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1. What Happens If the United States Leaves the WTO?

Author:
James Bacchus
Publication Date:
06-2026
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Aresolution before Congress calls for US withdrawal from the World Trade Organization (WTO). Both international law and US law permit withdrawal. The case for withdrawal, however, is misguided and misinformed. Much of what is said and widely believed about the effects of WTO membership on the United States is simply untrue. In fact, American membership in the WTO has been for decades and remains today enormously beneficial economically to US businesses, workers, and consumers. Withdrawal by the United States from the WTO would result in the loss of many of these economic benefits, including those derived from decades of accumulated trade commitments made by the 165 other member countries on thousands of different US goods and services traded within the WTO legal framework; those resulting from the commercial shield of WTO rules forbidding trade discrimination against US exports; and those emanating from the availability to the United States of an impartial, binding, and enforceable system of WTO trade dispute settlement. Moreover, withdrawal by the United States would cede US leadership in the WTO to other leading trading countries, including the second-largest trading country in the world, China. Trade is a win-win economically for all WTO members. WTO membership maximizes the overall economic gains from engaging in trade. The United States should remain in the WTO and help lead it toward needed reforms that will make it more beneficial to all in the modern global economy of the 21st century.
Topic:
Economics, Geopolitics, Trade, and WTO
Political Geography:
North America and United States of America

2. China: From Systemic Rival to Systemic Threat

Author:
Andrew Small and Bonnie S. Glaser
Publication Date:
01-2025
Content Type:
Working Paper
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
For the United States and Europe, dealing with the People’s Republic of China (PRC) is now a challenge of such wide-ranging nature that it will cut across almost the entire transatlantic agenda of the incoming Trump administration. From addressing Beijing’s role as the “decisive enabler” for Russia’s war of aggression to rethinking the way that US-EU trade and technology ties need to be organized, China policy no longer occupies a separate silo but conditions every element of the security and economic landscape. Under the Biden administration, Europe and the United States undertook an unprecedented effort not only to coordinate their approaches to the PRC itself, but also to advance on other fronts where the China challenge was the main motivating factor, such as EU-US efforts to negotiate agreements on steel, aluminum, and critical minerals. The two sides’ analysis has grown much closer, and in some areas, this translated into tangible results—whether conveying common red lines to Beijing on the delivery of lethal aid to Moscow and the use of force against Taiwan or tightening controls on advanced semiconductor equipment exports. Overall, however, progress still fell short of the high stakes. Some EU member states treated the Biden administration’s partner-friendly approach as a holiday from difficult strategic choices on China rather than an optimal window in which to make them. EU-level efforts to build more effective approaches on economic security, trade defense, and cyber security were often slow-rolled or undercut by major capitals. There were also areas in which the Biden administration allowed domestic political considerations to undermine efforts to build a common strategic economic approach among US partners—particularly the use of national security tools against US allies, whether the blocking of Nippon’s takeover of US Steel or the initial retention (and suspension rather than lifting) of Section 232 tariffs against the EU. While the two sides are certainly more closely aligned and better coordinated, moving in the right direction is no longer enough. If Europe and the United States are unable to achieve results in several critical areas in the next few years, it will come at a growing cost to their security and economic interests, as well as to the broader transatlantic relationship. Success, on the other hand, would put a new set of foundations under it. Three issues are likely to loom over the agenda for the incoming Trump administration: the threat of the “Second China Shock” to US and European industry; Beijing’s deepening coordination with Russia and other authoritarian states; and intensifying PRC pressure on Taiwan.
Topic:
European Union, Geopolitics, Trade, and Defense Cooperation
Political Geography:
China, Europe, and Asia

3. Shipment of a Controlled Vacuum Furnace to North Korea via Multiple States: An HS Code Case Study

Author:
David Albright
Publication Date:
01-2025
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
In tracking trade data and trade flows, Harmonized System (HS) codes are routinely used to aid searches for dual-use commodities and to help guide the identification of dual-use items that require a license or greater scrutiny. A recurring concern is shipper falsification of HS codes to evade detection or payment of duties. An illustration of such falsifications is a case we learned about via government sources from around 2022 that involved North Korea and a dual-use vacuum furnace suitable for uranium melting that wound its way from Spain to North Korea, via Mexico, South Africa, and China. Such a furnace is typically controlled under the Nuclear Supplier Group (NSG) Part 2 list and is banned for export to North Korea under United Security Council resolutions. This type of furnace is a mainstay of a nuclear weapons program, particularly one that uses weapon-grade uranium as the nuclear explosive material, as North Korea is known to do. With North Korea expanding its uranium enrichment program and producing greater quantities of weapon-grade uranium, this new furnace would be especially important.
Topic:
Nuclear Weapons, Trade, and Dual Use Items
Political Geography:
Asia and North Korea

