non-tariff barriers

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pages: 158 words: 45,927

Brexit: What the Hell Happens Now?: The Facts About Britain's Bitter Divorce From Europe 2016 by Ian Dunt

Boris Johnson, Doha Development Round, Donald Trump, energy security, low skilled workers, non-tariff barriers, open borders, Silicon Valley, UNCLOS, UNCLOS

It doesn’t really affect domestic law in other parts of society, like health or crime, but it tells firms what standards they have to produce to and forces countries to take those products, regardless of whether governments or companies want them. This recognition of standards reflects a key part of what makes trade work. It is something which presents one of the greatest dangers to Britain when it pulls away from Europe: non-tariff barriers. In recent years, as tariffs erode away, it is non-tariff barriers which preoccupy the thoughts of trade experts. Non-trade barriers are obstacles to trade outside of taxation. Some are insurmountable, like language. Others are not. Mutual recognition agreements are key to overcoming some of these problems. When two countries sign these agreements they acknowledge each other’s standards and paperwork on product testing and conformity in certain areas of their economy.

There was simply no way to square this with any approach other than leaving the single market. But this was not simply a plan for WTO rules. It was clear that Davis wanted to secure a trade agreement with the EU before leaving. In response to a question from Tory backbencher John Redwood on tariffs, he replied: ‘It is not just tariff barriers. We also have to negotiate non-tariff barriers. It is… in both Europe’s interest and our interest to have tariff-free and non-tariff barrier based trade. That is where the jobs are.’ Two days later, during prime minister’s questions, May said: ‘What we are going to do is be ambitious in our negotiations to negotiate the best deal for the British people – and that will include the maximum possible access to the European market for firms to trade with and operate within the European market.’

The scale of it is almost beyond comprehension, and experts – much derided during the campaign but highly sought after by Whitehall once the work had to be done – warn that it will probably take a decade or more to complete satisfactorily. Trade Brexit Should Britain stay in the single market, we will not need a trade deal. But if we do leave the single market we will need some sort of post-Brexit trading arrangement with the EU, or we will see the return of tariffs and non-tariff barriers to our largest market. People often assume that Article 50 covers administration, the law and trade. It actually only covers administration. The legal puzzle is Britain’s problem. Trade agreements – which come under the euphemism ‘future relationship’ – are something the EU member states are only expected to be ‘taking account of’. ‘Taking account of’ is wonderfully woolly phrase, giving the EU maximum flexibility.


pages: 193 words: 48,066

The European Union by John Pinder, Simon Usherwood

Berlin Wall, BRICs, central bank independence, centre right, collective bargaining, Doha Development Round, eurozone crisis, failed state, illegal immigration, labour market flexibility, mass immigration, Neil Kinnock, Nelson Mandela, new economy, non-tariff barriers, open borders, price stability, trade liberalization, zero-sum game

European economies had lost momentum during the hard times of the 1970s and all the governments accepted the single market project as a way to break out of what was then called eurosclerosis. The project was strongly backed by the more dynamic firms and the main business associations, especially since the Luxembourg ‘compromise’ had served to let non-tariff barriers to trade build up during the period. The successful abolition of tariffs on internal trade had demonstrated the value of a programme with a timetable. So the Commission produced a list of some 300 measures to be enacted by the end of 1992 in order to complete the single market by removing the non-tariff barriers. The Commissioner in charge of the project was Lord Cockfield, a former minister in the Thatcher government; and the programme was rapidly drafted in time to be presented to the European Council in Milan in June 1985. 5. Delors: single market, single currency, single-minded European Meanwhile the European Parliament had prepared a political project: a Draft Treaty on European Union, inspired by Altiero Spinelli, the leading figure since the 1950s among those federalists who saw the drafting of a constitution as the royal road to federation.

Whereas the programme for eliminating tariffs in the 1960s could be specified in the treaty in the form of percentage reductions, the removal of non-tariff barriers required a vast programme of Community legislation. Frontier formalities and discrimination resulting from standards and regulations, from public purchasing, and from anomalies in indirect taxation all had to be tackled. The Commission published a White Paper specifying that some 300 measures would have to be enacted and proposing a timetable for completing the programme within eight years. This was approved by the European Council and incorporated in the Single European Act, making completion of the programme by the end of 1992 a treaty obligation. The removal of non-tariff barriers was already implicit in the Rome Treaty, which prohibited ‘all measures having equivalent effect’ to import quotas.

January 2013 John Pinder Simon Usherwood Abbreviations ACP African, Caribbean, Pacific countries AFSJ area of freedom, security, and justice ALDE Alliance of Liberals and Democrats for Europe Benelux Belgium, Netherlands, and Luxembourg BRIC Brazil, Russia, India, and China CAP common agricultural policy CFCs chlorofluorocarbons CFSP Common Foreign and Security Policy CIS Commonwealth of Independent States CJHA Cooperation in Justice and Home Affairs Comecon Council for Mutual Economic Assistance Coreper Committee of Permanent Representatives CSDP Common Security and Defence Policy EAGGF European Agricultural Guidance and Guarantee Fund EC European Community ECB European Central Bank ECJ European Court of Justice (formal title, Court of Justice) Ecofin Council of Economic and Finance Ministers Ecosoc Economic and Social Committee ECR European Conservatives and Reformists ECSC European Coal and Steel Community ecu European Currency Unit (forerunner of euro) EDC European Defence Community EDF European Development Fund EEA European Economic Area EEC European Economic Community EFA European Free Alliance EFD Europe of Freedom and Democracy EFSF European Financial Stability Fund Efta European Free Trade Association ELDR European Liberals, Democrats, and Reformists EMS European Monetary System Emu Economic and Monetary Union ENP European Neighbourhood Policy EPC European Political Cooperation EPP–ED European People’s Party and European Democrats ERDF European Regional Development Fund ERM Exchange Rate Mechanism ESCB European System of Central Banks ESDP European Security and Defence Policy ESF European Social Fund ESM European Stability Mechanism ETS Emissions Trading Scheme EU European Union Euratom European Atomic Energy Community Gatt General Agreement on Tariffs and Trade (forerunner of WTO) GDP Gross Domestic Product GNI Gross National Income GNP Gross National Product GSP Generalized System of Preferences GUE/NGL European United Left/Nordic Green Left IGC Intergovernmental Conference Ind Independent MEP Member of the European Parliament Nato North Atlantic Treaty Organization NTBs non-tariff barriers OECD Organization for Economic Cooperation and Development OLP Ordinary Legislative Procedure OMC Open method of coordination OSCE Organization for Security and Cooperation in Europe PES Party of European Socialists PHARE Poland and Hungary: aid for economic reconstruction (extended to other Central and East European countries) QMV qualified majority voting (in the Council) SEA Single European Act SGP Stability and Growth Pact TACIS Technical Assistance to the CIS TEC Treaty establishing the European Community TEU Treaty on European Union TFEU Treaty on the Functioning of the European Union TSCG Treaty on Stability, Coordination, and Governance in the Economic and Monetary Union UN United Nations UNFCCC UN Framework Convention on Climate Change VAT value-added tax WEU Western European Union WTO World Trade Organization List of boxes 1 The Treaties 2 Structural funds and objectives 3 States’ net budgetary payments or receipts 4 Employment policy 5 Cotonou Convention, 2000–2020 6 EU agreements and links in the Third World, other than Cotonou and ENP List of charts 1 The Union’s institutions 2 Number of MEPs from each state, 2014 3 Party groups in the Parliament in 2012 4 Institutions of economic and monetary policy 5 Share of budget spent on CAP, 1970–2010 6 Breakdown of budget expenditure, 2012 7 Sources of revenue, 2011 8 Shares of world trade of EU, US, China, Japan, and others, 2010 9 How the EU is represented for Common Foreign and Security Policy 10 Direction of EU trade in goods by region, 2010 11 Shares of official development aid from EU, US, Japan, and others, 2011 12 Development aid from EU and member states by destination, 2010 List of illustrations 1 Winston Churchill at The Hague Photo by Kurt Hutton/Picture Post/Hulton Archive/Getty Images 2 Jean Monnet and Robert Schuman © Robert Cohen/AGIP/Rue des Archives, Paris 3 The Schuman Declaration Fondation Jean Monnet pour l’Europe, Lausanne 4 Edward Heath signing the Treaty of Accession Photo by Douglas Miller/Keystone/Getty Images 5 Jacques Delors Credit © European Union, 2013 6 Altiero Spinelli voting for his Draft Treaty Photo: European Parliament 7 European Council, 1979 Photo by Keystone/Hulton Archive/Getty Images 8 Council of Ministers Credit © European Union, 2013 9 European Parliament in session Photo: European Parliament 10 The first meeting of the Commission with President José Manuel Barroso, 2004 Credit © European Union, 2013 11 Court of Justice sitting Credit © European Union, 2013 12 Euro notes and coins Banknotes draft design © EWI 13 Kohl and Mitterrand at Verdun © Bettmann/Corbis 14 The Berlin Wall comes down Photo © Richard Gardner 15 The G8 Summit at Camp David, May 2012 Credit © European Union, 2013 The publisher and the authors apologize for any errors or omissions in the above list.


pages: 193 words: 63,618

The Fair Trade Scandal: Marketing Poverty to Benefit the Rich by Ndongo Sylla

British Empire, carbon footprint, corporate social responsibility, David Ricardo: comparative advantage, deglobalization, Doha Development Round, Food sovereignty, global value chain, illegal immigration, income inequality, income per capita, invisible hand, Joseph Schumpeter, labour mobility, land reform, market fundamentalism, mass immigration, means of production, Mont Pelerin Society, Naomi Klein, non-tariff barriers, offshore financial centre, open economy, Philip Mirowski, plutocrats, Plutocrats, price mechanism, purchasing power parity, Ronald Reagan, Scientific racism, selection bias, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, transatlantic slave trade, trickle-down economics, Washington Consensus, zero-sum game

But for developing countries in particular, this decrease went together with the introduction of a set of non-tariff barriers whose effect has also been to distort trade exchanges. ‘Non-tariff barriers’ refers to a set of measures such as quantitative restrictions (quotas for example), sanitary and phytosanitary standards, quality standards, administrative and customs procedures, non-tariff charges, etc. While some of these are justified by legitimate concerns (for example sanitary and phytosanitary standards), others may be motivated by protectionist concerns (for example, restrictions linked to ‘rules of origin’). In order to limit their use, the World Trade Organization (WTO) recommends that these non-tariff barriers be converted into customs tariffs that provide an equivalent level of protection. This process, called ‘tarification’, has led to the following paradox: countries that agreed to lower their tariff barriers sometimes 26 Sylla T02779 01 text 26 28/11/2013 13:04 inequalities of the trade system ended up with higher tariffs than those used before the agreements on the reduction of tariffs (Stiglitz and Charlton, 2005: 49–50).

