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  • Author: Kyong Hyun Koo
  • Publication Date: 03-2021
  • Content Type: Policy Brief
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: FTAs have been known to have large positive effects on trade creation between member countries. However, it is relatively unexplored how much small/medium-sized enterprises (SMEs) accounted for in the trade creation due to FTAs compared to large-sized enterprises (LEs). We find that Korean FTA policies have significantly increased SMEs’ direct exports to FTA partner countries between 2005 and 2017, although the effects were as much as a half of those for LEs, which indicates a considerable LEs’ premium in the direct export effects of FTAs. We further find that the FTAs also significantly increased the indirect exports of Korean firms, i.e., the domestic input supplies through in-dustrial input-output linkage, and that SMEs have benefited more from the indirect export effects of FTAs than LEs. Considering the direct and indirect export effects together, the LEs’ premium in the total export effects of FTA is found to become smaller.
  • Topic: Treaties and Agreements, Economy, Free Trade, Exports, Trade, Industry
  • Political Geography: Asia, Korea
  • Author: Anand Menon
  • Publication Date: 01-2021
  • Content Type: Special Report
  • Institution: UK in a Changing Europe, King's College London
  • Abstract: Brexit is done. The formal negotiations are over — even though the Trade and Cooperation Agreement paves the way to many further negotiations between the UK and the EU. Our understanding of what Brexit does mean in practice is just beginning. Now the UK is finally able to embark on its new course, we believe that the need for social science to play a role in informing public and political debates is as great if not greater than ever. The contributions that follow underline the scale and scope of the agenda that confronts the United Kingdom. It is meant both as a guide to the issues that will loom large of the months and years to come and as a signal that we intend to deploy the best social science research in order to understand and address them.
  • Topic: Treaties and Agreements, European Union, Economy, Society
  • Political Geography: United Kingdom, Europe
  • Author: Sonali Chowdhry, Gabriel Felbermayr
  • Publication Date: 02-2021
  • Content Type: Working Paper
  • Institution: Kiel Institute for the World Economy (IfW)
  • Abstract: In 2011, the EU-South Korea Free Trade Agreement (EUKFTA) entered into force. With its focus on non-tariff barriers (NTBs), it is a leading example of a deep new generation agreement. Using detailed French customs data for the period 2000 to 2016, we investigate how exporters of different size have gained from the agreement. Applying a diff-in-diff strategy that makes use of the rich dimensionality of the data, we find that firms with larger pre-FTA sizes benefit more from the FTA than firms at the lower end of the size distribution, both at the extensive (product) and the intensive margins of trade. The latter finding is in surprising contrast to leading theories of firm-level behavior. Moreover, we find that our main result is driven by NTB reductions rather than tariff cuts. In shedding light on the distributional effects of trade agreements within exporters, our findings highlight the need for effective SME-chapters in FTAs.
  • Topic: Economics, International Political Economy, Treaties and Agreements, Tariffs, Trade
  • Political Geography: Europe, South Korea, European Union
  • Author: Christine Hübner, Jan Eichhorn, Luuk Molthof, Srđan Cvijić
  • Publication Date: 02-2021
  • Content Type: Special Report
  • Institution: Open Society Foundations
  • Abstract: France is one of the European countries with the highest rates of popular disapproval of countries in the Western Balkans joining the European Union. What is this disapproval based on, and how important is the issue of EU enlargement in the Western Balkans for people in France? Using a combination of 2020 survey data representative of the adult French population and in-depth focus groups with French voters, this report offers a comprehensive insight into the views of the French on whether or not the countries of the Western Balkans should join the European Union.
  • Topic: Diplomacy, Regional Cooperation, Treaties and Agreements, European Union, Regional Integration
  • Political Geography: Europe, France, Balkans
  • Author: Fredrik Erixon
  • Publication Date: 04-2021
  • Content Type: Policy Brief
  • Institution: European Centre for International Political Economy (ECIPE)
  • Abstract: This Policy Brief takes stock of the EU Trade Policy Review – the Commission’s proposed strategy for trade. Despite appearances, the Review doesn’t come close to its billing as a strategy for the new geopolitics of trade. In fact, the Review is weak on key geopolitical developments and rather gives the impression that the EU doesn’t have an ambition to shape outcomes. Obviously, the Review is anchored in Europe’s general economic climate: defensiveness on globalization, competition and digitalization. It follows that Europe is getting increasingly detached from world developments. There are several good parts in the Review. The Commission wants to revive and reform the World Trade Organisation, and it’s clear about what factors that have made the Geneva-based trade body dysfunctional. The Review also acknowledges that the EU will seek a closer alliance with the United States and use that for constructive purposes. Finally, it is welcome that the Commission proposes some new instruments for dealing with market distortions caused by foreign subsidies and protectionism in government procurement. All these initiatives can achieve good outcomes. However, they all require that Europe makes changes in its own policies and positions. The bad parts in the Review are Europe’s weak agenda for getting better market access in the growth regions in the world and its continued passivity on matters related to China. Europe’s main trade-policy challenge in the next decade is to ensure that businesses and consumers in Europe get better integrated with a world-market dynamism that predominantly will come from the Asian region. Absent a realistic and medium-term strategy for dealing with challenges connected to the rise of China, Europe will have difficulties getting the EU-China Comprehensive Agreement on Investment approved. Europe needs an actionable agenda for addressing bilateral frictions with China and problems that occur outside bilateral trade. Finally, the ugly part of the trade strategy are all the commercial policies in the EU – with strong effects on trade – that aren’t recognized or only casually mentioned in the Review. The latter category includes the ambition to introduce an autonomous carbon border tax on imports. Such a policy comes at a high political and economic cost, and the measure’s effect on reducing global carbon emissions is at best very negligible.