4. New Information on Shenyang Machine Tool Company’s Illicit Sales to North Korea and Russia

Author:
David Albright and Spencer Faragasso
Publication Date:
01-2025
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
Several years ago, the Institute reported about the relatively large, multinational Chinese company Shenyang Machine Tools Company supplying sophisticated computer numerically controlled (CNC) machine tools, equipped with Western controlled software, to North Korea in violation of UN Security Council (UNSC) sanctions and a supplier country’s trade control laws that banned re-export of this software. New information details the disingenuous way in which the Chinese government investigated this case, indicating nonetheless inadvertently that North Korea received these machine tools, while also demonstrating China’s utter disregard for enforcing UNSC sanctions or its own or others’ export control laws. This case serves as another of the many cases highlighting China as a long-time irresponsible trading partner that responsible companies should avoid when sensitive dual-use goods are involved, lest they be complicit in outfitting North Korea’s, Iran’s, or Russia’s military programs. Today, responsible suppliers are inadvertently facilitating Russia’s prosecution of an illegal war against Ukraine. Given Shenyang Machine Tools Company’s recent exports of goods to Russia with Harmonized Shipments (HS) codes found on the Bureau of Industry and Security (BIS) Common High Priority List (CHPL), this company should be considered for sanctions.
Topic:
Sanctions, Trade, Illegal Trade, and Shenyang Machine Tool Company
Political Geography:
Russia, China, Europe, Asia, and North Korea

5. Understanding the Impact of Remittances on Mexico’s Economy and Safeguarding Their Future Impact

Author:
Ryan C. Berg, Rubi Bledsoe, and Michael Ferguson
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Beyond providing supplemental income for Mexican households, remittances—funds sent by migrants to friends and families in their home country—provide a stable flow of developmental finance to the poorest subregions of the country, which have not historically benefited from international capital flows, such as development aid or foreign direct investment. Mexico, the world’s second-largest recipient of remittances, has seen a steady increase in the total volume of remittances received, primarily due to the strength of the U.S. labor market and concurrent wage growth among Mexican workers in the United States. Mechanisms to keep remittances secure are not impermeable to criminal organizations, which have been known to use small-increment deposits to launder gains from illicit economic activity, including drug trafficking. However, through increased U.S.-Mexico cooperation, both countries can strike the delicate balance between facilitating flows of remittances to promote development and financial inclusion and securing those funds from exploitation by illicit actors.
Topic:
Development, Economy, Trade, Economic Security, and Remittances
Political Geography:
North America and Mexico

6. Korea’s Strategy for Critical Minerals: Navigating New Trade Rules and Global Challenges

Author:
Cheon-Kee Lee
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the establishment of the GATT in 1947 and the WTO multilateral trading system in 1995, trade liberalization has led to an increase in global trade and the internationalization of production through global supply chains. In recent years, however, as non-trade values including national security, labor rights, and environmental protection have become important considerations, supply chains have become an end in themselves rather than a means of pursuing efficiency. Additionally, major trading partners such as the U.S, the EU, and China have sought to regulate global supply chain by leveraging market access to their domestic markets or critical minerals. The proliferation of such unilateral measures has posed significant challenges, as traditional WTO/FTA trade rules have failed to effectively address these new regulatory dynamics. The increasing compliance costs for companies, stemming from emerging supply chain regulations, are exacerbated by the legal constraints and loopholes in existing international trade frameworks, despite previously promised market access in multilateral and bilateral agreements. Against this backdrop, this Brief reviews the current state of disciplines in bilateral and multilateral trade rules and disciplines, with a particular focus on unilateral supply chain regulations. It will explore the critical minerals sector in light of recent sector-specific agreements and arrangements, including the IPEF Supply Chain Agreement, the U.S.-Japan Critical Minerals Agreement or “CMA”, and the EU's Strategic Partnership. While many supply chain issues are emerging in relation to various non-trade values, the critical minerals sector has been the first to see the emergence of more flexible and pragmatic sector-specific agreements and MoUs that depart from the traditional FTA model. This is likely due to the fact that the security of mineral resources is crucial to the competitiveness of domestic industries in many countries. Moreover, the recent trend of resource-owning countries requiring foreign and foreign-owned mining companies to uphold environmental and labor rights during the mineral extraction process has led to the emergence of new ESG (Environmental, Social, and Governance) obligations. The ability to address these elements in a stand-alone agreements or MoUs specific to critical minerals—rather than within the framework of a traditional FTA—marks a key strength of this approach. The evolution of these agreements, especially in the critical minerals sector, is of particular relevance to Korea. As the country faces increasing reliance on the global supply of critical minerals and is deeply impacted by evolving international regulations, it is crucial for Korea to explore its own strategy for securing access to these resources. This Brief will focus on the development of Korea's critical mineral strategy, while drawing the lessons from international agreements.
Topic:
Economics, World Trade Organization, Multilateralism, Trade, and Critical Minerals
Political Geography:
Asia and South Korea