.); however, tariff escalation applies at each phase of their processing; primary products for which the North competes with the South (cotton, sugar, rice, etc.) are generally subsidised and/or submitted to tariff peaks; manufactured products for which the South has a comparative advantage face tariff and non-tariff barriers (quotas, restrictions on rules of origin, etc.). In order to measure the combined impact of the distortions induced by these various trade policies, a number of indicators were developed, such as OTRI (Overall Trade Restrictiveness Index) and MA-OTRI (Market Access Overall Trade Restrictiveness Index). Four lessons can be learnt from estimates given on these in the Global Monitoring Report (World Bank and IMF, 2008, 2009). First, the levels of trade protection remain relatively high everywhere in spite of a downward trend. As a general rule, agricultural products are more heavily taxed than manufactured products. Second, non-tariff barriers have a more restrictive effect on trade than customs tariffs. Third, tariff and non-tariff barriers remain high on products for which LDCs have a comparative advantage.

Although this statement may be taken for granted, the issue remains: what is the implication of the efficiency diktat? Without a doubt, it means that the costs of production must not be so prohibitive that FT products cannot find buyers. At any rate, a mechanical relationship between ‘efficiency’ and ‘price competitiveness’ is assumed. Yet, many social determinants come into play in order to loosen the link between these two aspects: exchange rates, tariff and non-tariff barriers, etc. Some producer groups can be ‘inefficient’ from the point of view of ‘production’ while being ‘competitive’ from the point of view of price, and vice versa. A ‘lazy’ state may for instance manipulate its exchange rate in order to inject ‘artificial’ price competitiveness into domestic products that would probably not be available on the international market without these distortions.


pages: 131 words: 41,052

Why Europe Will Run the 21st Century by Mark Leonard

Berlin Wall, Celtic Tiger, continuous integration, cuban missile crisis, different worldview, European colonialism, facts on the ground, failed state, global reserve currency, invisible hand, knowledge economy, mass immigration, non-tariff barriers, North Sea oil, one-China policy, Panopticon Jeremy Bentham, pension reform, reserve currency, Robert Gordon, shareholder value, South China Sea, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, Washington Consensus

And once the governments of France and Germany were sucked into endless negotiations, they were less likely to go to war. The best way to change the facts on the ground was through gradual change – what Monnet called engrenage. Each agreement to co-operate at a European level would lead inexorably to another agreement that deepened European integration. Once Europe’s leaders had agreed to remove tariffs, they focused on non-tariff barriers such as regulations, health and safety standards, and qualifications. When many of the non-tariff barriers had been addressed by the creation of a single market, Europe’s leaders focused on the single currency. Wider and wider groups of politicians and civil servants now had a stake in European integration. Thousands of meetings took place between officials from different governments, which meant, quite simply, that they got to know each other very well.

Many people had argued that Europe should develop a presidential or parliamentary system modelled on the nation-state. But these critics were missing the point of the European Union. The reason that people do not turn out in their droves to vote for the European Parliament is not because it has no power. It is because none of the issues in which the EU specializes – trade liberalization, monetary policy, the removal of non-tariff barriers, technical regulation in the environmental and other areas, foreign aid, and general foreign policy co-ordination – appears anywhere on the list of issues that voters care about.15 In fact, none of the policies in the five most important issues for voters in Europe – health care provision, education, law and order, pension and social security policy, and taxation – are set by the European Union.


pages: 408 words: 108,985

Rewriting the Rules of the European Economy: An Agenda for Growth and Shared Prosperity by Joseph E. Stiglitz

Airbnb, balance sheet recession, bank run, banking crisis, barriers to entry, Basel III, basic income, Berlin Wall, bilateral investment treaty, business cycle, business process, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collapse of Lehman Brothers, collective bargaining, corporate governance, corporate raider, corporate social responsibility, creative destruction, credit crunch, deindustrialization, discovery of DNA, diversified portfolio, Donald Trump, eurozone crisis, Fall of the Berlin Wall, financial intermediation, Francis Fukuyama: the end of history, full employment, gender pay gap, George Akerlof, gig economy, Gini coefficient, hiring and firing, housing crisis, Hyman Minsky, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, investor state dispute settlement, invisible hand, Isaac Newton, labor-force participation, liberal capitalism, low skilled workers, market fundamentalism, mini-job, moral hazard, non-tariff barriers, offshore financial centre, open economy, patent troll, pension reform, price mechanism, price stability, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, Robert Shiller, Robert Shiller, Ronald Reagan, selection bias, shareholder value, Silicon Valley, sovereign wealth fund, TaskRabbit, too big to fail, trade liberalization, transaction costs, transfer pricing, trickle-down economics, tulip mania, universal basic income, unorthodox policies, zero-sum game

Provisions in recent trade agreements, going back to NAFTA, are designed to make it difficult, if not impossible, for new regulations to be imposed that adversely affect foreign investors, no matter what the social benefit. Corporations offer weak justification for their demands. They have said it is important to harmonize regulations and that different regulations act as non-tariff barriers to trade. They pleaded that all they are asking for is a reduction in these non-tariff barriers. However, when the corporations ask for harmonization, they typically mean doing so at the bottom, and not harmonizing up to the most stringent standards. The agenda of regulatory harmonization is actually an agenda for weakening regulations. But in most sectors and on most topics, we simply do not need to have full harmonization of regulations.

The only reason that patents, copyrights, and trademarks are in trade agreements is because it gave the governments of the advanced countries a sledgehammer with which to strengthen and enforce the rights of powerful domestic lobbies. The reason for not including intellectual property in trade agreements is not only because it is an arena in which trade ministers have no real competence, but it is also that trade ministries traditionally ally closely with producer interests and give short shrift to other societal concerns. In our discussion of non-tariff barriers, for example, we noted the increased risk that this alliance with producer interests across countries leads to a skewed regulatory regime. There is an even greater risk in the case of intellectual property. Two sectors for which intellectual property protection are particularly important, pharmaceuticals and entertainment (copyrights), are not representative of the economy as a whole. A regime designed for maximizing corporate profits in these sectors can hardly maximize societal welfare.

See home mortgages multilateralism, Trump and, 294, 296, 300–301, 311 multinational corporations, 198, 303–4, 318–20 Mundell, Robert, 33 NEET rates, 278 neoliberal (neoclassical) economics described, 13–14 limitations of, 14–16 perspective on retirees, 243 net public investment, 103–4 Netscape Navigator, 134 net wealth, taxation of, 190–91, 200 non-distortionary taxes, 187–88 non-tariff barriers, 317 North American Free Trade Agreement (NAFTA), 294–95 Obama, Barack, 211–12 OECD (Organization for Economic Cooperation and Development), 197 Office of the High Commissioner for Human Rights, 247 oligopolies, 129, 130, 220 One Belt, One Road initiative, 298, 302 Orderly Liquidation Authority, 181 Panama Papers, 196 Paradise Papers, 196 Paris climate accord, 328 patents, 144, 146–48 pension programs defined contribution systems, 248–49 informal economy adaptations, 247–48 job creation and, 246 neoliberal perspective on, 243 pension portability, 248 private sector failure, 243 privatizations, reversing, 244–46 public, misguided changes to, 243–44, 246–47 supplementing, with public option, 249–50 pharmaceutical companies intellectual property rules and, 145, 325 lack of transparency with, 312 place-based assistance, 274 Poland, 244, 245, 247, 271 political differences, 298–99 political divergence, 48–49 politics economics tied to, 95, 130 EU political rules, 10–11 of globalization, 221–22 Maastricht Treaty and, 75 Max Weber on, 9 political discontent, 2 political moment, current, 302–3 (see also globalization, mismanagement of) Portugal, 35, 36, 50, 219, 251 poverty rising, 218–19, 219 social protection and, 247–48 pre-distribution of market incomes, 223 Price Stability Doctrine, 18–19 private sector.


pages: 868 words: 147,152

How Asia Works by Joe Studwell

affirmative action, anti-communist, Asian financial crisis, bank run, banking crisis, barriers to entry, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collective bargaining, crony capitalism, cross-subsidies, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Deng Xiaoping, failed state, financial deregulation, financial repression, Gini coefficient, glass ceiling, income inequality, income per capita, industrial robot, Joseph Schumpeter, Kenneth Arrow, land reform, land tenure, large denomination, liberal capitalism, market fragmentation, non-tariff barriers, offshore financial centre, oil shock, open economy, passive investing, purchasing power parity, rent control, rent-seeking, Right to Buy, Ronald Coase, South China Sea, The Wealth of Nations by Adam Smith, urban sprawl, Washington Consensus, working-age population

However, the actual history of successful industrial development in Japan, Korea and Taiwan shows that at critical policy junctures each country increased regulation and protection to defend new industries. This occurred in the early 1960s in Japan, when the country instituted large tariff increases to defend new businesses being nurtured by MITI.234 And it happened in Korea and Taiwan in the 1970s when those states implemented their heavy industry drives. The same may now be underway, using non-tariff barriers, in China, despite the country’s 2001 accession to the World Trade Organisation. Perhaps the biggest, though rarely voiced, fear among historically literate economists at the IMF and the World Bank is that whenever industrial policy has been successful in the past, it has tended to lead to chronic trade surpluses. These in turn make for damaging imbalances in the global economy. Britain in the nineteenth century, the US in the first two-thirds of the twentieth century, and Germany and Japan from the late twentieth century to this day each ran big, sustained trade and current account surpluses once they became leading industrial powers.

Meanwhile, Korea’s GDP per capita in 2010 stood at USD20,600, double the level in 1997; its stock market, thanks to the Anglo-Saxon medicine, is a regional outperformer; and its consumers are finally beginning to enjoy the fruits of development in the form of cheaper consumer goods, better services and foreign holidays.243 One hesitates to declare that the timing of the IMF reforms in Korea was good. For one thing, some of the success of the Korean economy in the wake of 1997 reflects the government’s continued culling of weaker chaebol and effective use of non-tariff barriers to foreign competition, in line with traditional industrial policy.244 However, it is clear that the timing of the reforms in Korea was vastly better than that of the deregulation and privatisation instituted by the IMF in the Philippines in the 1980s, or in Thailand and Indonesia after the Asian crisis (not to mention IMF-like changes instituted unilaterally in Malaysia since Mahathir’s departure in 2003).

Already, Huawei lost out on a USD3 billion sale to Sprint-Nextel in the United States in 2010, and has been blocked from acquisitions which would have yielded it important technology on the basis of ‘national security’ concerns.41 Such impediments may affect more Chinese mid-stream firms in the future. Even if national security concerns are not invoked, developed country governments can deploy all kinds of other ‘non-tariff barriers’ to impede Chinese equipment sales. Since China does not itself operate open tenders for state procurement, and has not acceded to the WTO’s General Procurement Agreement (which regulates government purchases), the Chinese government has no legal recourse in such matters. Private firms from Japan and Korea have been able to enter rich countries by appealing direct to their consumers with cars, video cassette recorders and smart phones.


pages: 356 words: 112,271

Brexit and Ireland: The Dangers, the Opportunities, and the Inside Story of the Irish Response by Tony Connelly

air freight, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, call centre, centre right, Double Irish / Dutch Sandwich, eurozone crisis, Fall of the Berlin Wall, knowledge economy, LNG terminal, low skilled workers, non-tariff barriers, open borders, personalized medicine, race to the bottom, regulatory arbitrage, éminence grise

‘But the scale of the problem and the challenge filtered through. The prominence of the Irish issue is not least due to the effective information campaign by the Irish government.’ Ireland’s strategy had been evolving over very bumpy terrain since the referendum. The essential message was that Ireland didn’t want anything to change. Ireland would have to be able to trade freely with the UK, without any tariff or non-tariff barriers, and customs posts were not going to be acceptable. The Northern Ireland peace process and the Republic of Ireland’s economy depended on it. But the message on its own was not enough, even if Theresa May and Enda Kenny had repeatedly insisted, either jointly or individually, that there would be no return to the borders of the past. The Task Force had a clear mandate. It had to listen to ideas, but also spell out what was acceptable and not acceptable under EU law.

