WORKING PAPER 11
China’s economic rise has transformed the international trade system. Furthermore, given its divergent economic model China is challenging the global economic order in ways that previous Asian competitors never did. In response to systemic rivalry and an increasingly tense international environment, the EU seeks to build more “strategic autonomy” from the United States, its main security benefactor. Economically, the EU policy of Open Strategic Autonomy seeks to maintain openness to trade, while developing tools for dealing with coercive and unfair trade practices. This paper identifies the key elements of this policy, as well as the risks it holds for European economic liberalism.
Green hydrogen offers a window to redefine the Africa-Australia and Africa-Australia-Europe partnerships
Conflict in Europe has fast-forwarded a global race for green hydrogen. Australia was already well-placed, having already begun pursuit of large-scale green hydrogen development projects domestically and overseas. With a focus on Africa this op-ed explores Australia’s international hydrogen-related green energy superpower potential.
Chigozie Nweke-Eze, University of Bonn. Dr. Lauren A. Johnston, Visiting Senior Lecturer University of Adelaide.
Jim Redden, Trade and Development Expert, Institute for International Trade, University of Adelaide.
Australia’s regional economic diplomacy has lost its way in recent times in the Indo-Pacific region. The new Albanese-led Labor government recognizes that there needs to be a reset in its trade and aid paradigm in the Indo-Pacific, in order to restore strong relations with our Pacific neighbours, as well as thaw the diplomatic freeze with China on trade. This op-ed identifies four components that could serve as the foundation for this new paradigm.
Australia’s response to Chinese economic coercion: towards a comprehensive strategic approach to export diversification
Mike Adams, former Department of Foreign Affairs and Trade (DFAT) economist. Ron Wickes, past Director of the Trade Analysis Section of DFAT, Nicolas Brown headed DFAT’s branch for analysis and strategic advice on trade and economic issues.
On a range of measures, Australia’s exports have become more concentrated on China since 2000. Yet geopolitical tensions, intensified by China blocking key Australian exports over the past two years, has fuelled a debate over export diversification to reduce vulnerability to economic coercion. This policy brief argues that much of the debate misses key facts about Australia’s economic options, and argues for economic reform and regional cooperation to support diversification.
WORKING PAPER 09
Despite several attempts and significant progress, broad agreement on the most appropriate way to manage conflicts between international trade and environmental issues has yet to emerge. Consequently, this paper begins with a search for a set of principles to guide the use of border adjustment mechanisms to ameliorate global environmental problems or, as economists call them, global externalities.
Ten principles are developed, and then applied to the European Union's current CBAM design, and recommendations for improving that design are put forward. As this CBAM is rooted in the EU's Emissions Trading System, broad recommendations for aligning the ETS with the principles are also offered.
Wednesday, 4th May 2022 .The Institute for International Trade (IIT) and the G20-related Trade and Investment Network (TIRN) hosted an interactive webinar on The Russia-Ukraine War, Sanctions, and the G20’s Relations with Russia. The West answered the invasion of the Ukraine by Russian troops with swift and unprecedented sanctions, which addressed both the political nomenklatura and the economy.
India-Australia Free Trade Deal Offers Australia First Mover Advantage in the World’s Fastest Growing Economy
Natasha Jha Bhaskar, General Manager of Newland Global Group, a Sydney-based Australian corporate advisory firm specialising in the Australia-India space. AI ECTA is India’s first deal with a developed economy in a decade and only a second trade deal in a span of eleven years. It is indicative of how Australia’s bilateral relationship with India has grown in leaps and bounds recently, particularly since the elevation of ties to a Comprehensive Strategic Partnership (CSP) in 2020.
Hildegunn Kyvik Nordås, Magnus Lodefalk and Joakim Wernberg
Digital transformation of the economy and society gives rise to a need for updated regulations and rules of the game for the digitised market. Within the EU, this need is reflected in a number of legislative initiatives, most recently the Digital Markets Act (DMA), the Digital Services Act (DSA) and the Artificial Intelligence Act. This work affects not only the European market but also international trade relations that extend beyond the EU's borders. The EU is also part of the Joint Initiative (JI) on E-Commerce which was launched at the 11th WTO Ministerial in 2017 and aims at setting the global rules for digital markets.
Reform of domestic agriculture support in the form of financial subsidies has long been a vexed issue. One relatively promising area for reform is to address WTO members’ entitlements to deploy domestic support, rather than aiming to cut actual expenditures per se. Specifically, reducing entitlements would diminish members’ rights to increase domestic support payments in future. Such reductions are best targeted at those subsidies that distort trading partners’ production and trade incentives, rather than at subsidies generally regarded as either relatively benign, or minimally distorting to support domestic farmers and the agricultural economy. Read our latest working paper on this important issue.
Dr Lauren A. Johnston is Visiting Senior Lecturer, Adelaide University Institute of International Trade and Founding Director, New South Economics. China continues to prioritize its relations with Africa. As a result, China’s Foreign Minister, Wang Yi, has continued with a longstanding Chinese tradition of making an African country the first foreign visit of the year. This op-ed provides analysis of which countries were visited, and why, as well as how the schedule fits with China’s development strategy in Africa.
This work is licensed under Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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