Saturday, January 30, 2021

More free trade, lesser the threat to national security?

Came across this exhaustive piece by Scott Lincicome on the importance of free markets, more trade and less national security nationalism!

Writing in Cato's blog, Scott in Manufactured Crisis:Deindustrialization, Free Markets, and National Security argues against being insular, inward looking and anti-free trade.He decries the use of the "national security" exception as an industrial strategy.

An interesting part of the study is the reference to increased trade between countries leading to reduced wars.

An interesting study overall on the position that freer trade, openness on trade, lower tariffs and more engagement in world trade will boost national security and not undermine it.

Thursday, January 7, 2021

Big international investment deals and their implications - the EU and China cosy up

My first blogpost of 2021 and its on a relatively less discussed subject - the EU-China Investment agreement being negotiatied.

News that there is in-principle approval to the deal is coming out. The strategic implications of the deal are discussed here.

Found this short video on the subject by Taylor Wessing.

Highlights of the video:

1. The Agreement will replace all the existing BITs between China and EU Member States

2. It has been negotiated for a long, long time.

3. May require ratification from EU Member States depending on the content.

4. Further market access to EU firms in China based on the removal of restrictions and conditions in the negative list of China

5. More stability and predictablity if commitments in blateral treaty than domestic law - so though domestic may have liberalised conditions for business already and this is reassuring, ofreign businesses look at their inscription in clear term sin international agreements - for on ebasic reason - yes, dispute resolution

6. Not clear if the EU multilateral investment court is part of the draft agreement

    Would be interesting to see the finer detals of the agreement once it is public - what standards it sets for substantive provisions, what remains out of the ambit of the agreemenst, how self-judging will the national security exception be?