7. Connecting Opportunities: Greece’s Strategic Role in the India-Middle East-Europe Economic Corridor (IMEC)

Author:
Dimitris Gavalas and George Dikaios
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy brief discusses the role of Greece in the India-Middle East-Europe Economic Corridor (IMEC), focusing mainly on those aspects related to infrastructure and ports and the global supply chain. It suggests a series of different actions and highlights different angles that Greece should take into account if it wants to be a major player in the establishment of the Corridor and its gateway to Europe/European Union. – IMEC will be a game changer in international trade relationships, regional tensions, and political challenges. – The main obstacles to IMEC’s establishment are the conflicts in the Middle East and other major national interests of key actors (such as the Chinese monopoly in the region). – Focus is given to port infrastructure, as ports are pivotal to the global supply chain. India pays significant attention to its ports, while the Port of Piraeus is the largest port in Eastern Europe. – The critical role and position of Greece are highlighted, underlying its role as a hub that connects India and the Middle East to Europe. – Greece needs to invest in infrastructure development, build a skilled workforce, and attract foreign investments. – Suggestions for establishing a successful commercial corridor between India and Greece are given, focusing on mutual interests and growth opportunities.
Topic:
Security, Foreign Policy, Trade, and Supply Chains
Political Geography:
Europe, Middle East, India, and Greece

8. From Trade to Supply Chain Investments: China’s Three Roles in the Solar Surge of the Gulf Region

Author:
Qi Wang
Publication Date:
04-2025
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
This paper examines China’s evolving role in the solar energy surge of the Gulf region, with a focus on the United Arab Emirates and Saudi Arabia. It identifies three approaches through which China has progressively deepened its participation: (1) large-scale export of solar products, (2) investment and construction of solar power projects, and (3) offshore investment in local solar manufacturing bases in the Gulf. These approaches reflect not only China’s response to ambitious green energy commitments and rising solar demand in the Gulf, but also the strategic efforts of China’s solar industry to address domestic overcapacity under the framework of the Belt and Road Initiative and mitigate growing trade protectionism. The paper concludes with policy recommendations for China and the Gulf countries to strengthen solar cooperation, tackle trade barriers, and ensure a balanced, transparent, and sustainable energy transition.
Topic:
Investment, Trade, Solar Power, Supply Chains, and Energy Transition
Political Geography:
China, Middle East, Asia, Saudi Arabia, United Arab Emirates, and Gulf Nations

9. The e-commerce challenge: Is importing low-value consignments going to become more cumbersome in the EU and the US?

Author:
Anna Jerzewska
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
In the last few months, terms such as e-commerce and de minimis (threshold below which imported goods are not subject to tariffs) have made headlines both in the EU and in the US. The rapid growth of e-commerce exacerbated problems with this exemption both in the US and in the EU. The first problem is lack of control. Only a percentage of commercial goods are subject to physical border checks, and for e-commerce goods this number is even smaller. Then there is the issue of endangering the level-playing field. De minimis benefits consumers and businesses that rely on it, but harms domestic manufacturers and retail outlets that import in bulk (and thus are subject to full customs and product standards and safety requirements). But can the challenges around the rapid growth of e-commerce be solved by the removal of de minimis? And what would be the consequences of removing the exemption? The paper summarises recent attempts and proposals of removing de minimis in the EU and the US and the challenges faced by both administrations. In both cases, e-commerce is still under discussion and it’s not clear what the final solution will look like. However, there are already noticeable differences in approach.
Topic:
European Union, Trade, Imports, and E-Commerce
Political Geography:
Europe, North America, and United States of America

10. Longer Sticks and Shorter Carrots: How the U.S. is Changing its Engagement in MENA

Author:
Amr Adly
Publication Date:
04-2025
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
The United States’ approach to achieving international hegemony is shifting away from trade and investments back toward bombs and missiles
Topic:
Foreign Policy, Hegemony, Investment, Trade, and Strategic Engagement
Political Geography:
Middle East, North Africa, and United States of America