Trade Infrastructure Archives - WITA http://www.wita.org/atp-research-topics/trade-infrastructure/ Wed, 29 Sep 2021 17:37:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 /wp-content/uploads/2018/08/android-chrome-256x256-80x80.png Trade Infrastructure Archives - WITA http://www.wita.org/atp-research-topics/trade-infrastructure/ 32 32 What Railway Deals Taught Chinese and Brazilians in the Amazon /atp-research/railway-brazil-china-amazon/ Wed, 04 Aug 2021 15:03:39 +0000 /?post_type=atp-research&p=29840 Over the past decade, Chinese investments in Brazil have expanded and diversified considerably, especially ones involving infrastructure. Chinese investors have also diversified geographically. Increasingly, major Brazilian infrastructure projects are being...

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Over the past decade, Chinese investments in Brazil have expanded and diversified considerably, especially ones involving infrastructure. Chinese investors have also diversified geographically. Increasingly, major Brazilian infrastructure projects are being planned or implemented with Chinese backing in environmentally sensitive regions such as the Amazon rain forest and the Cerrado, a large savanna region in Central-West Brazil.

Chinese actors have become directly involved in such projects against a backdrop of sharpening debates about sustainability and other consequences of large-scale infrastructure projects. This is especially true in protected areas such as land populated by Indigenous groups and conservation units. A notable example is the Ferrogrão project, a major railway line designed to cross sections of the Amazon and Cerrado to deliver goods to Brazilian ports.

This paper examines the diverse ways that Brazilian and Chinese actors have learned from each other as they negotiate the terms of these deals. It also explores how these learning processes have been conditioned by intense domestic political debates over these projects in Brazil. Official documents and secondary sources reveal that, rather than a set Chinese way of doing business or a stock Brazilian response, such projects entail dynamic institutional learning. Such learning is shaped not only by the particulars of the Ferrogrão project but also by Chinese actors’ broader engagement with Brazilian infrastructure projects over the past ten years.

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To read the full article from the Carnegie Endowment for International Peace, please click here

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Small Island Developing States: Maritime Transport In The Era Of A Disruptive Pandemic – Empower States To Fend Against Disruptions To Maritime Transportation Systems, Their Lifeline To The World /atp-research/small-islands-maritime-lifeline/ Mon, 03 May 2021 19:13:22 +0000 /?post_type=atp-research&p=28094 The coronavirus disease of 2019 (COVID-19) pandemic may have had less noticeable impacts on small island developing States (SIDS). However, the impacts may be longer lasting and more critical. The...

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The coronavirus disease of 2019 (COVID-19) pandemic may have had less noticeable impacts on small island developing States (SIDS). However, the impacts may be longer lasting and more critical. The pandemic has exacerbated the unique and overwhelming challenges in these States related to connectivity; a high level of dependence on external trade; remoteness and prohibitive transport costs; food security; infrastructure gaps; resilience; sustainability; and access to finance. This policy brief builds on the findings in Review of Maritime Transport 2020 and of the ongoing United Nations-wide project “Transport and trade connectivity in the age of pandemics: Contactless, seamless and collaborative solutions”, launched in 2020 amid the pandemic.1 It highlights key priority actions and policy recommendations to support SIDS in strengthening their ability to respond to shocks and disruptions that undermine their maritime transportation systems and to future proof their maritime supply chains through sustainability and resilience-building efforts.

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To read the full report, please click here.

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The Role of Multilateralism of the WTO in International Trade Stability /atp-research/multilateralism-wto-international-trade/ Tue, 06 Apr 2021 17:32:34 +0000 /?post_type=atp-research&p=30467 We look at the effect of the WTO on stabilizing international trade using both a fixed-effects and an event study approach. Our results show that WTO members experience lower trade...