The business says that even if future arrangements between the EU and the UK are tariff-free, the paperwork needed for shipments will be ‘a major block to trade’. Furthermore, the company says, no consumer will want to pay import VAT when collecting their incoming parcel, even if there is no duty. The company worries that ‘most legislators and commentators are too far removed from the daily practical realities of trade’ to be fully aware of the significance of non-tariff barriers, such as customs controls. The business does have direct experience of the EU single market from which Britain and Northern Ireland will be departing. It has tried hard to develop business outside the EU as well. But the costs incurred by geographical distance mean the company is far from reassured by the British government’s claims that trade with the rest of the globe will easily make up for the loss of access to the single market.

That makes those cuts 40 per cent more expensive when going into the UK. If the UK wanted to trade its financial services under WTO rules, it would face many more restrictions. ‘People go to the WTO,’ says an Irish official, ‘and list their service concessions, which is one page. Then they bring out the telephone book, which is the service areas which they’re exempting from competition.’ But the real crunch would be on what are called non-tariff barriers. Access to markets is now more likely to depend on compliance with the regulatory systems of those markets. It means UK products will have to comply with EU rules. Even if most products in the UK already conform on the day of Brexit, they may not conform over time. And if those products require independent testing, the agencies in the UK that carried out the testing are no longer EU-certified.


pages: 823 words: 206,070

The Making of Global Capitalism by Leo Panitch, Sam Gindin

accounting loophole / creative accounting, active measures, airline deregulation, anti-communist, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Basel III, Big bang: deregulation of the City of London, bilateral investment treaty, Branko Milanovic, Bretton Woods, BRICs, British Empire, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collective bargaining, continuous integration, corporate governance, creative destruction, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, dark matter, Deng Xiaoping, disintermediation, ending welfare as we know it, eurozone crisis, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, floating exchange rates, full employment, Gini coefficient, global value chain, guest worker program, Hyman Minsky, imperial preference, income inequality, inflation targeting, interchangeable parts, interest rate swap, Kenneth Rogoff, Kickstarter, land reform, late capitalism, liberal capitalism, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, manufacturing employment, market bubble, market fundamentalism, Martin Wolf, means of production, money market fund, money: store of value / unit of account / medium of exchange, Monroe Doctrine, moral hazard, mortgage debt, mortgage tax deduction, Myron Scholes, new economy, non-tariff barriers, Northern Rock, oil shock, precariat, price stability, quantitative easing, Ralph Nader, RAND corporation, regulatory arbitrage, reserve currency, risk tolerance, Ronald Reagan, seigniorage, shareholder value, short selling, Silicon Valley, sovereign wealth fund, special drawing rights, special economic zone, structural adjustment programs, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transcontinental railway, trickle-down economics, union organizing, very high income, Washington Consensus, Works Progress Administration, zero-coupon bond, zero-sum game

Rules, not political considerations as such, were to govern the decision of whether a specific industry was eligible for protection.”8 What globalization in good part entailed in the 1980s and 1990s was the extension of this process of juridification to other states, above all through the US drive to overcome “non-tariff barriers.” The issue was clearly defined as early as 1971, in the Report to the President by the Commission on International Trade and Investment Policy (chaired by the CEO of IBM), which contended that the US had “not received full value for the tariff concessions made over the years because foreign countries have found other ways, besides tariffs, of impeding access to their markets.”9 By the late 1960s, in good part because of the significant flow of US manufacturing trade that already occurred within American MNCs’ global operations, they were already pushing strongly for the adoption of a “non-tariff barriers” strategy. But such barriers were seen as especially affecting the export of financial services (as well as communications, accounting, management, consultancy, and other such services) which, as we have seen, had already been identified inside the American state by the early 1970s as a key to solving balance-of-trade deficits.

With very few exceptions, the Treasury’s consistent and effective opposition to the use of countervailing duties in relation to investigations of unfair trading practices by other states through the crisis of the 1970s permitted it not only to fend off the implementation of domestic protectionist measures, but to use the threat of these as a lever for the liberalization of foreign markets, including in relation to what were increasingly being identified as “non-tariff barriers” associated with other states’ domestic regulations.78 As an internal Treasury memo on export policy and exchange rates put it in 1975, “a policy of international interdependence is politically unacceptable except where job losses through imports are offset by creating jobs in expanding export industries.” It especially stressed that, although the US enjoyed a comparative advantage not only in financial services but in those sectors where technology was most advanced, the examples of aircraft, computers, nuclear reactors, and synthetic materials showed that “the staggering cost of technology has reached levels that must be recovered from sales in excess of those that the domestic market can absorb.”

What was being targeted here was nothing less than a myriad of domestic laws and policies of other states—including the procurement practices, regulatory regimes, price controls, subsidies, and even general industrial policies—all of which could be designated as “unfair trade practices.”10 Unlike changes to tariff levels, agreements covering services, foreign investment, and intellectual property rights “required signatory governments to make substantive, and politically sensitive, changes to their domestic legislation and economic practices.”11 This focus on changing the domestic laws of other states to eliminate non-tariff barriers also contributed to containing protectionist pressures within the US by channeling them into much broader demands for liberalizing foreign markets, while at the same time complicating the conditions under which those affected at home could demonstrate unfair trade practices under the new juridified procedures. But trade liberalization beyond tariffs also meant that the weakness of the GATT in ensuring effective implementation of international trade agreements now needed to be addressed.


pages: 565 words: 164,405

A Splendid Exchange: How Trade Shaped the World by William J. Bernstein

Admiral Zheng, asset allocation, bank run, Benoit Mandelbrot, British Empire, call centre, clean water, Columbian Exchange, Corn Laws, David Ricardo: comparative advantage, deindustrialization, Doha Development Round, domestication of the camel, double entry bookkeeping, Eratosthenes, financial innovation, Gini coefficient, God and Mammon, ice-free Arctic, imperial preference, income inequality, intermodal, James Hargreaves, John Harrison: Longitude, Khyber Pass, low skilled workers, non-tariff barriers, Paul Samuelson, placebo effect, Port of Oakland, refrigerator car, Silicon Valley, South China Sea, South Sea Bubble, spice trade, spinning jenny, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, trade liberalization, trade route, transatlantic slave trade, transcontinental railway, upwardly mobile, working poor, zero-sum game

By the time the legislation reached the Senate, foreign ministries the world over sent protests to the State Department and boycotts were already under way; virtually all American economists of any stature-1,028 in all-signed a petition to Hoover pleading for a veto.30 To no avail. On June 17, 1930, he signed Smoot-Hawley into law and so set off retaliation and trade war. Covering tens of thousands of items, the bill seemed designed to offend every last trading partner. It deployed many "non-tariff barriers" as well. For example, bottle corks constituted about half of Spanish exports to the United States; not only did the new law increase the tariffs on corks to prohibitive levels, it also required that they be stamped with their country of origin, a process that actually cost more than the cork itself. The act slapped high tariffs on foreign watches, particularly inexpensive ones that competed with American "dollar watches."

Over the centuries both sectors have acquired great expertise in politics and propaganda and have thereby managed to escape, at great cost to consumers, the rigors of the new global marketplace. In most countries, farmers have succeeded in portraying themselves as the "soul of the nation," in spite of the fact that they constitute no more than a small percentage of the workforce in most developed countries. From the outset, the world's farmers and textile manufacturers were able to exclude themselves from the GATT framework and maintain high tariffs and, even more importantly, non-tariff barriers such as quotas, restrictions, and subsidies on both domestic production and exports. The survival of protection for textiles and agricultural products has clearly cost the world's developing nations dearly, as these are the two areas in which they have the greatest comparative advantages. Exactly how and why this occurred is a matter of some controversy. One interpretation is that GATT is yet one more mechanism of rationing crumbs from the white man's table to the world's poorest nations, crippling them in precisely those areas in which they are best able to compete.

The president demonstrated his famous talent for multitasking by combining these sessions with telephone conversations. On only one occasion did he ask his dedicated young aide to leave the room so that he could answer a call in private. The caller was neither the British prime minister nor the pope, but Alfonso ("Alfie") Fanjul.56 Since the inception of GATT, virtually all nations have sidestepped its best efforts to lower barriers to agricultural trade-the rich nations with non-tariff barriers (mainly subsidies) and the poor ones with direct tar- iffs.57 After the September 11 attacks, the United States and Europe convened the Doha Round of GATT talks under the auspices of the newly formed World Trade Organization (WTO)-the successor to the ITO. The Doha Round explicitly sought to end all subsidies by 2013 in order to alleviate poverty in the developing world, the breeding ground for international terrorism.


pages: 40 words: 11,939

9 Lessons in Brexit by Ivan Rogers

Boris Johnson, continuous integration, imperial preference, non-tariff barriers

And again, the public needs to be aware of the big trade-offs that are coming next…or resentment when the next set of climb-downs begins will be off the scale. So far, both during the referendum and since, the trade debate has been dominated by trade in goods, tariffs issues and some discussion of the impact on manufacturing supply chains of departing the Single Market and Customs Union. I don’t want to be excessively unkind here, but politicians find goods trade and tariffs more graspable than services trade and the huge complexities of non-tariff barriers in services sectors. They rarely grasp the extent to which goods and services are bundled together and indissociable. They even more rarely grasp how incredibly tough it is to deliver freer cross-border trade in services which, by definition, gets you deep into domestic sovereignty questions in a way which makes removing tariff barriers look easy. Services sectors represent over three quarters of our economy.


pages: 453 words: 117,893

What Would the Great Economists Do?: How Twelve Brilliant Minds Would Solve Today's Biggest Problems by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, low-wage service sector, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

Free trade agreements (FTAs) such as the EU’s single market, aim to eliminate most of them. But, a number of governments use tariffs to protect their industries from competition from bigger global rivals until they are more mature. Labour groups also want protection for domestic jobs. So, tariffs are more than just an economic decision to impose a tax. There are often political motives behind their imposition. There are also non-tariff barriers (NTBs) to add to the mix. These are the other ways to be protectionist without imposing tariffs, such as through insisting on standards for certain industries that can restrict imports. For instance, Thai prawn exporters found it hard to meet American standards for the type of net that allowed them to sell to the US. Regulations matter even more for the services sector, which is the biggest part of the British, American and most other major economies.

