Monetary Policy between Mexico, United States of America, and Canada

This article examines the evolution of the monetary policy of the economies that make up the North American Free Trade Agreement ( NAFTA ), for the period 1980-2015. Based on an empirical analysis, which includes the scrutiny of stylized facts of the monetary variables of Canada, the United States and Mexico, causality tests Granger quality and error correction models ( VEC ), it is concluded that, in parallel to the trade integration process of these countries, the monetary side of NAFTA exhibits divergences and convergences that imply an asymmetric integration of the economy Mexican with the United States and, to a lesser extent, with Canada.

The Impact of Trade Agreement and War on Specific Indonesia-China Bilateral Trade

This research aims to evaluate the impact of trade agreements and trade war on specific Indonesia-China bilateral trade on four export-import commodities during 2014 - 2019. The methodology used are both descriptive analysis and RCA and EPD analysis. The entire analysis section tries to focus on important periods of economic relations between Indonesia and China, namely the implementation of the 2015 ACFTA and trade war. The results of the study indicate that Indonesia's selected export commodities have huge potential to be developed in bilateral trade with China, especially to maximize the benefits of ACFTA. The implementation of ACFTA 2015 has a positive impact on the growth of the four selected commodities as well as on its competitive analysis. The results of RCA analysis show the four commodities remain including highly competitive, even for palm oil tends to be specialized for Indonesia, however there are differences from EPD analysis results where the two Indonesian export commodities (Animal or Vegetable Fats/ HS15 and Mineral Fuels/ HS27) before the trade war was in the rising star position, it became a lost opportunity, but for the two imported Indonesian commodities, there was no change in staying in the rising star position.

Prosedur dan Efektifitas Mekanisme Penyelesaian Sengketa Perdagangan dan Investasi Dalam ASEAN

Trade and investment play an important role in the practice of relations between countries in the prospective economic cooperation efforts to increase the economic growth of each country. In this regard, ASEAN also has legal instruments that regulate transactions and investments among other countries. In the trade regime, ASEAN has several agreements such as the ASEAN Free Trade Agreement, ASEAN Trade in Goods Agreement, ASEAN Trade in Services Agreement, ASEAN Framework Agreement on Services, and so on. Meanwhile in the investment regime, ASEAN has the ASEAN Comprehensive Investment Agreement. One of the important components in a Regional Trade Agreement is the clause of a legally binding dispute settlement mechanism. In the trade regime, the system and mechanism of the dispute resolution procedures are separated from other trade agreements, the ASEAN Protocol on the Enhanced Dispute Resolution Mechanism. Meanwhile in the Investment regime, the system and mechanism of the dispute resolution procedure are regulated in the same agreement in the ASEAN Comprehensive Investment Agreement. This article will describe the procedural mechanism for the dispute resolution framework of the trade and investment regime in ASEAN, as well as focus on each dispute resolution system with the preferences of each participating country, with differences in the use of the dispute system in the WTO.

The Changing Shape of the World Automobile Industry: A Multilayer Network Analysis of International Trade in Components and Parts

In 2018, after 25 years of the North America Trade Agreement (NAFTA), the United States requested new rules which, among other requirements, increased the regional con-tent in the production of automotive components and parts traded between the three part-ner countries, United States, Canada and Mexico. Signed by all three countries, the new trade agreement, USMCA, is to go into force in 2022. Nonetheless, after the 2020 Presi-dential election, the new treaty's future is under discussion, and its impact on the automo-tive industry is not entirely defined. Another significant shift in this industry – the acceler-ated rise of electric vehicles – also occurred in 2020: while the COVID-19 pandemic largely halted most plants in the automotive value chain all over the world, at the reopen-ing, the tide is now running against internal combustion engine vehicles, at least in the an-nouncements and in some large investments planned in Europe, Asia and the US. The definition of the pre-pandemic situation is a very helpful starting point for the analysis of the possible repercussions of the technological and geo-political transition, which has been accelerated by the epidemic, on geographical clusters and sectorial special-isations of the main regions and countries. This paper analyses the trade networks emerg-ing in the past 25 years in a new analytical framework. In the economic literature on inter-national trade, the study of the automotive global value chains has been addressed by us-ing network analysis, focusing on the centrality of geographical regions and countries while largely overlooking the contribution of countries' bilateral trading in components and parts as structuring forces of the subnetwork of countries and their specific position in the overall trade network. The paper focuses on such subnetworks as meso-level structures emerging in trade network over the last 25 years. Using the Infomap multilayer clustering algorithm, we are able to identify clusters of countries and their specific trades in the automotive internation-al trade network and to highlight the relative importance of each cluster, the interconnec-tions between them, and the contribution of countries and of components and parts in the clusters. We draw the data from the UN Comtrade database of directed export and import flows of 30 automotive components and parts among 42 countries (accounting for 98% of world trade flows of those items). The paper highlights the changes that occurred over 25 years in the geography of the trade relations, with particular with regard to denser and more hierarchical network gener-ated by Germany’s trade relations within EU countries and by the US preferential trade agreements with Canada and Mexico, and the upsurge of China. With a similar overall va-riety of traded components and parts within the main clusters (dominated respectively by Germany, US and Japan-China), the Infomap multilayer analysis singles out which com-ponents and parts determined the relative positions of countries in the various clusters and the changes over time in the relative positions of countries and their specialisations in mul-tilateral trades. Connections between clusters increase over time, while the relative im-portance of the main clusters and of some individual countries change significantly. The focus on US and Mexico and on Germany and Central Eastern European countries (Czech Republic, Hungary, Poland, Slovakia) will drive the comparative analysis.

