Trade and Exchange Rates: The Joint Declaration of the Macroeconomic Policy Authorities of TPP Countries

2019 ◽  
pp. 499-520
Author(s):  
Matthias Helble ◽  
Pornpinun Chantapacdepong ◽  
Naoyuki Yoshino
Keyword(s):  
Exchange Rate ◽  
Dispute Settlement ◽  
Market Access ◽  
Macroeconomic Policy ◽  
Joint Declaration ◽  
Exchange Rate Misalignment ◽  
Trade And Exchange ◽  
Definition Of ◽  
Dispute Settlement Procedure ◽  
The International Monetary Fund

The original Trans-Pacific Partnership (TPP) agreement was the first regional trade deal explicitly to address the issue of exchange rate misalignment by attaching a “Joint Declaration of the Macroeconomic Policy Authorities” (Joint Declaration) to the main text. The declared objective was to avoid the use of currency devaluations as a means to alter market access commitments agreed to under TPP. A similar agreement is absent in the CPTPP. This chapter analyzes the Joint Declaration by studying the main elements and comparing them with existing reporting provisions of the International Monetary Fund and the World Trade Organization. We find that the Joint Declaration provisions would have increased the transparency of the central banks’ actions only marginally, as the transparency requirements were not different from the existing practices of most TPP members. Most importantly, the Joint Declaration failed in providing a definition of the concept of exchange rate manipulation and linking it to any dispute settlement procedure.

scholarly journals Effect of Exchange Rate Misalignment on Bilateral Trade Between Kenya and European Union: 2000-2016

2021 ◽  
Vol 17 (41) ◽  
pp. 58
Author(s):  
Charles Munene Gachoki ◽  
Susan Okeri ◽  
Julius Korir
Keyword(s):  
European Union ◽  
Exchange Rate ◽  
Bilateral Trade ◽  
Market Access ◽  
Trade Deficit ◽  
Important Variable ◽  
The European Union ◽  
Economic Fundamentals ◽  
Exchange Rate Misalignment ◽  
The Exchange Rate

The exchange rate is an important variable in international trade because a country's competitiveness is determined by the expectations on how trade reacts to its movements. To orient the economy outwards, Kenya has pursued various measures from the 1990s to the 2000s. Kenya also signed up for nonreciprocal trade with the European Union under the Cotonou agreement. Despite the export-oriented efforts, Kenya's trade has remained skewed towards imports and a widening trade deficit which seems to follow the weakening of the Kenya shilling. The main policy dilemma therefore, is how imports accelerated in an environment of unhindered European Union market access, hence the motivation of this study. The study adopted a dynamic modeling approach since previous and present values affect exchange rate and trade. The results show that the economic fundamentals drive the real exchange rate. In terms of misalignment, the exchange rate is overvalued to a maximum of 5.9 percent and undervalued up to 5.2 percent. The estimated misalignment hurts imports but has a positive, statistically insignificant effect on exports. The results of this study suggest that the monetary authority should ensure the exchange rate remains stable and within the 6 percent range while monitoring all the underlying determinants. Additionally, hedging instruments should be made available and affordable to traders.

Neutrality in 2020: A Reply to 1981 Stulberg

2021 ◽  
pp. 141-144
Author(s):  
Sharon Press ◽  
Bobbi McAdoo
Keyword(s):  
Dispute Resolution ◽  
Significant Contribution ◽  
Dispute Settlement ◽  
Theory And Practice ◽  
Critical Element ◽  
Wide Range ◽  
Definition Of ◽  
Dispute Settlement Procedure ◽  
Common Understanding

Joseph (Josh) Stulberg published The Theory and Practice of Mediation: A Reply to Professor Susskind in 1981. His thesis was direct and simple: a mediator’s commitment to neutrality is the critical element which “permits mediation to be an effective, principled dispute settlement procedure” (p. 86). Stulberg articulated for all of us—then and now—the centrality of neutrality and impartiality to the very definition of mediation. This articulation continues to be a significant contribution to the dispute resolution field; indeed, the Stulberg article deserves to be labeled “foundational.” We question, however, whether the 1981 commitment to neutrality Stulberg articulated is understood by mediator practitioners today in the same way he intended, given the wide range of disputes now subject to mediation. Stulberg wrote in 1981, “[p]aradoxically, while the use of mediation has expanded, a common understanding as to what constitutes mediation has weakened” (p. 85). Ironically, despite Stulberg’s very clear thesis, his article contained the seeds that contribute to confusion in the definition of mediation itself....

Non-Participation in Compulsory Procedures of Dispute Settlement

2018 ◽  
Author(s):  
Erik Franckx ◽  
Marco Benatar
Keyword(s):  
Russian Federation ◽  
Dispute Settlement ◽  
People’S Republic Of China ◽  
People's Republic Of China ◽  
International Courts ◽  
Republic Of China ◽  
Legal Proceedings ◽  
Joint Declaration ◽  
Peculiar Form ◽  
The Russian Federation

Erik Franckx and Marco Benatar consider the peculiar backlash in the form of states rejecting the jurisdiction of international courts and tribunals (ICs). They discuss how the People’s Republic of China (PRC) rejected jurisdiction in the Philippines v PRC arbitration. The authors draw comparisons with how the Russian Federation rejected the jurisdiction of an arbitration panel in the Arctic Sunrise case. But both states participated in the peculiar form of forwarding ‘position papers’. This allows states new modes of influencing the bench without formally participating in the proceedings, argues Franckx and Benatar. This may tempt other states to apply a similar approach. For example, Croatia has presented its views to an arbitration panel in a dispute with Slovenia, despite its non-participation after irregularities by one of the arbitrators. The PRC and the Russian Federation have also issued a joint declaration encouraging non-participation in international legal proceedings.