joint-stock companies Jones, Homer Journal of Economic Perspectives Journal of Political Economy JPMorgan Juncker Plan Kahn, Richard Kant, Immanuel Keynes, John Maynard and the backlash against globalization and the Bloomsbury Group and Bretton Woods System and budget deficits counter-cyclical policies and crowding out on depression/recession The Economic Consequences of the Peace fiscal activism and Friedman The General Theory of Employment, Interest and Money and government spending on government’s role in economy and Hayek and investors Keynesian revolution legacy life and times of and Marshall and Niemeyer and paradox of thrift at Paris Peace Conference Prices and Production and public investment and Robbins Robinson and Keynes/Keynesian economics and Schumpeter and ‘socializing investment’ A Tract on Monetary Reform and the Treasury A Treatise on Money wealth Keynes, John Neville Khrushchev, Nikita Knight, Frank Kodak Korea North South Krugman, Paul Krupp Kuznets, Simon labour force growth labour productivity and work incentive laissez-faire landowners Lassalle, Ferdinand Latin America currency crisis (1981–82) see also specific countries League of Nations Lehman Brothers Lenin, Vladimir Leontief, Wassily Lewis, Arthur Lewis, Barbara (‘Bobby’) Life Extension Institute Linda for Congress BBC documentary London London School of Economics and Political Science London Stock Exchange Long Depression (1880s) Lopokova, Lydia Louis XIV LSE see London School of Economics and Political Science Lucas, Jr, Robert Ma, Jack (Ma Yun) Maastricht Treaty macroprudential policy see also central banks; financial stability Malaysia Malthus, Thomas Manchester Mandela, Nelson manufacturing additive (3D printing) automation in China and deindustrialization GDP contribution in UK German high-tech and industrialization see also industrialization Japan ‘manu-services’ ‘March of the Makers’ mass-manufactured goods and national statistics reshoring rolling back deindustrialization process and Smith trade patterns changed by advanced manufacturing US Mao Zedong Maoism ‘March of the Makers’ marginal utility analysis marginalism market forces/economy ‘Big Bang’ (1986) competition see competition and economic equilibrium see economic equilibrium emerging economies see emerging economies Hayek and the supremacy of market forces ‘invisible hand’ and laissez-faire and Marx 4 self-righting markets supply and demand see supply and demand Marshall, Alfred on approach to economics and the backlash against globalization and the Cambridge School and decentralization Economics of Industry and education’s role in reducing inequality and inequality and Keynes and laissez-faire legacy life and times of marginal utility analysis and Marx and poverty Principles of Economics and utility theory Marshall, Mary, née Paley Marx, Heinrich Marx, Henriette, née Pressburg Marx, Jenny, née von Westphalen Marx, Karl and agriculture and the backlash against globalization Capital and capitalism and China and class Communist Manifesto (with Engels) communist theories A Contribution to the Critique of Political Economy doctoral thesis The Eighteenth Brumaire of Louis Bonaparte and Engels journalism life and times of and Marshall and rate of profit and Ricardo and Russia on service sector workers surplus value theory and the Young Hegelians Marx, Laura Marx, Louise Marxism and the Austrian School and unemployment see also Marx, Karl Mason, Edward mathematical economics Mauritius May, Theresa Meade, James median income Menger, Carl mercantilist policies see also Corn Laws Merkel, Angela Mexico middle class China and economic growth and economic inequality and European revolutionaries income and industrialization and Keynes and Heinrich Marx as proportion of world population and Schumpeter social resentment US Mill, James Mill, John Stuart On Liberty Principles of Political Economy Minsky, Hyman Mises, Ludwig von Mitchell, Wesley mobile phones/smartphones monetarism see also Friedman, Milton monetary policy and Friedman tools see also quantitative easing (QE) see also central banks monopolies and Marx natural and Robinson and Schumpeter and Smith and Sraffa monopsony Mont Pelerin Society Morgenthau, Henry mortgage-backed securities (MBS) mortgage lending and the 2008 financial crisis sub-prime Myanmar Myrdal, Gunnar Napoleon I Napoleon III Napoleonic Wars national/official statistics China UK US national debt Austria and central banks China and creditors and debt forgiveness and deficits euro area and foreign exchange reserves and investment Japan major economies owed to foreigners and quantitative easing and Ricardian equivalent UK US Vietnam National Health Service (UK) National Infrastructure Commission (UK) Navigation Acts neoclassical economics convergence hypothesis ‘neoclassical synthesis’ New Neoclassical Synthesis see also Fisher, Irving; Marshall, Alfred; Solow, Robert Neoclassical Synthesis see also Samuelson, Paul New Classicists see also Lucas, Jr, Robert New Deal New Institutional Economics see also North, Douglass New Keynesians see also Stiglitz, Joseph New Neoclassical Synthesis New Rhineland News (Cologne) New Rhineland News: Review of Political Economy (London) new trade theory New York Herald New York Times New York Tribune Newcomb, Simon Newsweek Niemeyer, Sir Otto Nissan Nixon, Richard Nokia non-tariff barriers (NTBs) Nordhaus, William North, Douglass and the backlash against globalization and development challenges doctoral thesis The Economic Growth of the United States from 1790 to 1860 and institutions Institutions, Institutional Change and Economic Performance life and times of Nobel Prize path dependence theory and Smith North, Elizabeth, née Case North Korea Northern Rock Oak Ridge National Laboratory Obama, Barack Occupy movement oil industry Organisation for Economic Co-operation and Development (OECD) Osborne, George Overseas Development Institute (ODI) Oxford University Balliol College Paine, Thomas Paley, Mary Paris Peace Conference path dependence theory see also North, Douglass Peel Banking Act Philips, Lion Philips (electronics company) physical capital Physiocrats Pigou, Arthur Cecil Piketty, Thomas pin-making Pinochet, Augusto Ponzi finance populism Portugal poverty aid and development see economic development challenges eradication/reduction frictional and Marshall and Marx and median income people lifted from in South Africa productivity and agriculture ‘benign neglect’ of Britain’s productivity puzzle and computers and economic growth and education and factor reallocation and Germany and Hayek incentives and industry/industrial revolution and innovation and investment Japan and jobs labour see labour productivity and land low and Marshall moving into higher sectors of and pricing raising and Schumpeter and secular stagnation slow economic and productivity growth and the future and specialization and technology total factor productivity and trade and wages Prohibition protectionism agricultural see also Corn Laws Navigation Acts public-private partnerships public investment and Keynes public spending general government spending see government spending public investment see public investment squeeze see also austerity Puerto Rico quantitative easing (QE) Quantity Theory of Money see also Friedman, Milton; monetarism; Equation of Exchange Rand, Ayn RAND Corporation rate of profit rational expectations theory Reagan, Ronald recession/depression debt-deflation theory of depression Great Depression see Great Depression (1930s) Great Recession (2009) Greece ‘hangover theory’ of Hayek on and Keynes Long Depression (1880s) second recession (1937–38: recession within the Depression) in UK 1970s redistribution Regional Comprehensive Economic Partnership (RCEP) Reich, Robert reindustrialization Reisinger, Anna Josefina Remington Rand rent-seeking research and development (R&D) investment China Research in Motion (RIM) retail trade Rhineland News Ricardian equivalence Ricardo, David and the backlash against globalization and class comparative advantage theory and the Corn Laws Essay on the Influence of a Low Price of Corn on the Profits of Stock The High Price of Bullion international trade theory as a landlord life and times of as a loan contractor and Marx On the Principles of Political Economy and Taxation and Schumpeter and Smith wealth Ricardo, Priscilla Robbins, Lionel Robinson, Austin Robinson, James Robinson, Joan The Accumulation of Capital and the AEA and the backlash against globalization and communism Economic Philosophy The Economics of Imperfect Competition Essays in the Theory of Employment and imperfect competition Introduction to the Theory of Employment and Keynes and Keynesian economics life and times of and monopolies monopsony theory and Schumpeter and unemployment wage determination theory robotics Rodrik, Dani Rolls-Royce Roosevelt, Franklin D New Deal Russia 1905 Revolution and Lenin and Marx Samsung Samuelson, Paul and the backlash against globalization Economics factor-price equalization theorem Nobel Prize savings for capital investment and inflation and Keynes and the ‘paradox of thrift’ Say, Jean-Baptiste Schmoller, Gustav von Schumpeter, Anna, née Reisinger Schumpeter, Gladys, née Seaver Schumpeter, Joseph and the backlash against globalization as banker/investor Business Cycles and capitalism Capitalism, Socialism and Democracy ‘creative destruction’, innovation and ‘The Crisis of the Tax State’ and the Econometric Society economics and entrepreneurs on Fisher and Hayek History of Economic Analysis and Keynes legacy life and times of The Nature and Content of Theoretical Economics and perfect competition and Ricardo and Robinson Theory of Economic Development wealth Schumpeter, Romaine Elizabeth, née Boody Schumpeter Group of Seven Wise Men Schwartz, Anna Jacobson Schwarzenegger, Arnold Scottish Enlightenment Seaver, Gladys Ricarde see Schumpeter, Gladys secular stagnation self-interest services sector China and deindustrialization financial services see financial services global trade in services human capital investment invisibility of liberalization ‘manu-services’ and Marx move away from and national statistics output measurement productivity and innovation and Smith Trade in Services Agreement (TiSA) UK US shadow banking Shiller, Robert silver Singapore Skidelsky, Robert skill-biased technical change skills shortage small and medium-sized enterprises (SMEs) smartphones/mobile phones Smith, Adam and the backlash against globalization as Commissioner of Customs for Scotland economic freedom on ‘invisible hand’ of market forces and laissez-faire economics legacy life and times of and manufacturing and Marx and North and Physiocracy on rate of profit and rebalancing the economy and Ricardo and the services sector and state intervention The Theory of Moral Sentiments The Wealth of Nations social capital social networks social services socialism communist see communism vs welfare state capitalism Solow, Barbara (‘Bobby’), née Lewis Solow, Robert and the backlash against globalization with Council of Economic Advisers doctoral thesis economic growth model ‘How Economic Ideas Turn to Mush’ John Bates Clark Medal and Keynesian economics life and times of Nobel Prize Presidential Medal of Freedom and technological progress Sony Sorrell, Sir Martin South Africa South Korea Soviet Union and China Cold War collapse of see also Russia Spain specialization spontaneous order Sraffa, Piero stagflation Stanley Black & Decker state government regulation intervention in the economy laissez-faire STEM (science, technology, engineering and mathematics) workers sterling Stigler, George Stiglitz, Joseph stocks and Fisher and interest rates US railroad Strachey, Lytton Strahan, William Strong, Benjamin Sturzenegger, Federico Summers, Lawrence supply and demand see also market forces/economy: ‘invisible hand’ Sustainable Development Goals (SDGs) Taiwan Tanzania tariffs taxation and austerity devolved powers of flat for government deficit spending before Great Depression and inequality and investment Japan and Marshall negative income tax to pay off national debt Pigouvian tax progressive and Reagan redistribution through Schumpeter on Smith on Taylor, John Taylor, Overton H.

