Trade Liberalization - Waseda University · 2015-06-26 · Trade Liberalization Public Opinion Prof. Shu The Trans-Pacific Partnership Agreement Zhang Lu 5614A320 Mao Meng 5614A323

Trade LiberalizationPublic OpinionProf. Shu

The Trans-Pacific Partnership Agreement Zhang Lu 5614A320

Mao Meng 5614A323

Case Study: The Cross Strait Service Trade Agreement Zhang Shuyang 5614A319

Shi Yanyu 5614A310

Trade Diasporas Song Jiawen 5614A314

He Yiyun 5614A305

The Trans -PacificPartnership Agreementin the perspective of Japan

PUBLIC OPINIONZHANG LU 5614A320MAO MENG 5614A323

Trade Liberalization

Outline

1 Introduction

2. Current Situation 2-1 Membership

2-2 TPP & WTO & FTA

2-3 Some Public Opinions

3. TPP in the perspective of Japan 3-1 TPP's Significance to Japan

3-2 Negotiation with US

3-3 Public concern

4. Conclusion

Introduction

The TPP, the Trans-Pacific Partnership, is a proposed regionalregulatory and investment treaty

TPP intends to “enhance trade and investment among the TPPpartner countries, to promote innovation, economic growth anddevelopment, and to support the creation and retention of jobs.”

Membership

The proposed agreementbegan in 2005 as the Trans-Pacific Strategic EconomicPartnership Agreement(TPSEP or P4), while eightmore have joinednegotiations for TPP later,whose text has not yetbeen finalized.

Recently, South Korea alsoasked for participating inTPP

Source: wikipedia

Membership As of 2015, Thirteen countries

throughout the Asia Pacific regionhave participated in negotiations onthe TPP: Australia, Brunei, Canada,Chile, Japan, Malaysia, Mexico, NewZealand, Peru, Singapore, South Korea,the United States, and Vietnam.

Source: Thomson Reuters

Current Situation

WTO & FTA & TPP in tariff case

Tariff Reduction Tariff AbolitionW T O F T A

153 members Reducing in tariff,

government subsidy andexport subsidy

Lower tariff barrier

Between two or morecountries

No tariff on all trade goods(generally 90% trade goods)in 10 years

10% exception

TPP（FTA between 12 countries） Negotiation on tariff abolition

between 12 counties

No tariff on all trade goods (noexception)

TPP is also a kind of FTA,but no exception on

trading goods inapplying the no tariff rule

Member can both protecttheir own industry andbenefit from low tariff

Public Opinions

Although the text of thetreaty has not been madepublic, Wikileaks haspublished several leakeddocuments since 2013.

A number of Scholars alsoelected officials havecriticized and protestedagainst the treaty, in largepart because of thesecrecy of negotiations, theagreement's expansivescope, and controversialclauses in drafts leaked tothe public.

Critics of the TPP have noted that thedeal has little to do with free trade.Rather, the TPP is about limitingregulation, helping corporate interestsand imposes fiercer standards ofintellectual property (to, again, largelybenefit corporate interests).

“designed to carry forward theneoliberal project to maximize profitand domination, and to set theworking people in the world incompetition with one another so as tolower wages to increase insecurity.”

Most of Trans-Pacific Partnership isnot about “Trade” but CoversMany Matters Under State Authority Non-Trade Chapters-Government Procurement-Investment-Services-Financial Services-Telecommunications-E-commerce-Intellectual Property-Visas/Temporary Movement of NaturalPersons-Regulatory Coherence-Sanitary and Phytosanitary Standards(food standards, animal disease, invasivespecies)-Technical Barriers (product safetystandards, toxics, labeling)-Competition Policy-State Owned Enterprises -Supply Chains-Labor-Environment-"Transparency" (drug formularies)

Trade Chapters

-Market Access for Goods

-Customs

-Trade Facilitation and Capacity Building

-Trade Remedies (Anti-dumping/CVD)

-Subsidies

Administrative Chapters-Initial Provisions

-Exceptions

-Dispute Settlement

-Final Provisions

Julian Assange from WikiLeaks

Julian Assange

Founder of WikiLeaks

On March 26, 2015 WikiLeaksreleased the TPP's InvestmentChapter.

According to WikiLeaks, theTreaty would grant the powerto global corporations to suegovernments in tribunalsorganized by the World Bankor the United Nations toobtain taxpayercompensation for loss ofexpected future profits due togovernment actions

US Congress

Concurring in portion of Senate Amdt comprising title II (exceptsection 212): H.R. 1314 Trade Act of 2015

TPP's Significance to Japan

Potential Benefit is significant.