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We look at the effect of the WTO on stabilizing international trade using both a fixed-effects and an event study approach. Our results show that WTO members experience lower trade volatilties in a predictable and integrated system. In addition, we focus on the trade volatility comovement among countries in a multilateral framework. Previous research has mainly focused on WTO membership in a bilateral trade framework, which only allows interactions between two trade partners without considering any possible influence from other countries. A bilateral trade framework does not fully capture the effect of WTO membership, nor does it investigate why the multilateral platform of the WTO should exist. With a unique setup estimating interactions among multiple trading dyads, we find strong evidence supporting positive correlation or comovement of trade volatilities across trading pairs. Such a comovement appears much stronger among WTO members than between WTO and non-WTO members. Due to the feedback mechanism among dyads in a multilateral framework, such as the WTO, bilateral trade stability may further stabilize the global trade. Our results remain robust to a battery of sensitivity checks.

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To read the full report from the Cambridge University Press, please click here.

 

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Diversification and The World Trading System /atp-research/diversification-trading-system/ Tue, 13 Oct 2020 14:37:10 +0000 /?post_type=atp-research&p=23996 Diversification is important because it is associated with economic growth and reduced volatility. Diversification of exports, which provide foreign exchange and enable imports of critical goods, services, and know-how, is...

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Diversification is important because it is associated with economic growth and reduced volatility. Diversification of exports, which provide foreign exchange and enable imports of critical goods, services, and know-how, is crucial for developing countries. The question we address in this brief is how export diversification is affected by trade policies, including multilateral rules, regional trade agreements, and national measures. The record on diversification is poor across a large number of developing countries, especially in Africa, the Middle East, and Latin America. Asian and Eastern European countries have performed better. Though diversification first requires domestic reforms, the current trading system does not help. The world trading system does not support developing countries with export diversification; moreover, the situation is deteriorating. To promote export diversification in developing countries and to sustain long-term global growth, the Group of Twenty (G20) must restore the credibility of the rule-based system. Reducing tariffs and tariff escalation in labor-intensive manufactures is critical. In many developing countries, the diversification potential for agriculture is severely impeded by subsidies, tariff barriers, and protectionist standards. Individual countries can take many steps to foster export diversification, the most important of which are improving the efficiency of their service sector, liberalizing imports of services, and encouraging inward direct investment. Reforms of the world trading system, spearheaded by the G20, can help promote these changes at the country level.

To download the full report, please click here.

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Uri Dadush is a non-resident scholar at Bruegel, based in Washington, DC and a Senior Fellow at the Policy Center for the New South in Rabat, Morocco. He is also Principal of Economic Policy International, LLC, providing consulting services to international organizations as well as corporations. 

Abdelaaziz Ait Ali is a resident Economist who joined OCP Policy Center after five years’ experience at The Central Bank of Morocco.

Mohammed Al Doghan is an Associate Professor at King Faisal University

Muhammad Bhatti PhD, MBA, is an assistant professor in the College of Business, King Faisal University, in Hofuf, Saudi Arabia. 

Carlos Braga works in the fields of international economics, macroeconomics scenarios, corporate strategy and international agencies (World bank, IMF, WTO, OCDE, UN).

Abdulelah Darandary is an Economist and researcher at KAPSARC. He primarily works on the KAPSARC Global Energy Macroeconometric Model (KGEMM) project.

Anabel González is host of the Peterson Institute’s Trade Winds virtual event series.

Niclas Poitiers joined Bruegel as a research fellow in September 2019.

2020 © All rights reserved

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A New U.S. Policy Framework for the African Century /atp-research/new-us-policy-framework-african-century/ Fri, 07 Aug 2020 15:02:38 +0000 /?post_type=atp-research&p=22480 The U.S. policy toward Africa has been mired in old thinking for too long. A combination of factors including low prioritization, an insular community of specialists, and deference to “bipartisan...

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The U.S. policy toward Africa has been mired in old thinking for too long. A combination of factors including low prioritization, an insular community of specialists, and deference to “bipartisan consensus” has resulted in policies and practices locked in amber. To be sure, continuity and consistency have their merits, but they also act as brakes on creativity, innovation, and fresh thinking. This policy drift leaves the United States ill-equipped for new challenges and discontinuities—such as a global pandemic, for example. It valorizes a decades-old playbook and reflexively dismisses recommendations that veer from the script. Major U.S. policy initiatives, including the African Growth and Opportunity Act (AGOA), the Millennium Challenge Corporation (MCC), the U.S.-African Leaders Summit, and the U.S. International Development Finance Corporation (DFC) are exceptions to the rule and point to the potential for new policy breakthroughs.

