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Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference


 Clyde Prestowitz giving presentation to CDI...


Steve Olson teaching trade negotiations at the Mekong Institute...


Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

International Trade

Can we identify under what circumstances trade will be beneficial or detrimental to the overall wealth of a nation? The benefits of trade lie in its potential to boost productivity levels. Indeed, international trade has brought great increases in wealth and innovation over the years, and is responsible for much of the recent increases in productivity growth, living standards and GDP in both developed and developing countries. But does it always and everywhere benefit those engaged in it? Alas, no.

At ESI, our scholars, analysts and industry experts have long sought to promote international trade policies that unlock the potential of our companies and the individuals who labor in them. Increasing our competitiveness is crucial to surviving in the new, global economy, but so too are running responsible fiscal and monetary policies, and ensuring that everyone is playing according to the same 'rules of the game,' in the global trading system.

Shrinking the Atlantic

Click Here to Download the Full Report in PDF Format

Former American ambassador to Tokyo Mike Mansfield was fond of calling the U.S.-Japan relationship the most important bilateral relationship in the world. Yet for all the undeniable importance of the interaction of the world's two largest national economies, this statement is an exaggeration. The U.S.-Japan relationship continues to be outweighed by America's ties with the European Union (EU). And the U.S.-European relationship remains Number One not only in the security sphere, but in the economic sphere as well.

Nonetheless, transatlantic relations stand at a critical juncture, and much evidence indicates that their continuing importance is not fully appreciated in the United States. Some of the reasons are understandable. The Asia-Pacific region's sheer size, its breathtaking economic and technological progress, and its staggering potential - both as market and as rival - make it easy to overlook a European Union whose unemployment rates are too high, whose growth rates are too low (when they are positive at all), and whose once promising integration plans seem to have stalled out.

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Labor Standards in the Global Trading System

Click Here to Download the Full Report in PDF Format

At the 1999 Ministerial Meeting in Seattle, the World Trade Organization (WTO) failed to launch a new round of multilateral trade negotiations, because member governments could not agree about how much WTO rules should constrain their policymaking prerogatives. 

The purpose of the WTO is to promote trade that raises incomes and growth by regulating tariffs and other government policies that limit imports and artificially boost exports - i.e., to encourage trade based on comparative advantages, which results in a more efficient global allocation of resources. In this context, WTO members recognize the importance of ensuring that developing countries share in the benefits of this trade

Labor standards are just one arena where some governments see stronger international rules enhancing the benefits of globalization, while others view them as threatening their competitive advantages and sovereignty. Labor standards offers a window on the challenges national governments face in reaching consensus about how the WTO system should evolve.

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Incomplete Markets and the Current Account Deficit

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Conventional economic wisdom argues that the reason the U.S. has a trade deficit with Japan is because of the low U.S. savings rate, which in turn, is allegedly caused by spendthrift consumers not saving enough, and by the large U.S. budget imbalance. In this paper, Paul Willen argues that other factors provide compelling insight into the trade deficit, particularly its persistence. He provides a cogent demostration of how the interaction between a complete market, such as that of the U.S., and an incomplete market, such as Japan's, can be predicted to cause a persistent trade deficit.


Sanctions and Export Controls in a Global Economy

Click Here to Download the Remarks in PDF Format

Remarks by William Reinsch, Under Secretary of Commerce for Export Administration, to the Economic Strategy Institute May 29,1996.


Reconciling Trade and the Environment in the W.T.O.

Click Here to Download the Report in PDF Format.

This study examines when and under what circumstances the World Trade Organization should engage in setting international environemtal standards and how to balance that commitment with its overarching goal of promoting international trade.

The report's findings show that WTO participation in setting international environmental standards can simultaneously protect the global commons and encourage international trade based on comparative advantage.


How Beyond Rights Help Japan Benefit From Supply Chains and Greater Trade with East Asia

This report explores the role of Japan as Asia's pre-eminent air cargo hub, and the challenges facing the industry from the rise of competitve challenges from major Chinese airports and transportation hubs. The report's author, Robert Cohen, finds that if Japan liberalized its regulations regarding "beyond rights" - the ability of foreign air cargo handlers to offer additional services "beyond" Japan's airports, it would enhance its regional role as a cargo hub.

Click Here to Download the Report in PDF Format


Where is International Air Transport Going?

Presentation by Scott C. Gibson, visiting fellow at the Economic Strategy Insitute, on the future of the international air cargo industry in March, 1998.

Click Here to Download the Presentation in PDF Format Here


The U.S. and Japan: Deja Vu All Over Again?

James Fallows of the Atlantic Monthly leads a panel discussion on the state of U.S.- Japan trade relations at the Economic Strategy Institute on March 30, 1995. Panel participants include Ayako Doi of the Japan Daily Digest; Richard Koo of the Nomura Research Institute; Kiyohiko Nanao, Minister for Economic Affairs, Embassy of Japan; and Ira Shapiro, General Counsel, Office of the U.S. Trade Representative.

Click Here to Download the Transcripts of the Panel Discussion in PDF Format


The Turning Point for Labor and Trade

Howard B. Samuel, President of the AFL-CIO Industrial Union Department, examines the relationship of labor unions to international trade agreements and the history of labor's positions on trade issues.

Click Here to Download the Report in PDF Format


The Trade Deficit: Where Does it Come From and What Does it Do? - Peter Morici

Peter Morici examines the impact of trade and current account deficits on the U.S. economy. He finds that, far from being the 'other side of an immutable accounting identity - the difference between domestic savings and investment,' trade and current account deficits are influenced by other factors, like foreign investment and exchange rate policies, as well.

Click Here to Download the Report in PDF Format


Antitrust in the Global Trading System - Peter Morici

This study examines antitrust law and enforcement in the three largest enforcement jurisdictions (the United States, the EU and Japan), considers how those regimes differ, and delineates the challenges those differences pose for fashioning an effective CPA. It then proposes how a CPA could be structured that accommodates diversity among national approaches to policy while also improving the contestability of international markets.

Click Here to Download the Report in Full PDF Format


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Latest Publications

The Betrayal of American Prosperity.

The Trans-Paific Partnership and Japan.

Making the Mexian Miracle.

Industrial Policy and Rebalancing in the US and China.

The Evolving Role of China in International Institutions.


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Economic Strategy Institute

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