2015/6/23

To Abe Administration

the TPP is a top priority in his agenda torestructure Japan’s economy and boostefficiency, particularly in areas like agriculture.Its success is essential at a time when hisbroader economic revival package, knownas Abenomics, faces widespread skepticismand some big challenges two years after itslaunch

2015/6/23

The Negotiation Between U.S andJapan is Getting Closer

90% finished, with the final challengeremained of Auto and Farmingindustries.

Washington’s demand that Japansubstantially increase imports of rice forconsumer use and Tokyo’s demandthat the U.S. eliminate immediately its2.5% tariff on auto-parts imports.

Public's Concern over TPP

Threat to local food industry. (also food safety) Foodself-sufficiency rate is 39 percent, which is expectedto drop dramatically under TPP.

Japanese pulic based health care system will bedestroyed by incoming U.S profit based insurancecompany.

TPP will change Japan's patent law which willbenefit American companies.

Japanese protest TPP

Filled Lawsuit

A total of 1,063 plaintiffs, including lawmakers, claimed in thecase brought to the Tokyo District Court that the proposedTrans-Pacific Partnership would undermine their basic humanrights under the Constitution.

Thank You！

Case Study: The Cross StraitService Trade Agreement

ZHANG Shuyang 5614A319SHI Yanyu 5614A3105

Background of CSSTA

• In 2010, the government signed a freetrade agreement, the EconomicCooperation Framework Agreement(ECFA), with China

• In fact a one of the follow-up agreementsof ECFA

Cross-Strait Service Trade Agreement

• In June 2013, Taiwan and China proceededwith the Cross-Strait Service TradeAgreement (CSSTA) within the frameworkof ECFA

• It would reduce the trade restrictions inservice sectors

• Up to 64 Taiwanese industries and up to 80Chinese industries will be opened.

• On 17 March 2014, KMT announced that billhad be considered reviewed.

Contents

• Listed the ruling of1. transparency requirements2. Administration of regulatory measures3. Prevention of unfair competition4. Emergency negotiation mechanism5. Free movement of payments and capital6. Principle of fair and equitable treatment.

Contents

• business services,communication services,construction and relatedengineering services,distribution services,environmental services,health-related and socialservices, tourism andtravel-related services,recreational, cultural, andsporting services,transport services, andfinancial services

Controversial Issues

Is the tradeagreementsymmetrical or not?1. The regulation of

each party differsin the text

Controversial Issues

2. The size of the economy differ significantlyin various aspectsEx. 95 Mainland China corporations ranked inFortune Global 500 while only 6 Taiwancorporations ranked in (2014)

Controversial Issues

3. The DistinctCharacteristics ofCross-StraitAgreements• Unresolved

SovereignDispute and itsConsequence

Sunflower Movement

• On 18th March,numbers ofstudents, civilgroups and otherprotestorsdemonstratedoutside theLegislative Yuan.

Sunflower Movement

Demands:• Send the CSSTA back to the Executive

Yuan• Legislation of an oversight mechanism for

all cross-strait agreements• Review the CSSTA under the oversight act• Call for Citizens’ Constitutional Assembly

TaiwanAdvocates:

• Boost Economy• International Credibility

Opponents:• Economic Imbalance• National Security

Mainland China

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TaiwanOpponents:

• Economic Imbalance• National Security• Opacity

The Analysis on the Impact of CSSTA on TaiwanJang ,sl. (2013, July 16).兩岸服貿協議對我國的衝擊分析[The Analysis on the Impact of CSSTA on Taiwan].Retrieved June 22, 2015 from http://homepage.ntu.edu.tw/~ntuperc/conference-1-files/20130725_3_1.pdf

Protest Movement of CSSTA

The Sunflower Student Movement(Occupying the Legislative Chamber)

Hsu, Crystal (27 March 2014). "TRADE PACT SIEGE: Majority opposestrade agreement: poll". Taipei Times. Retrieved 9 April 2014.http://www.taipeitimes.com/News/taiwan/archives/2014/03/27/2003586647

Small and medium businesswill suffer

Unemployment rate will rise

Opacity

Chinese capital has alreadyentered Taiwanese retailingbusiness 4 years ago

Difference of the size ofdomestic market

Social welfare will deteriorateChinese capital createsmore job opportunities

Hearings had already beenheld before ratification

P.R.C Ministry of Commerce

0102030405060708090

Mainland China Taiwan

Finance-RelatedOthers

Ministry of Commerce of PRC. (2013, June 25).商务部台港澳司负责人解读《海峡两岸服务贸易协议》[Analysis of CSSTA fromthe officer in charge of Department of Taiwan, Hongkong and Macao Affairs of Ministry of Commerce]. Retrieved June 22, 2015from http://www.mofcom.gov.cn/article/ae/ag/201306/20130600174961.shtml