technology ICT see information and communications technology inequality and technological change institutions and technological progress new technologies and economic growth robotics and Solow’s economic growth model and unemployment and wages telecommunications industry mobile phones/smartphones temporary workers Tennessee term auction facility (TAF) Thackeray, William Makepeace Thailand Thatcher, Margaret total factor productivity (TFP) Townshend, Charles Toyota trade on basis of comparative advantage Britain as largest world trader changing face of creation of ‘winners’ and ‘losers’ deficits see trade deficits and deindustrialization distributional impact expansion exports see exports free trade see free trade German and globalization new trade theory non-tariff barriers patterns changed by advanced manufacturing and productivity Ricardo’s model of international trade in services see services sector and specialization surplus tariffs/barriers trade-to-GDP ratio Transatlantic Trade and Investment Partnership Trans-Pacific Partnership between UK and US voter backlash and wages WTO see World Trade Organization trade deficits current account deficit and Ricardo significance of UK US Trade in Services Agreement (TiSA) trade unions decreased unionization Trans-Pacific Partnership (TPP) Transatlantic Trade and Investment Partnership (TTIP) transport facilities Trier, Germany Trump, Donald Trumpism Turkey Ulyanov, Vladimir Ilich (Lenin) unemployment disguised/hidden and economic growth and the Great Depression and hysteresis long-term unemployment rate and Marxism and Robinson and robotics in South Africa stagflation U-6 rate US youth United Kingdom see Britain/UK United Nations United States and the 2008 financial crisis 1 ‘America First’ policy American Civil War anti-big business sentiment Banking Acts (1933 and 1935) car industry Cold War company mergers Council of Economic Advisers deindustrialization the dollar Fed see Federal Reserve GDP and the gold standard in Great Depression and Hayek housing market industrialization inequality institutions and economic success interest rates labour force growth laissez-faire manufacturing middle class National Bureau of Economic Research (NBER) National Industrial Recovery Act New Deal productivity and wage growth rebalancing the economy reindustrialization reshoring services sector stagnant/low wages trade deficit trade unions Trans-Pacific Partnership Transatlantic Trade and Investment Partnership Treasury Trumpism UK trade with unemployment Vietnam War War of Independence USSR see Soviet Union utility theory Vereinigte Stahlwerke Versailles, Treaty of Vienna Austrian Institute for Business Cycle Research stock market crash University of Vietnam Communist Party institutional challenge Viner, Jacob wages and competitiveness and employment levels and globalization and imperfect competition and inflation median minimum negotiations/bargaining Nixon’s controls problem with low pay and productivity Robinson’s theory of wage determination stagnant 1 and technology/automation and trade Walkman Wall Street Journal Wallis, Allen Walras, Leon Wang Jianlin Wang Sicong Washington Consensus Weber, Max welfare state socialism vs welfare state capitalism Westphalen, Ferdinand von Westphalen, Jenny von (Jenny Marx) Westphalen, Johann Ludwig von Whitbeck, John Wiko Wilson, James Wilson, Woodrow wine Wolff, Wilhelm Woolf, Virginia World Bank and poverty World Trade Organization (WTO) WPP Yellen, Janet Young Hegelians youth unemployment About the Author LINDA YUEH is an economist, broadcaster, and author.


pages: 443 words: 98,113

The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay by Guy Standing

3D printing, Airbnb, Albert Einstein, Amazon Mechanical Turk, Asian financial crisis, asset-backed security, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Bernie Sanders, Big bang: deregulation of the City of London, bilateral investment treaty, Bonfire of the Vanities, Boris Johnson, Bretton Woods, business cycle, Capital in the Twenty-First Century by Thomas Piketty, carried interest, cashless society, central bank independence, centre right, Clayton Christensen, collapse of Lehman Brothers, collective bargaining, credit crunch, crony capitalism, crowdsourcing, debt deflation, declining real wages, deindustrialization, disruptive innovation, Doha Development Round, Donald Trump, Double Irish / Dutch Sandwich, ending welfare as we know it, eurozone crisis, falling living standards, financial deregulation, financial innovation, Firefox, first-past-the-post, future of work, gig economy, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, income inequality, information retrieval, intangible asset, invention of the steam engine, investor state dispute settlement, James Watt: steam engine, job automation, John Maynard Keynes: technological unemployment, labour market flexibility, light touch regulation, Long Term Capital Management, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market clearing, Martin Wolf, means of production, mini-job, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, Neil Kinnock, non-tariff barriers, North Sea oil, Northern Rock, nudge unit, Occupy movement, offshore financial centre, oil shale / tar sands, open economy, openstreetmap, patent troll, payday loans, peer-to-peer lending, plutocrats, Plutocrats, Ponzi scheme, precariat, quantitative easing, remote working, rent control, rent-seeking, ride hailing / ride sharing, Right to Buy, Robert Gordon, Ronald Coase, Ronald Reagan, Sam Altman, savings glut, Second Machine Age, secular stagnation, sharing economy, Silicon Valley, Silicon Valley startup, Simon Kuznets, sovereign wealth fund, Stephen Hawking, Steve Ballmer, structural adjustment programs, TaskRabbit, The Chicago School, The Future of Employment, the payments system, The Rise and Fall of American Growth, Thomas Malthus, Thorstein Veblen, too big to fail, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, Y Combinator, zero-sum game, Zipcar

The construction of the global market system has been marked by a proliferation of over 3,200 bilateral and multilateral treaties on trade and investment, most of which have never been subject to any democratic mandate or accountability.34 This is nothing like an open market system, although many of the deals have been depicted as favouring ‘free trade’. The Uruguay Round of trade negotiations that began in 1986 extended the scope of trade talks beyond tariff cutting to non-tariff barriers such as product health and safety rules, liberalisation of services and protection of intellectual property. These accords came into force in 1995 alongside the creation of the WTO. Although there has been no comprehensive multilateral agreement since then – the Doha Round launched in 2001 having run into the sand – there have been more than ten regional deals a year, on average, over that time.35 But trade deals are far outnumbered by bilateral investment treaties (BITs), part of a murky legalistic system creating a straitjacket favouring commercial interests.

It was in negotiation with the EU on a Transatlantic Trade and Investment Partnership (TTIP) and had just finalised lengthy negotiations on the mammoth Trans-Pacific Partnership (TPP), a far-reaching and controversial accord with Canada and ten Asian and Latin American countries accounting for 40 per cent of world output and a third of world trade. The TPP, though still awaiting ratification, is especially significant as setting a template for future trade deals. It sets a high bar for reductions in tariff and non-tariff barriers to trade in goods, opens up markets for services, including banking and insurance, strengthens intellectual property protection and limits subsidies to state enterprises. While it obliges governments to comply with environmental and labour standards, enforcement provisions are predictably weak. As one investment banking expert noted: ‘It is a mistake to call it a trade agreement. This is really an agreement that’s [sic] purpose is substantially to weaken nation-based regulation while at the same time strengthening intellectual property protections.’36 As is usual in trade agreements involving the USA, American interests prevail and mostly reflect corporate wishes.


The New Harvest: Agricultural Innovation in Africa by Calestous Juma

agricultural Revolution, Albert Einstein, barriers to entry, bioinformatics, business climate, carbon footprint, clean water, colonial rule, conceptual framework, creative destruction, double helix, energy security, energy transition, global value chain, income per capita, industrial cluster, informal economy, Intergovernmental Panel on Climate Change (IPCC), Joseph Schumpeter, knowledge economy, land tenure, M-Pesa, microcredit, mobile money, non-tariff barriers, off grid, out of africa, precision agriculture, Second Machine Age, self-driving car, Silicon Valley, sovereign wealth fund, structural adjustment programs, supply-chain management, total factor productivity, undersea cable

The learning-based approach involves member state studies, consultations, document adoption, progress monitoring, impact evaluation, and milestone adjustment. The institutional framework for the process was adopted, and formal negotiations were launched in June 2011 in South Africa. It includes a summit, council of ministers, sectoral ministerial committees, and a negotiations forum. The first phase of negotiations (lasting up to one year) covers trade in goods (including tariff liberalization, rules of origin, customs cooperation, non-tariff barriers, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, and dispute settlement). The second phase (lasting up to five years) covers traderelated issues (including trade in services, intellectual property rights, competition policy, trade development, and competitiveness). Phase One of the Tripartite FTA Agreement was officially concluded at the Third Summit of Heads of State and Government in December 2014 with the signing of the “Declaration on the Conclusion of Negotiations on Phase One—Trade in Goods.”

The COMESA harmonization agenda—now implemented through its specialized agency, the Alliance for Commodity Trade in Eastern and Central Africa—was initiated to provide mechanisms for wise and responsible use of genetically modified organisms in commercial planting, trade, and emergency food assistance. COMESA, within its mandate of regional economic integration, recognizes the need to support member states in resolving non-tariff barriers that constrain markets and stifle the integration of food products into regional and global value chains, as an innovative strategy to promote market access to regional and international trade. 250 THE NEW HARVEST Such systems are vital to assuring the quality, safety, and efficacy of locally manufactured products and their positive contribution to public health. Moreover, the success of domestic production will partly depend on intra-regional and intra-continental trade to create viable market sizes.


pages: 308 words: 99,298

Brexit, No Exit: Why in the End Britain Won't Leave Europe by Denis MacShane

3D printing, banking crisis, battle of ideas, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, British Empire, centre right, Corn Laws, deindustrialization, Doha Development Round, Donald Trump, Etonian, European colonialism, first-past-the-post, fixed income, Gini coefficient, greed is good, illegal immigration, James Dyson, labour mobility, liberal capitalism, low cost airline, low cost carrier, Martin Wolf, mass immigration, Mont Pelerin Society, negative equity, Neil Kinnock, new economy, non-tariff barriers, offshore financial centre, open borders, open economy, price stability, purchasing power parity, quantitative easing, reshoring, road to serfdom, secular stagnation, Silicon Valley, Thales and the olive presses, trade liberalization, transaction costs, women in the workforce

That is certainly a possibility, though it is doubtful there is a majority in the Commons or Lords for such a unilateral repudiation of the UK’s relationship with the rest of Europe without any substitute agreement being in place. It would mean that not only could the other members of the EU and EEA impose their own conditions on trade with Britain but so could the rest of the world, as Britain would no longer have the benefits and protections of being party to the EU trade rules with other countries. Any country could impose tariffs or the more problematic non-tariff barriers to trade. The UK exports about 49 per cent of all its exports of goods and services to the EU, while the UK market for the rest of the EU is about 3 per cent of its total GDP, according to economist Jonathan Portes of the NIESR. If the UK unilaterally left the EU, as John Redwood and others who think it is just a matter of repealing the 1972 Act argue, Britain would be left naked, without any trade treaty or agreement anywhere in the world.

After the referendum, pro-Leave enthusiasts were saying that the UK could make an offer of tariff-free trade with the rest of the EU. This would certainly help Britain. Forty-nine per cent of UK exports of goods and services go to the EU. But only 16 per cent of EU exports of goods come to the UK. (It is important to remember that it is trade in services that is the real money-maker and where the UK runs a healthy surplus with the EU. But services are most vulnerable to non-tariff barriers and the WTO membership does little to force nations that do not want to buy services to do so.) So making an offer not to impose tariffs on imports from the EU may sound generous but it is mainly to the UK’s advantage. In exchange the anti-Europeans want to limit and discriminate against EU citizens who want to work, start up firms and contribute to the UK economy and its tax base. In addition, outside the Customs Union, all the chemical, plastic, metal, pharmaceutical and other products will have to go through rigorous customs checks and form filling before going on sale in the EU.


pages: 356 words: 103,944

The Globalization Paradox: Democracy and the Future of the World Economy by Dani Rodrik

affirmative action, Asian financial crisis, bank run, banking crisis, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, central bank independence, collective bargaining, colonial rule, Corn Laws, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, Doha Development Round, en.wikipedia.org, endogenous growth, eurozone crisis, financial deregulation, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, George Akerlof, guest worker program, Hernando de Soto, immigration reform, income inequality, income per capita, industrial cluster, information asymmetry, joint-stock company, Kenneth Rogoff, land reform, liberal capitalism, light touch regulation, Long Term Capital Management, low skilled workers, margin call, market bubble, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, microcredit, Monroe Doctrine, moral hazard, night-watchman state, non-tariff barriers, offshore financial centre, oil shock, open borders, open economy, Paul Samuelson, price stability, profit maximization, race to the bottom, regulatory arbitrage, savings glut, Silicon Valley, special drawing rights, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tobin tax, too big to fail, trade liberalization, trade route, transaction costs, tulip mania, Washington Consensus, World Values Survey

Thus national policies promoted globalization mostly as a byproduct of widely shared economic growth along with some modest opening up. The success of the Bretton Woods era suggests that healthy national economies make for a bustling world economy, even in the presence of trade controls.6 Consider the long list of areas liberalization barely touched. Agriculture was kept out of GATT negotiations and remained riddled with tariff and non-tariff barriers—most infamously in the form of variable import quotas aimed at stabilizing domestic prices at levels much higher than in exporting countries. Most services (insurance, banking, construction, utilities, and the like) escaped liberalization as well. Manufacturing sectors that were liberalized but began to face significant competitive threat from lower-cost/higher-productivity exporters soon received protection rather than meet their fate.