The longstanding U.S. goals to advance democracy and governance; peace and security; trade and investment; and development in Africa remain valid. However, it is the pursuit of these objectives that has become unfocused and anachronistic. Over the decades, U.S. policy toward the region has become too encompassing, overstuffed with sub-objectives, and fixated with inputs, not outcomes. Moreover, it persistently treats Africa as a “region apart,” divorced from developments in other areas of the world. U.S. policy priorities toward Africa are almost exclusively about local issues on the continent and are often oblivious to Africa’s sway in the international system. A new policy framework must-see African expertise and influence as a critical part of a broader U.S. approach to tackling global challenges.

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Judd Devermont, Director, Africa Program CSIS

To view the full report at CSIS, please click here 

 

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The Changing Flow of International Trade: Impact on Global Supply Chains & Industrial Real Estate /atp-research/changing-flow-international-trade/ Fri, 31 Jul 2020 15:58:07 +0000 /?post_type=atp-research&p=22326 Global trade provides vital goods to consumers, supports millions of jobs worldwide and is the lifeblood of industrial real estate markets across North America, Europe and Asia Pacific. Over the...

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Global trade provides vital goods to consumers, supports millions of jobs worldwide and is the lifeblood of industrial real estate markets across North America, Europe and Asia Pacific.

Over the past few years, trade and geopolitical tensions, technological advancements and rising transportation costs have led companies to diversify and regionalize their supply chains. This trend has accelerated with the onset of COVID-19.

Supply chains are going through immense change at a time when consumers are purchasing goods online at a record pace. E-commerce is forcing companies to keep larger and more diverse inventories in closer proximity to end users. Inventory-control failures in the first half of 2020—when many companies could not fill orders efficiently—have vividly illustrated the urgency of having more inventory on hand to support online sales. The combination of inventory controls, consumer habits, population growth and transportation strategies will benefit growing seaports throughout the world and will increase the importance of inland ground, rail and air freight hubs in every region.

These changes are leading to massive increases in infrastructure spending and modernization of existing logistics hubs, and will put emerging industrial real estate markets in the Southeast U.S. and Mexico, Mediterranean port markets in Europe and Vietnam in Asia on the radar of both occupiers and investors.

These regions will grow but will dwarf the global trade behemoths of the Western U.S., China and the North Sea ports of Europe. While COVID-19 revealed serious flaws in traditional supply chain strategies—particularly using these three regions as the single point of sourcing and importing of goods—they will remain the major players in global trade. Just like emerging regions, the global gateway powerhouses must modernize to keep up with rapidly evolving consumer, political and technological changes that will shape trade and industrial real estate in the coming years.

Global Industrial – Changing Flow July 2020

To view the original report, click here.

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Should the United States Create a West Bank/Gaza Enterprise Fund (WGEF)? /atp-research/should-the-united-states-create-a-west-bank-gaza-enterprise-fund-wgef/ Thu, 30 Jul 2020 17:08:12 +0000 /?post_type=atp-research&p=22344 It is in the interest of the United States to explore the creation of an enterprise fund for the West Bank and Gaza as part of its continuing efforts to...

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It is in the interest of the United States to explore the creation of an enterprise fund for the West Bank and Gaza as part of its continuing efforts to foster peace and prosperity in the Middle East. With the growth of joint Israeli-Palestinian ventures and people-to-people exchanges facilitated by an enterprise fund, the United States can create the common entrepreneurial ground on which a more robust peace process can stand. The spread of Covid-19 has shuttered schools and businesses and limited public gatherings in places such as markets, increasing the financial stress felt by many in the region. The pandemic has also exacerbated youth unemployment, which now stands at 42 percent, illustrating there is an acute need for social and economic opportunities. Post-COVID-19, employment prospects may more easily improve if, alongside a lightening of the political climate, there is greater access to capital. The deployment of innovative financial instruments to spur private sector growth can prompt dramatic socioeconomic changes in the West Bank and Gaza.