Motif dan Kepentingan China dalam Pembentukan Regional Comprehensive Economic Partnership (RCEP)

The establishment of the Regional Comprehensive Economic Partnership (RCEP) began because of the conflict between China and Japan. The establishment of RCEP is to create the largest trade agreement in the world because this cooperation unites regional countries with large economies. China as a country that has the largest economic level among RCEP member countries makes China control most of the market in the region. This RCEP helps China in dealing with the trade war between China and the United States, although it has not yet had a big impact. This paper uses a qualitative method and focuses on China's motives in determining the RCEP. The results of this study confirm that China's motive in determining the RCEP is to counter-balance with the TPP and China's good image to Southeast Asian countries. In addition, RCEP has a significant impact on the Chinese economy.

The Douro Demarcated Region

This chapter seeks to understand the motivations that lead companies to internationalize and how they do it since this has been a constant challenge for business research. For this purpose, a descriptive research was conducted with a qualitative strategy applied on different companies in the wine sector. International trade is a Portuguese tradition that started and reached its peak in the 16th century with the Portuguese and Spanish discoveries, which justifies this study. The wine industry, particularly in the Douro Region, has also always been closely linked to foreign trade and has even benefited from a historic trade agreement with the United Kingdom. The empirical results show that companies are practically born international. The size of the domestic market was the main justification for the demand for external markets. The constant evolution of markets and industries generates opportunities and potential threats to which companies must be able to respond.

Foreign Direct Investment and Poverty in Mexico

In this chapter, the authors want to analyze the regional imbalance of foreign direct investment (FDI) in Mexico and its relation with poverty levels for the 32 states that make up the country. The period studied covers from 1994 to 2020, taking as a temporary starting point the entry into force of the North American Free Trade Agreement (NAFTA); from the beginning of the 1980s until the beginning of the 1990s, FDI in Mexico maintained a tenuous growth, and from 1994, there was a considerable increase. Currently, developing countries, including Mexico, have positioned themselves as receiving entities of large flows of FDI. The research is based on an econometric scrutiny under the panel data methodology, which allows the authors to conclude that poverty is a factor that hinders a symmetrical distribution of FDI throughout the Mexican territory.

Benefits of key Asia-Pacific trade pact will be uneven

Significance RCEP, which involves the ten ASEAN states and five of the bloc’s Asia-Pacific partners, will be the world’s largest free trade agreement (FTA), covering more than half its exports and almost one-third of its GDP. Impacts RCEP should help drive economic recovery in South-east Asia in the short term as the region tries to manage a COVID-19 resurgence. Western states will benefit from RCEP commitments to maintaining open markets and supporting the global trading regime. A failure by members to formulate a unified response to climate change could lead to punitive trade measures from external players.

Negotiating Trade in Services with China from the Uruguayan Perspective

We focus on trade in services, and we aim at assessing the concessions made by China when negotiating trade agreements. Additionally, we shed light on the opportunities that Uruguay may have in exporting services to China in case of signing a Free Trade Agreement (FTA). The debate on this issue started in 2016 when Uruguayan President Vázquez visited China and with Chinese President Xi Jinping raised the possibility of signing a FTA. Since then, opposing arguments have been put forward. Unfortunately, the lack of bilateral information on trade in services is a limitation for this kind of studies. It is highlighted that there will be additional large gains which would emerge from trade in goods, cooperation or investments.