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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.

New ESI Study - The Tran-Pacific Partnership and Japan


As talks to conclude a Trans-Pacific Free Trade Agreement (TPP) have recently progressed , the question of whether Japan should be added to the present list of eleven (United States, Canada, Mexico, Peru, Chile, New Zealand, Australia, Singapore, Malaysia, Brunei, Vietnam) participants and thus of whether it can meet reasonable criteria for open markets has come to the fore. A major obstacle is the structure, practices, and industrial policies associated with the Japanese auto industry. It is perhaps the foremost example of what has become known as the "Closed Open Market" phenomenon. In technical terms the market is completely open with no tariffs or quotas. In reality, the Japanese market, with 6.6 percent, has the lowest penetration of imports and foreign brand autos of all the major auto markets, and this is almost exclusively in the very high price luxury segment. Indeed, Hyundai, the Korean auto maker that is currently perhaps the world?s most competitive producer, has abandoned the Japanese market on the grounds that its non-tariff barriers are so great as to make investment nothing but a waste of money and time. In terms of trade negotiations, this Closed Open Market phenomenon means that Japan can negotiate secure in the knowledge that no matter what formal concessions it makes, imports will not rise. In the particular instance of the TPP, this is all the more the case because the negotiating agenda does not cover the intervention in international currency markets, various investment subsidies, and anti-competitive market structures and practices that cause the major distortions of free market trade flows.

Read more ...

Making the Mexican Miracle

Mexico's performance over the past decade has been good, but Korea, China, Ireland, Taiwan, and Turkey are Mexico?s new peers. They have grown more rapidly and delivered greater gains to their citizens. Mexico is like a global corporation in danger of over-confidence while actually losing market share and becoming more vulnerable to unexpected competition and shocks. Making the Mexican miracle illustrates the threats that the Mexican economy faces, and the steps that it must take to remain competitive.

Click here to download the complete presentation


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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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