: “Wind and rain might be kept outside but so are light and air.” Read more