Wu, jm., & Li, hf. (2014, March 23).台湾经济主管部门：谣言造成民众对服贸恐慌是害台湾[Department of Economy of Taiwan: Panic causedby rumor is harmful to Taiwan]. Xinhua Net.Retrieved June 22, 2015 fromhttp://news.xinhuanet.com/tw/2014-03/23/c_119901131.htm

阮次山：马英九胆子小或退服贸大陆不可对台让步 [Anthony Yuen: Ma Ying-jeou is cowardly andmay repeal CSSTA, Mainland China can’t makecompromise to Taiwan]. (2014, April 1). Phoenix TV.Retrieved June 22, 2015 fromhttp://phtv.ifeng.com/program/xwjrt/detail_2014_04/01/35348423_0.shtml

大陆有必要和台湾签“两岸服务贸易协定”吗？[Is it necessary for Mainland China to sign CSSTA with Taiwan?].(2014, March 21). Phoenix TV. Retrieved June 22, 2015 from http://phtv.ifeng.com/program/ssblh/hudong/

Trade Diasporas andPublic Opinion

HE YIYUN 5614A305-9 GSICCSHE YIYUN 5614A305-9 GSICCS

SONGJIAWEN 5614A314-0 GSICCSSONGJIAWEN 5614A314-0 GSICCS

DiasporaTradingDiasporas

“are communities of merchants livingamong aliens in associated networks”

---- Philip D. Curtin

DefinitionScattered population with a common originMovement of population from original homelandThe effects of the movement

Charaterization of diaspora:Catastrophic origins, mass nature; nostalgia; stayer and moverDisturbing effects: loneliness and sadness

Origins of diaspora:Greek translation of the Bible- “scattering dispersion”Hebrew words –the language of the Israelites and their ancestors

DiasporaTradingDiasporas

“are communities of merchants livingamong aliens in associated networks”

---- Philip D. Curtin

• Babylon as a site of oppression• Destruction of Jerusalem and razing of the walls of its temple

in 586BC• victim diaspora tradition: enslavement, exile and displacement• (pessimistic)

• Babylon as a site of creativity• Immediate descendant; rich and diverse culture: Babylonian

names and custom; Babylonian calendar and language

Victim Diasporas: JewsEarly diasporas stage: Babylonian captivityVictim Diasporas: JewsEarly diasporas stage: Babylonian captivity

Babylonian destroyed the Jewish homeland and carted the inhabitants off toBabylon to be slaves. Jews remained their own identity.

Early diasporas stage: Babylonian captivityEarly diasporas stage: Babylonian captivity

The Result ofTrade Diasporas

process of establishinglong-distance trade

IMPORTANT

Development of globalcapitalism

Transfer of Technology,imperial and colonialventures

Missionary campaigns,transatlantic slavetrade

-- Not always POSITIVE COMMUNITY (Slave Trade andColonialism-- Still important vanguard to Global Markets

-- Not always POSITIVE COMMUNITY (Slave Trade andColonialism-- Still important vanguard to Global Markets

Case Study

Reason for Chinese DiasporasAnd

The Formation of Chinatown

Robin Cohen. (2002) “Global Diasporas:An Introduction”. Routledge Publish.Robin Cohen. (2002) “Global Diasporas:An Introduction”. Routledge Publish.

The Reasonsof Trade DiasporasOf China

At the first place: Isolated of its own country

Create economic and culture ties

Demand for products

“Archipelago of Towns”

New form of international migration

The Function ofChinatown inOther Countries

Products: Appeal to local citizens

Money laundering

Different culture, service, business

Community for people of same ethnic group

Illegal dealings

Public OpinionTowardChinatown

Potential security threats: illegal immigrants

Exotic cuisine and food attractive

The quantity of immigrants:issue of employment

Cosmopolitanism vs. Localism

Contribution toward local economy

The Attitude ofGovernment towardPublic Opinion andIssue of Chinatown Not seeing them

as negative forceNot seeing themas negative force

James Ciment, John Radzilowski. (2013)“American Immigration: An Encyclopediaof Political, Social, and Cultural Change”.Routledge Publish.

James Ciment, John Radzilowski. (2013)“American Immigration: An Encyclopediaof Political, Social, and Cultural Change”.Routledge Publish.

Conclusion

Not seeing themas negative force

-- Globalization has enhanced the practical,economic, and affective roles of diasporas

-- Trading diasporas can be seen as anenduring and perhaps innovatory model ofsocial organization that may be advantageousto the diasporas itself, its homeland and itsplace of settlement, that's why it obtains thesupport from both authority and publics, tosome extent

-- Globalization has enhanced the practical,economic, and affective roles of diasporas

-- Trading diasporas can be seen as anenduring and perhaps innovatory model ofsocial organization that may be advantageousto the diasporas itself, its homeland and itsplace of settlement, that's why it obtains thesupport from both authority and publics, tosome extent