Measured by these guidelines, China’s policies suggest a country that messed up big time, not one that became a formidable competitive threat in world markets. In brief, China opened up very gradually, and significant reforms lagged behind growth (in exports and overall incomes) by at least a decade or more. While state trading monopolies were dismantled relatively early (starting in the late 1970s), what took their place was a complex and highly restrictive set of tariffs, non-tariff barriers, and licenses restricting imports. These were not substantially relaxed until the early 1990s. The Chinese leadership resisted the conventional advice in opening their economy because removing barriers to trade would have forced many state enterprises to close without doing much to stimulate new investments in industrial activities. Employment and economic growth would have suffered, threatening social stability.


pages: 437 words: 113,173

Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global pandemic, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial cluster, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Johannes Kepler, Khan Academy, Kickstarter, low cost airline, low cost carrier, low skilled workers, Lyft, Malacca Straits, mass immigration, megacity, Mikhail Gorbachev, moral hazard, Nelson Mandela, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, Pearl River Delta, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Robert Metcalfe, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, The Future of Employment, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uber lyft, undersea cable, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day

The momentum of global trade negotiations has stalled in recent years—financial, social and environmental crises have dampened the growth-first rhetoric that once fueled them—but already 20 years of WTO negotiations and dispute settlement have broken down global trade walls. In advanced economies, average tariffs on imports are already near zero, and current regional trade initiatives, like the Trans-Pacific Partnership (TPP) between the US and 11 other states around the Pacific Rim, and the Transatlantic Trade and Investment Partnership (TTIP) between the US and the European Union (EU), aim to tear down many non-tariff barriers.*** Regional clubs—the EU (rededicated in 1993), the North American Free Trade Agreement (NAFTA, since 1994), the Free Trade Area of the Association of Southeast Asian Nations (ASEAN, 1992), the Southern Common Market (MERCOSUR, 1991) and the Southern African Development Community (SADC, 1992)—have deepened political and economic harmonization among close neighbors. Only one country—North Korea—still rejects the notion of a global market.

The next two chapters show how it’s changing all of us. Notes * Here again, Europe lagged behind other civilizations. As early as 1402, maps in the court of Korea’s Choso˘n Dynasty demonstrated knowledge of Africa’s southern tip, likely of Arabic origin via trade with China. ** Specifically, the Caribbean. John Cabot, sent by the British, found North America in 1497. *** Common non-tariff barriers include differences in how regulators of different countries treat similar products. For example, most US beef cannot be sold into the EU because many of the growth-promoting hormones used by ranchers in the former are banned in the latter. **** The prize for the first use of movable type for printing properly belongs to Bi Sheng (990–1051), who developed such a system in China around 1040 AD.


pages: 228 words: 68,880

Revolting!: How the Establishment Are Undermining Democracy and What They're Afraid Of by Mick Hume

anti-communist, battle of ideas, Berlin Wall, Boris Johnson, central bank independence, colonial rule, David Brooks, Donald Trump, eurozone crisis, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Martin Wolf, mass immigration, non-tariff barriers, Occupy movement, open borders, plutocrats, Plutocrats, Slavoj Žižek, the scientific method, We are the 99%, World Values Survey

The difference is only one of degree, not of kind … none of the following is new: the declining relevance of distance; the “ideas” economy; the “weightless” economy; liberation by “microchip”; “Jihad vs. McWorld” … and the twilight of sovereignty.’14 And far from globalised finance being able to override national barriers at will today, cross-border economic activities are now arguably constrained by state actions far more than a century ago, through regulations, protectionism policies, non-tariff barriers and other controls, including on the ‘free movement’ of people. None of this would have been news to one of the old masters of economic analysis, John Maynard Keynes. Writing in 1919, shortly after the end of the First World War, Keynes was already feeling nostalgic about the open world economy that had been lost when war broke out: ‘What an extraordinary episode in the economic progress of man that age was which came to an end in August, 1914!’


pages: 309 words: 85,584

Nine Crises: Fifty Years of Covering the British Economy From Devaluation to Brexit by William Keegan

banking crisis, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, British Empire, capital controls, congestion charging, deindustrialization, Donald Trump, Etonian, eurozone crisis, Fall of the Berlin Wall, financial innovation, financial thriller, floating exchange rates, full employment, gig economy, inflation targeting, Just-in-time delivery, light touch regulation, liquidity trap, Martin Wolf, moral hazard, negative equity, Neil Kinnock, non-tariff barriers, North Sea oil, Northern Rock, oil shock, Parkinson's law, Paul Samuelson, pre–internet, price mechanism, quantitative easing, Ronald Reagan, school vouchers, short selling, South Sea Bubble, The Chicago School, transaction costs, tulip mania, Winter of Discontent, Yom Kippur War

As I write, it is becoming increasingly obvious that if the UK were to experience a hard Brexit there would be widespread chaos which would affect all of our lives, including people in mainland Europe. There has been much confusion, indeed ignorance, in discussion within the UK about the customs union and the single market. Membership of the customs union removed physical barriers to trade within the EU, and the single market – let me emphasise again that this was Mrs Thatcher’s proud achievement – removed many non-tariff barriers. There seems to have been negligible progress since Mrs May committed the country to leaving the EU, with or without a deal, at the end of March 2019. It is obvious that the country is bitterly divided on this issue. I was particularly struck in September 2017 when I attended a conference held by the Ambrosetti Foundation in Italy and listened to a speech by Michel Barnier, the EU’s chief negotiator.


pages: 332 words: 89,668

Two Nations, Indivisible: A History of Inequality in America: A History of Inequality in America by Jamie Bronstein

Affordable Care Act / Obamacare, back-to-the-land, barriers to entry, basic income, Bernie Sanders, big-box store, blue-collar work, Branko Milanovic, British Empire, Capital in the Twenty-First Century by Thomas Piketty, clean water, cognitive dissonance, collateralized debt obligation, collective bargaining, Community Supported Agriculture, corporate personhood, crony capitalism, deindustrialization, desegregation, Donald Trump, ending welfare as we know it, Frederick Winslow Taylor, full employment, Gini coefficient, income inequality, interchangeable parts, invisible hand, job automation, John Maynard Keynes: technological unemployment, labor-force participation, land reform, land tenure, longitudinal study, low skilled workers, low-wage service sector, mandatory minimum, mass incarceration, minimum wage unemployment, moral hazard, moral panic, mortgage debt, New Urbanism, non-tariff barriers, obamacare, occupational segregation, Occupy movement, oil shock, plutocrats, Plutocrats, price discrimination, race to the bottom, rent control, road to serfdom, Ronald Reagan, Sam Peltzman, Scientific racism, Simon Kuznets, single-payer health, strikebreaker, too big to fail, trade route, transcontinental railway, Triangle Shirtwaist Factory, trickle-down economics, universal basic income, Upton Sinclair, upwardly mobile, urban renewal, wage slave, War on Poverty, women in the workforce, working poor, Works Progress Administration

Factories in Asia could quickly adapt to slight product changes.65 Companies that could do so in the 1990s cut their costs by offshoring portable jobs, maximizing profit through lower input costs (it is estimated that labor costs are “58 to 72 percent lower in China and 22 to 62 percent lower in Mexico”), but at the same time contributing to American unemployment.66 Computers and telecommunication advances enabled companies to use smaller workforces to accomplish their goals, also helping to increase unemployment.67 Free trade became another vector of inequality during the Clinton administration, in the form of the North American Free Trade Agreement (NAFTA). NAFTA was designed to foster economic growth throughout the United States, Canada, and Mexico by lowering tariff barriers. After NAFTA, the value added to American manufacturing by Mexican assembly plants, or “maquiladoras,” tripled.68 “By 1999, tariff and non-tariff barriers had been removed on 65 percent of goods … and the value of trade between the USA, Mexico, and Canada trebled between 1993 and 2007. Inward foreign direct investment increased fivefold over the same period.”69 This prosperity was not equally shared, however. NAFTA disadvantaged low-waged workers in the United States who were doing the sorts of assembly work that could be outsourced south of the border, and even Mexican workers employed by the new maquiladoras found that their wages fell.


pages: 370 words: 102,823

Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth by Michael Jacobs, Mariana Mazzucato

balance sheet recession, banking crisis, basic income, Bernie Sanders, Bretton Woods, business climate, business cycle, Carmen Reinhart, central bank independence, collaborative economy, complexity theory, conceptual framework, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, decarbonisation, deindustrialization, dematerialisation, Detroit bankruptcy, double entry bookkeeping, Elon Musk, endogenous growth, energy security, eurozone crisis, factory automation, facts on the ground, fiat currency, Financial Instability Hypothesis, financial intermediation, forward guidance, full employment, G4S, Gini coefficient, Growth in a Time of Debt, Hyman Minsky, income inequality, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), Internet of things, investor state dispute settlement, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, knowledge economy, labour market flexibility, low skilled workers, Martin Wolf, mass incarceration, Mont Pelerin Society, neoliberal agenda, Network effects, new economy, non-tariff barriers, paradox of thrift, Paul Samuelson, price stability, private sector deleveraging, quantitative easing, QWERTY keyboard, railway mania, rent-seeking, road to serfdom, savings glut, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Steve Jobs, the built environment, The Great Moderation, The Spirit Level, Thorstein Veblen, too big to fail, total factor productivity, transaction costs, trickle-down economics, universal basic income, very high income

The expansion of corporate political power is well exhibited in proposals for a general trade treaty between the EU and the US, the Transatlantic Trade and Investment Partnership (TTIP). TTIP is a plan for a major relaxation of barriers to trade between member states of the EU and the US. Most tariff barriers have already been negotiated away in various global agreements. What remain are the so-called non-tariff barriers. These extend from rules designed to keep international competitors out of domestic markets, to regulations to protect health, labour rights and various concepts of public and collective goods. What marks TTIP out from previous trade agreements is the attempt to end the exemption of public services from trade provisions. Under current EU competition law governments can declare certain areas of social policy to be outside the market economy, defining them as services of general economic interest.