scholarly journals Mobile Money Use: The Impact of Macroeconomic Policy and Regulation

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 51
Author(s):  
Lorna Katusiime
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Financial Innovation ◽  
Macroeconomic Policy ◽  
Mobile Money ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper examines the effects of macroeconomic policy and regulatory environment on mobile money usage. Specifically, we develop an autoregressive distributed lag model to investigate the effect of key macroeconomic variables and mobile money tax on mobile money usage in Uganda. Using monthly data spanning the period March 2009 to September 2020, we find that in the short run, mobile money usage is positively affected by inflation while financial innovation, exchange rate, interest rates and mobile money tax negatively affect mobile money usage in Uganda. In the long run, mobile money usage is positively affected by economic activity, inflation and the COVID-19 pandemic crisis while mobile money customer balances, interest rate, exchange rate, financial innovation and mobile money tax negatively affect mobile money usage.

Who Settles Disputes? Treaty Design and Trade Attitudes Toward the Transatlantic Trade and Investment Partnership (TTIP)

2019 ◽  
Vol 73 (4) ◽  
pp. 881-900 ◽  
Author(s):  
Hyeonho Hahm ◽  
Thomas König ◽  
Moritz Osnabrügge ◽  
Elena Frech
Keyword(s):  
Dispute Settlement ◽  
Market Access ◽  
Critical Role ◽  
Public Support ◽  
Trade Agreement ◽  
Dispute Settlement Mechanism ◽  
Design Elements ◽  
Transatlantic Trade ◽  
Nationally Representative ◽  
Trade And Investment

AbstractWhat type of trade agreement is the public willing to accept? Instead of focusing on individual concerns about market access and trade barriers, we argue that specific treaty design and, in particular, the characteristics of the dispute settlement mechanism, play a critical role in shaping public support for trade agreements. To examine this theoretical expectation, we conduct a conjoint experiment that varies diverse treaty-design elements and estimate preferences over multiple dimensions of the Transatlantic Trade and Investment Partnership (TTIP) based on a nationally representative sample in Germany. We find that compared to other alternatives, private arbitration, known as investor-state dispute settlement (ISDS), generates strong opposition to the trade agreement. As the single most important factor, this effect of dispute settlement characteristic is strikingly large and consistent across individuals’ key attributes, including skill levels, information, and national sentiment, among others.

Extraterritorial Shrimps, NGOs and the WTO Appellate Body

1999 ◽  
Vol 48 (1) ◽  
pp. 199-206 ◽  
Author(s):  
Asif H. Qureshi
Keyword(s):  
United States ◽  
Dispute Settlement ◽  
Market Access ◽  
The United States ◽  
Consultation Process ◽  
Appellate Body ◽  
Wto Dispute Settlement ◽  
The Us ◽  
Wto Appellate Body ◽  
Dispute Settlement System

At the centre of the international trading order, under the framework of the World Trade Organization (WTO), lies a dispute-settlement system. This system offers a graduated conflict-resolution mechanism that begins with a consultation process; progresses to adjudication, through a panel system, and ends in an appellate process.1 Under this machinery, in October 1996 India, Malaysia, Pakistan and Thailand (the complainants) requested joint consultations with the United States, regarding the US prohibition on the importation of certain shrimps and shrimp products caught with fishing technology considered by the United States adversely to affect the population of sea turtles—an endangered species under CITES.2 The US prohibition arose from section 609 of Public Law 101–1623 and associated regulations and judicial rulings (hereafter referred to as section 609). In a nutshell the complainants claimed denial of market access to their exports, and the United States justified this on grounds of conservation. However, as a consequence of the failure of the consultations, the WTO Dispute Settlement Body established a panel, around April 1997, to consider a joint complaint against the United States in relation to section 609. Australia, Ecuador, the European Communities, HongKong, China, Mexico and Nigeria joined the complainants as third parties. In May 1998 the panel's report was published, containing a decision in favour of the complainants. In July 1998 the United States appealed to the WTO Appellate Body, and in October 1998 the Appellate Body issued its report.4

Czechoslovak Tariffs in the 1920s: An Example of Historical Specificity in Economic Policy

Slavic Review ◽  
2021 ◽  
Vol 80 (3) ◽  
pp. 523-543
Author(s):  
Oldřich Krpec ◽  
Vít Hloušek
Keyword(s):  
Exchange Rate ◽  
Policy Decision ◽  
Exchange Rate Policy ◽  
Heterogeneous Structure ◽  
Trade Surplus ◽  
Transportation Equipment ◽  
The First World War ◽  
Historical Specificity ◽  
Rate Policy ◽  
Trade And Exchange

Czechoslovakia was the first industrialized economy to substantially increase tariffs after the First World War. At that time, Czechoslovakia was highly export-oriented, with a large trade surplus in industrial goods. We argue that the introduction of tariffs was a consequence of the ethnically heterogeneous structure of the economy. German capital controlled the highly export-oriented light and consumer goods industries; Czech capital dominated in industries that were far less export-oriented or even import-competing, such as machinery, transportation equipment, and electrical goods. Trade and exchange-rate policy preferences of both groups clearly differed; however, the policy decision-making process (at least until 1926) was completely controlled by Czechoslovaks and Czech capital, explicitly committed to a nationalist takeover of Czechoslovakia's economy. This is why it was possible to implement an exchange rate and trade policy that ran contrary to theoretical expectations based on the general (national aggregate) indicators of the national economy.

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