  • Topic: Globalization, International Political Economy, International Trade and Finance, Treaties and Agreements, European Union, Geopolitics, Digital Economy, Trade
  • Political Geography: Europe
  • Author: Cornelius Adebahr
  • Publication Date: 05-2020
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The rift between Europe and the United States over Iran is deepening. To regain leverage, the Europeans should engage all eight Gulf states in talks about regional security and nonproliferation. The rift between Europe and the United States over Iran is deepening. Two years of U.S. maximum pressure on Tehran have not yielded the results Washington had hoped for, while the Europeans have failed to put up enough resistance for their transatlantic partner to change course. Worse, the U.S. policy threatens to destabilize the broader Persian Gulf, with direct consequences for Europe. To get ahead of the curve and regain leverage, the European Union (EU), its member states, and the United Kingdom have to look beyond their relations with the Islamic Republic and address wider regional security challenges. The United States’ incipient retreat as a security guarantor and Russia’s increased interest in the region make it necessary for Europe to engage beyond its borders. Despite being barely alive, the 2015 international nuclear deal with Iran offers a good starting point. The Europeans should regionalize some of the agreement’s basic provisions to include the nuclear newcomers on the Arab side of the Gulf. Doing so would advance a nonproliferation agenda that is aimed not at a single country but at the region’s broader interests. Similarly, the Europeans should engage Iran, Iraq, and the six Arab nations of the Gulf Cooperation Council in talks about regional security. Rather than suggesting an all-encompassing security framework, for which the time is not yet ripe, they should pursue a step-by-step approach aimed at codifying internationally recognized principles at the regional level.
  • Topic: Security, Nuclear Weapons, Treaties and Agreements, Nonproliferation
  • Political Geography: Europe, Iran, Middle East, United States of America
  • Author: Iain King
  • Publication Date: 04-2020
  • Content Type: Special Report
  • Institution: Georgetown Journal of International Affairs
  • Abstract: When Good Friday fell on April 10 this year, it was exactly twenty-two years to the day after Northern Ireland’s Good Friday Agreement was signed. That watershed deal of 1998 cemented peace in the Province—a peace that has lasted almost as long as the conflict it brought to an end.
  • Topic: Treaties and Agreements, Governance, Conflict, Peace
  • Political Geography: Europe, Northern Ireland
  • Author: International Crisis Group
  • Publication Date: 08-2020
  • Content Type: Special Report
  • Institution: International Crisis Group
  • Abstract: What’s new? On 29 February 2020, the United States and the Taliban signed an agreement meant to prompt peace talks between the militant group and the Afghan government. Many issues have delayed those talks, including widespread concerns about the Taliban’s willingness to compromise in a political settlement ending the war. Why does it matter? The U.S.-Taliban deal opened a fragile window of opportunity to settle the world’s deadliest conflict. But for talks among Afghans to progress, the Taliban will need to move beyond vague governing principles and put forth concrete negotiating positions on reconciliation, power sharing and governance. What should be done? The Taliban should swiftly determine clear negotiating positions and be prepared to debate – and eventually reach compromises – on these as intra-Afghan talks unfold. The U.S. and other donors should leverage prospects of post-transition assistance as encouragement, while the Afghan government and civil society should engage the group and its ideas.
  • Topic: Treaties and Agreements, Non State Actors, Taliban, Negotiation, Peace
  • Political Geography: Afghanistan, South Asia, United States of America
  • Author: International Crisis Group
  • Publication Date: 04-2020
  • Content Type: Special Report
  • Institution: International Crisis Group
  • Abstract: Elections in 2022 will bring an autonomous regional government to the Bangsamoro, a part of the southern Philippines long riven by rebellion. To prepare for the 2014 peace deal’s last test, the area’s interim self-rule entity needs to accommodate the big families that dominate its politics. What’s new? One year after taking office, following a landmark peace agreement, the Bangsamoro Transition Authority is trying to set the stage for regional stability and durable peace in Muslim Mindanao. In doing so, it needs to deal with powerful political clans that may provoke tensions in the run-up to 2022 elections. Why does it matter? Clans are predominant in the Bangsamoro Autonomous Region’s politics, which could lead to tensions with the new authority. Confrontations among armed families could reverse peace process gains, as could a falling-out between the Moro Islamic Liberation Front, the former rebel group, and clans if the transition goes awry. What should be done? The Bangsamoro transitional government should create a strong regional institution that is pragmatic in finding arrangements with political families and capable of curbing inter-clan feuding as well as overcoming clan-linked patronage networks. Donors should support efforts to ensure the state’s primacy over kinship interests through a broad funding portfolio.
  • Topic: Treaties and Agreements, Conflict, Peace, Autonomy
  • Political Geography: Philippines, Asia-Pacific
  • Author: Sadiq Saffarini
  • Publication Date: 01-2020
  • Content Type: Journal Article
  • Journal: Harvard Journal of Middle Eastern Politics and Policy
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: The article analyzes President Trump’s vision for a comprehensive peace agreement between Israel and Palestine, the so-called Deal of the Century announced on January 28. While the proposal uses the language of hope and prosperity and expresses support for the two-state solution, its provisions actually render the Palestinian “state” inviable. The plan does not empower the Palestinian state with full sovereignty over its territory nor does it recognize its internationally accepted borders, while at the same time nullifying the Palestinian right of return. In short, the plan seeks to legalize and legitimize the status quo by enabling Israeli expansionism and the systemic denial of Palestinian rights, which is a flagrant violation of international law and has no legal validity.
  • Topic: Foreign Policy, Sovereignty, Treaties and Agreements, Territorial Disputes, Peace, Donald Trump
  • Political Geography: Middle East, Israel, Palestine, North America, United States of America