pages: 371 words: 98,534

Red Flags: Why Xi's China Is in Jeopardy by George Magnus

3D printing, 9 dash line, Admiral Zheng, Asian financial crisis, autonomous vehicles, balance sheet recession, banking crisis, Bretton Woods, BRICs, British Empire, business process, capital controls, carbon footprint, Carmen Reinhart, cloud computing, colonial exploitation, corporate governance, crony capitalism, currency manipulation / currency intervention, currency peg, demographic dividend, demographic transition, Deng Xiaoping, Doha Development Round, Donald Trump, financial deregulation, financial innovation, financial repression, fixed income, floating exchange rates, full employment, Gini coefficient, global reserve currency, high net worth, hiring and firing, Hyman Minsky, income inequality, industrial robot, Internet of things, invention of movable type, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, labour market flexibility, labour mobility, land reform, Malacca Straits, means of production, megacity, money market fund, moral hazard, non-tariff barriers, Northern Rock, offshore financial centre, old age dependency ratio, open economy, peer-to-peer lending, pension reform, price mechanism, purchasing power parity, regulatory arbitrage, rent-seeking, reserve currency, rising living standards, risk tolerance, smart cities, South China Sea, sovereign wealth fund, special drawing rights, special economic zone, speech recognition, The Wealth of Nations by Adam Smith, total factor productivity, trade route, urban planning, Washington Consensus, women in the workforce, working-age population, zero-sum game

The climate for multilateral trade liberalisation is now quite different and less benign. Protectionist trade measures are on the rise. Global Trade Alert, a monitoring organisation, reported that since it started work in 2008, over 6,000 protectionist measures have been introduced by G20 countries.5 The main tool used to restrain trade was not tariffs as such, but rather a variety of so-called non-tariff barriers, such as state aid, financial favouritism of local firms, tax incentives for exporters, bail-outs, and trade defence measures such as anti-dumping duties, which are levied on imports that recipient countries think are priced below fair market value or what exporting countries charge in their home market. The number of free trade agreements (FTAs) has been sliding. According to the Design of Trade Agreements Database, while there were around thirty FTAs per year in the 1990s, there were twenty-six per year in the run-up to the financial crisis in 2008, and just ten annually since 2010.6 US withdrawal from the TPP, and the stalled Transatlantic Trade and Investment Partnership (TTIP) between the US and the EU, extinguished hopes that there might be a revival of big FTAs, though the non-US signatories to the TPP, including Japan and Canada, have agreed to a slightly narrower-in-scope Comprehensive and Progressive Agreement for Trans-Pacific Partnership.


pages: 382 words: 100,127

The Road to Somewhere: The Populist Revolt and the Future of Politics by David Goodhart

Affordable Care Act / Obamacare, agricultural Revolution, assortative mating, Big bang: deregulation of the City of London, borderless world, Boris Johnson, Branko Milanovic, Bretton Woods, British Empire, call centre, capital controls, carbon footprint, central bank independence, centre right, coherent worldview, corporate governance, credit crunch, deglobalization, deindustrialization, Donald Trump, Downton Abbey, Edward Glaeser, en.wikipedia.org, Etonian, European colonialism, eurozone crisis, falling living standards, first-past-the-post, gender pay gap, gig economy, glass ceiling, global supply chain, global village, illegal immigration, income inequality, informal economy, job satisfaction, knowledge economy, labour market flexibility, low skilled workers, market friction, mass immigration, mittelstand, Neil Kinnock, New Urbanism, non-tariff barriers, North Sea oil, obamacare, old-boy network, open borders, Peter Singer: altruism, post-industrial society, post-materialism, postnationalism / post nation state, race to the bottom, Richard Florida, Ronald Reagan, selection bias, shareholder value, Skype, Sloane Ranger, stem cell, Thomas L Friedman, transaction costs, trickle-down economics, ultimatum game, upwardly mobile, wages for housework, white flight, women in the workforce, working poor, working-age population, World Values Survey

Moving from a tariff-free customs union to what is sometimes called the ‘common economic space’ of a single market is a bigger step than it sounds. The idea was to make a reality of the so-called four freedoms of goods, services, capital and people by harmonising and coordinating a huge range of factors, from state subsidies to product specifications. It was also supposed to open up the services sector, particularly important to Britain, which is often subject to a thicket of non-tariff barriers. (Thirty years later about 60 per cent of the EU’s services market remains closed to cross-border trade.) These changes involved significant intrusions into national life, and many measures were even subject to majority voting, meaning countries could no longer apply national vetos if they felt their fundamental interests were threatened. But in general the trade-off made good sense. There were clear and visible benefits from sharing or relinquishing sovereignty.


Corbyn by Richard Seymour

anti-communist, banking crisis, battle of ideas, Bernie Sanders, Boris Johnson, British Empire, call centre, capital controls, centre right, collective bargaining, credit crunch, Donald Trump, eurozone crisis, first-past-the-post, full employment, gender pay gap, housing crisis, income inequality, knowledge economy, land value tax, liberal world order, mass immigration, means of production, moral panic, Naomi Klein, negative equity, Neil Kinnock, new economy, non-tariff barriers, Northern Rock, Occupy movement, offshore financial centre, pension reform, Philip Mirowski, precariat, quantitative easing, race to the bottom, rent control, Snapchat, stakhanovite, Washington Consensus, wealth creators, Winter of Discontent, Wolfgang Streeck, working-age population, éminence grise

There will be a significant lag in negotiating a new set of trading arrangements with the EU: the two-year Article 50 negotiations are to finalise the terms of divorce, with the real negotiations on a new set of relationships coming afterwards. And even if Britain achieves tariff-free trade with the rest of Europe, which EU negotiators insist will only be possible if the UK remains in the single market, there are likely to be some costs in terms of non-tariff barriers. Most forecasts expect some costs even if Britain were to remain within the European Economic Area and be subjected to single-market rules, with the Treasury estimating that the UK would lose about 3.8 per cent of GDP.40 At the same time, the forecasts of doom, where they are not outright false (Owen Smith wrongly claimed that a ‘no-deal’ Brexit would cost Britain £45bn in terms of GDP), are necessarily tendentious because they depend on all other things being equal.


pages: 374 words: 113,126

The Great Economists: How Their Ideas Can Help Us Today by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

Free trade agreements (FTAs) such as the EU’s single market, aim to eliminate most of them. But, a number of governments use tariffs to protect their industries from competition from bigger global rivals until they are more mature. Labour groups also want protection for domestic jobs. So, tariffs are more than just an economic decision to impose a tax. There are often political motives behind their imposition. There are also non-tariff barriers (NTBs) to add to the mix. These are the other ways to be protectionist without imposing tariffs, such as through insisting on standards for certain industries that can restrict imports. For instance, Thai prawn exporters found it hard to meet American standards for the type of net that allowed them to sell to the US. Regulations matter even more for the services sector, which is the biggest part of the British, American and most other major economies.


pages: 550 words: 124,073

Democracy and Prosperity: Reinventing Capitalism Through a Turbulent Century by Torben Iversen, David Soskice

Andrei Shleifer, assortative mating, augmented reality, barriers to entry, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, centre right, cleantech, cloud computing, collateralized debt obligation, collective bargaining, colonial rule, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, deskilling, Donald Trump, first-past-the-post, full employment, Gini coefficient, hiring and firing, implied volatility, income inequality, industrial cluster, inflation targeting, invisible hand, knowledge economy, labor-force participation, liberal capitalism, low skilled workers, low-wage service sector, means of production, mittelstand, Network effects, New Economic Geography, new economy, New Urbanism, non-tariff barriers, Occupy movement, offshore financial centre, open borders, open economy, passive investing, precariat, race to the bottom, rent-seeking, RFID, road to serfdom, Robert Bork, Robert Gordon, Silicon Valley, smart cities, speech recognition, The Future of Employment, The Great Moderation, The Rise and Fall of American Growth, too big to fail, trade liberalization, union organizing, urban decay, Washington Consensus, winner-take-all economy, working-age population, World Values Survey, young professional, zero-sum game

In addition to these domestic political-institutional conditions, the international trade and monetary regime gave governments an important measure of fiscal and monetary policy autonomy by cushioning currencies against speculative attacks and by permitting governments to restrict and direct the international flow of capital. Likewise, GATT only brought down trade barriers slowly and allowed many exemptions to help European countries build their own industries (Ruggie 1983). Non-tariff barriers were particularly dense in services where European governments argued that special considerations—such as financial stability, an encompassing system of public transportation, and country-wide postal service—justified heavy state regulation and exclusion of foreign competition. Public utilities were widely considered natural monopolies that required state ownership or tight regulatory control, and in areas such as telecommunication and postal services there was also arguably a national-security interest in keeping foreign firms at bay.


Adam Smith: Father of Economics by Jesse Norman

"Robert Solow", active measures, Andrei Shleifer, balance sheet recession, bank run, banking crisis, Basel III, Berlin Wall, Black Swan, Branko Milanovic, Bretton Woods, British Empire, Broken windows theory, business cycle, business process, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, centre right, cognitive dissonance, collateralized debt obligation, colonial exploitation, Corn Laws, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, David Brooks, David Ricardo: comparative advantage, deindustrialization, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Fellow of the Royal Society, financial intermediation, frictionless, frictionless market, future of work, George Akerlof, Hyman Minsky, income inequality, incomplete markets, information asymmetry, intangible asset, invention of the telescope, invisible hand, Isaac Newton, Jean Tirole, John Nash: game theory, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, lateral thinking, loss aversion, market bubble, market fundamentalism, Martin Wolf, means of production, money market fund, Mont Pelerin Society, moral hazard, moral panic, Naomi Klein, negative equity, Network effects, new economy, non-tariff barriers, Northern Rock, Pareto efficiency, Paul Samuelson, Peter Thiel, Philip Mirowski, price mechanism, principal–agent problem, profit maximization, purchasing power parity, random walk, rent-seeking, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, scientific worldview, seigniorage, Socratic dialogue, South Sea Bubble, special economic zone, speech recognition, Steven Pinker, The Chicago School, The Myth of the Rational Market, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Thomas Malthus, Thorstein Veblen, time value of money, transaction costs, transfer pricing, Veblen good, Vilfredo Pareto, Washington Consensus, working poor, zero-sum game

Yet a Smithian viewpoint carries with it at least three wider implications for understanding our modern world as well. First, Smith’s economic egalitarianism anticipates recent academic work which suggests that great inequality, far from creating incentives that boost economic growth, can actively undermine it. Secondly, Smith underlines the degree to which different forms of modern mercantilism—the strategic use of trade surpluses and tariff and non-tariff barriers, the hollowing out of labour markets in developing countries as their most mobile talent is drawn into advanced economies, the competitive withdrawal by nations from shared environmental costs—can be read not merely in terms of a retreat from the responsibilities of a globalizing world but as the plain old-fashioned pursuit of political power by a form of economic nationalism, a modern ‘jealousy of trade’, in Hume’s memorable phrase.


pages: 515 words: 132,295

Makers and Takers: The Rise of Finance and the Fall of American Business by Rana Foroohar

accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, additive manufacturing, Airbnb, algorithmic trading, Alvin Roth, Asian financial crisis, asset allocation, bank run, Basel III, bonus culture, Bretton Woods, British Empire, business cycle, buy and hold, call centre, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, centralized clearinghouse, clean water, collateralized debt obligation, commoditize, computerized trading, corporate governance, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, crowdsourcing, David Graeber, deskilling, Detroit bankruptcy, diversification, Double Irish / Dutch Sandwich, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial deregulation, financial intermediation, Frederick Winslow Taylor, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, High speed trading, Home mortgage interest deduction, housing crisis, Howard Rheingold, Hyman Minsky, income inequality, index fund, information asymmetry, interest rate derivative, interest rate swap, Internet of things, invisible hand, John Markoff, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, Kickstarter, knowledge economy, labor-force participation, London Whale, Long Term Capital Management, manufacturing employment, market design, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, offshore financial centre, oil shock, passive investing, Paul Samuelson, pensions crisis, Ponzi scheme, principal–agent problem, quantitative easing, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, Rana Plaza, RAND corporation, random walk, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Satyajit Das, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, Snapchat, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, Steve Jobs, technology bubble, The Chicago School, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Vanguard fund, zero-sum game

The idea behind that Reagan administration effort, known as Project Socrates, was to figure out why America’s foreign competitors were succeeding in establishing highly efficient, thriving corporations while their US counterparts were withering. The team found that foreign firms based in Japan, France, Germany, and other developed countries enjoyed a wide spectrum of advantages that allowed them to trounce US companies: government assistance, generous subsidies, R&D initiatives, industrial intelligence gathering, and unofficial non-tariff barriers. The project’s mission was to then map out a strategy of industrial and technological development that would allow the United States to close the gap.40 The effort was shut down under the Bush administration, but it’s a battle that is in many ways still being fought. It is also one that, ironically, brings together political forces from both sides of the aisle. Not only liberals like Elizabeth Warren, for example, but even some conservatives worry about the transatlantic and transpacific trade deals currently in the works (the so-called TTIP and TPP).