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To view the full report at CSIS, please click here

 

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WTO Annual Report 2020 /atp-research/wto-annual-report-2020/ Wed, 01 Jul 2020 16:49:27 +0000 /?post_type=atp-research&p=22180 The 2020 Annual Report provides a comprehensive account of the WTO’s activities in 2019 and early 2020. The report begins with a message from WTO Director-General Roberto Azevêdo and a...

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The 2020 Annual Report provides a comprehensive account of the WTO’s activities in 2019 and early 2020. The report begins with a message from WTO Director-General Roberto Azevêdo and a brief overview of the past year. This is followed by in-depth accounts of the WTO’s main areas of activity over the past 12 months. Spotlights highlight major WTO events and initiatives.

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To view the full report, please click here

 

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The Impact of COVID-19 on the Future of Advanced Manufacturing and Production: Insights from the World Economic Forum’s Global Network of Advanced Manufacturing Hubs /atp-research/impact-covid-19-advanced-manufacturing-hubs/ Thu, 04 Jun 2020 18:31:37 +0000 /?post_type=atp-research&p=21131 While powerful megatrends like global trade tensions, climate change, new technology innovations, and the current COVID-19 crisis impact all parts of the globe, the reality of those impacts – and...

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While powerful megatrends like global trade tensions, climate change, new technology innovations, and the current COVID-19 crisis impact all parts of the globe, the reality of those impacts – and therefore the necessary responses to them – are inherently driven by unique regional characteristics and the regional enabling environments. The Global Network of Advanced Manufacturing Hubs (AMHUBs) connects regional manufacturing ecosystems to help rapidly transform manufacturing to keep pace with the global megatrends that might otherwise create disruptions for manufacturers around the globe.

With the arrival of the coronavirus pandemic, there is a need for the industry to move faster than ever to support the response to this international health crisis while mitigating its impact on manufacturers and their respective supply chain networks around the globe. This paper reflects an aggregate of voices from the Global Network of AMHUBs and focuses on COVID-19’s impact in each region; response efforts from manufacturing and governments; and best practices to achieve rapid results and mitigate repercussions to subsequent regions by learning from those affected earlier. The World Economic Forum is committed to enabling and amplifying cross-AMHUB collaborations that accelerate the industry’s ability to adapt to the current crisis while ensuring future resilience through advanced manufacturing technologies and processes.

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To view the original report, click here.

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A modern tragedy? COVID-19 and US-China relations /atp-research/a-modern-tragedy-covid-19-and-us-china-relations/ Fri, 01 May 2020 16:43:32 +0000 /?post_type=atp-research&p=21585 This policy brief invokes the standards of ancient Greek drama to analyze the COVID-19 pandemic as a potential tragedy in U.S.-China relations and a potential tragedy for the world. The...

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This policy brief invokes the standards of ancient Greek drama to analyze the COVID-19 pandemic as a potential tragedy in U.S.-China relations and a potential tragedy for the world. The nature of the two countries’ political realities in 2020 have led to the initial mismanagement of the crisis on both sides of the Pacific. And the interactions between the two sides, and with other actors, such as the World Health Organization, have so far squandered historic opportunities for cooperation to tackle a common threat. The finger-pointing and politically driven accusations between the worlds’ two leading powers — and between the Republican and Democratic parties in the United States — might have catastrophic results, particularly when the virus spreads to the world’s most impoverished nations.

The brief calls for a ceasefire between Beijing and Washington on criticism of the two countries’ initial responses to the SARS-CoV-2 virus, accompanied by a commitment to an eventual international investigation of what went wrong in all countries during the early phases of the pandemic. The brief concludes with six areas in which the United States and China should seek cooperation: to share best practices to stem the further spread of the coronavirus; to develop effective vaccines at the earliest possible date; to prepare in advance for mass manufacturing and global distribution of vaccines that are developed; to assist the neediest countries in fighting the disease; to manage debt crises and combat famines in the developing world that might result from the pandemic, and to preserve global trade by privileging diversification of supply chains and national strategic reserves over economic nationalism and less efficient forms of production.

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To view the full report at the Brookings Institution, please click here

 

 

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