Year 501 by Noam Chomsky

"Robert Solow", anti-communist, Bartolomé de las Casas, Berlin Wall, Bolshevik threat, Bretton Woods, British Empire, business cycle, capital controls, colonial rule, corporate governance, cuban missile crisis, declining real wages, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, European colonialism, experimental subject, Fall of the Berlin Wall, Howard Zinn, invisible hand, land reform, land tenure, long peace, mass incarceration, means of production, Monroe Doctrine, non-tariff barriers, offshore financial centre, plutocrats, Plutocrats, price stability, Ralph Nader, Ralph Waldo Emerson, RAND corporation, Ronald Reagan, Simon Kuznets, strikebreaker, structural adjustment programs, the scientific method, The Wealth of Nations by Adam Smith, trade liberalization, trickle-down economics, union organizing, War on Poverty, working poor

Morgan takes note of “the hypocrisy of the rich nations in demanding open markets in the Third World while closing their own.” He might have added the World Bank report that the protectionist measures of the industrial countries reduce national income in the South by about twice the amount provided by official, largely export-promotion, most of it to the richer sectors of the “developing countries” (less needy, but better consumers). Or the UNCTAD estimate that non-tariff barriers (NTBs) of the industrial countries reduce Third World exports by almost 20 percent in affected categories, which include textiles, steel, seafood, animal feed and other agricultural products, with billions of dollars a year in losses. Or the World Bank estimate that 31 percent of the South’s manufacturing exports are subject to NTBs as compared with the North’s 18 percent. Or the 1992 report of the UN Human Development Program, reviewing the increasing gap between the rich and the poor (by now, 83 percent of the world’s wealth in the hands of the richest billion, with 1.4 percent for the billion at the bottom of the heap); the doubling of the gap since 1960 is attributed to policies of the IMF and World Bank, and the fact that 20 of 24 industrial countries are more protectionist today than they were a decade ago, including the US, which celebrated the Reagan revolution by doubling the proportion of imports subject to restrictive measures.


pages: 488 words: 144,145

Inflated: How Money and Debt Built the American Dream by R. Christopher Whalen

Albert Einstein, bank run, banking crisis, Black Swan, Bretton Woods, British Empire, business cycle, buy and hold, California gold rush, Carmen Reinhart, central bank independence, commoditize, conceptual framework, corporate governance, corporate raider, creative destruction, cuban missile crisis, currency peg, debt deflation, falling living standards, fiat currency, financial deregulation, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, full employment, global reserve currency, housing crisis, interchangeable parts, invention of radio, Kenneth Rogoff, laissez-faire capitalism, liquidity trap, means of production, money: store of value / unit of account / medium of exchange, moral hazard, mutually assured destruction, non-tariff barriers, oil shock, Paul Samuelson, payday loans, plutocrats, Plutocrats, price stability, pushing on a string, quantitative easing, rent-seeking, reserve currency, Ronald Reagan, special drawing rights, The Chicago School, The Great Moderation, too big to fail, trade liberalization, transcontinental railway, Upton Sinclair, women in the workforce

In simple terms, the United States dropped most of its protectionist import barriers while allowing Germany, Korea and Japan to protect their markets. These nations used very similar trade barriers to those the United States had employed prior to 1945. The United States embraced free trade, at least to a degree, but encouraged its former enemies to rebuild their economies behind a protective wall of tariff and non-tariff barriers and quotas. The Bretton Woods Agreement of 1944 and the multilateral trade framework created under the auspices of the United States essentially allowed the participating nations to peg their currencies to the dollar and direct their attention and resources to domestic economic recovery. By basing the post-war world on the dollar and gold, the Allies sought to avoid competitive currency devaluations between nations and thereby sidestep the sharp swings in growth and reserve balances that had characterized the pre-WWII period.


pages: 470 words: 148,730

Good Economics for Hard Times: Better Answers to Our Biggest Problems by Abhijit V. Banerjee, Esther Duflo

"Robert Solow", 3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, basic income, Bernie Sanders, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, charter city, correlation does not imply causation, creative destruction, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, decarbonisation, Deng Xiaoping, Donald Trump, Edward Glaeser, en.wikipedia.org, endowment effect, energy transition, Erik Brynjolfsson, experimental economics, experimental subject, facts on the ground, fear of failure, financial innovation, George Akerlof, high net worth, immigration reform, income inequality, Indoor air pollution, industrial cluster, industrial robot, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, Jean Tirole, Jeff Bezos, job automation, Joseph Schumpeter, labor-force participation, land reform, loss aversion, low skilled workers, manufacturing employment, Mark Zuckerberg, mass immigration, Network effects, new economy, New Urbanism, non-tariff barriers, obamacare, offshore financial centre, open economy, Paul Samuelson, place-making, price stability, profit maximization, purchasing power parity, race to the bottom, RAND corporation, randomized controlled trial, Richard Thaler, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, school choice, Second Machine Age, secular stagnation, self-driving car, shareholder value, short selling, Silicon Valley, smart meter, social graph, spinning jenny, Steve Jobs, technology bubble, The Chicago School, The Future of Employment, The Market for Lemons, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, total factor productivity, trade liberalization, transaction costs, trickle-down economics, universal basic income, urban sprawl, very high income, War on Poverty, women in the workforce, working-age population, Y2K

Philippe Aghion and Stephen Durlauf (Amsterdam: North Holland, 2005), vol. 1, part A: 473–552. 28 Topalova, “Factor Immobility and Regional Impacts of Trade Liberalization.” 29 Pinelopi K. Goldberg, Amit K. Khandelwal, Nina Pavcnik, and Petia Topalova, “Multiproduct Firms and Product Turnover in the Developing World: Evidence from India,” Review of Economics and Statistics 92, no. 4 (2010): 1042–49. 30 Robert Grundke and Cristoph Moser, “Hidden Protectionism? Evidence from Non-Tariff Barriers to Trade in the United States,” Journal of International Economics 117 (2019): 143–57. 31 World Trade Organization, “Members Reaffirm Commitment to Aid for Trade and to Development Support,” 2017, accessed March 18, 2019, https://www.wto.org/english/news_e/news17_e/gr17_13jul17_e.htm. 32 David Atkin, Amit K. Khandelwal, and Adam Osman, “Exporting and Firm Performance: Evidence from a Randomized Experiment,” Quarterly Journal of Economics 132, no. 2 (2017): 551–615. 33 “Rankings by Country of Average Monthly Net Salary (After Tax) (Salaries and Financing),” Numbeo, accessed March 18, 2019, https://www.numbeo.com/cost-of-living/country_price_rankings?


The Rise and Fall of the British Nation: A Twentieth-Century History by David Edgerton

active measures, Berlin Wall, Big bang: deregulation of the City of London, blue-collar work, British Empire, business cycle, call centre, centre right, collective bargaining, colonial exploitation, Corn Laws, corporate governance, deglobalization, deindustrialization, dematerialisation, deskilling, Donald Davies, double helix, endogenous growth, Etonian, European colonialism, feminist movement, first-past-the-post, full employment, imperial preference, James Dyson, knowledge economy, labour mobility, land reform, land value tax, manufacturing employment, means of production, Mikhail Gorbachev, Neil Kinnock, new economy, non-tariff barriers, North Sea oil, offshore financial centre, old-boy network, packet switching, Philip Mirowski, Piper Alpha, plutocrats, Plutocrats, post-industrial society, rising living standards, road to serfdom, Ronald Reagan, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, trade liberalization, union organizing, very high income, wages for housework, wealth creators, Winter of Discontent, women in the workforce, working poor

But the European Union, as the new body was called following the Treaty on European Union (the Maastricht Treaty of 1992), was very much larger than the EEC the United Kingdom joined. Greece (1981), Spain, Portugal (1986), Sweden, Finland and Austria (1992) had joined, as well as the former GDR (1990). The 1986 Single European Act, strongly supported by the Conservative government, aimed to remove all sorts of non-tariff barriers within the expanding Community, changes which came into full effect in 1992. These were transformative developments leading to a radical liberalization of European trade, in the context of more liberalized global trade. From 1992, trade within the European Union was as free as it was previously within national economies. Technical norms, specifications and all the hidden apparatus of trade and regulation were the province of the EU, an instance of a politically rather invisible change with major administrative and economic consequences.


pages: 721 words: 238,678

Fall Out: A Year of Political Mayhem by Tim Shipman

banking crisis, Beeching cuts, Bernie Sanders, Boris Johnson, centre right, Clapham omnibus, Corn Laws, corporate governance, Dominic Cummings, Donald Trump, drone strike, Etonian, eurozone crisis, Gordon Gekko, greed is good, iterative process, John Bercow, Kickstarter, kremlinology, land value tax, mutually assured destruction, Neil Kinnock, new economy, non-tariff barriers, offshore financial centre, open borders, quantitative easing, Ronald Reagan, Snapchat, working poor

A Downing Street official said, ‘There was a lot of bravado from ministers about what they were going to achieve, which very quickly proved to be unrealistic and legally impossible.’ Some civil servants believed that Fox’s focus on trade tariffs – and his belief that a trade deal with the EU would be the ‘easiest in the world’ – was missing the point, since the real problems were encountered trying to secure a deal on services, where the refusal to recognise professional qualifications and other non-tariff barriers were more significant. ‘It’s not all about tariffs,’ a senior mandarin said. ‘Liam believes you just unilaterally disarm and then take all your tariffs down.’ Ivan Rogers also warned Downing Street that the belief of Brexiteers that they could just walk away from the EU with no deal and keep trading on the same terms if neither side erected tariffs was incorrect. Unless the UK signed a trade deal it would automatically revert to the status of a third country after Brexit.