In the aftermath of the Great Recession an increasing number of countries, including China, India and Brazil, have come to embrace a new kind of protectionist trade policy that seeks to pressure foreign enterprises to "localize" economic activity in order to create domestic jobs. Not content to trust the global trade and investment system, these nations are putting in place an array of unfair trade practices to promote local production in lieu of imports. These practices, called localization barriers to trade, include measures such as local content requirements, forced offsets, and forced intellectual property or technology transfer as a condition of market access. These policies inflict significant damage on the countries affected by them, the broader global economy, and even, ironically, the very nations that implement them. This report offers an innovative typology of trade and development strategies, documents the extent of localization barriers to trade U.S. enterprises face in global markets, and offers policy responses that can assist in creating a new global trade regime that favors rules- and market-based trade while supporting the modern knowledge- and innovation-based global economy.
Localization Barriers to Trade: Threat to the Global Innovation Economy
Increased Productivity is Key for Healthy Manufacturers, Healthy Economy
In today’s hypercompetitive global economy, even the best manufacturers need to continuously boost productivity to survive. However, a growing number of pundits, activists and policymakers now argue that productivity causes job loss and therefore is bad for the economy. They are wrong.
What Really Is Competitiveness?
Competitiveness is an important concept for measuring economic health but many get the meaning wrong. The true definition of competitiveness is the ability of a region to export more in value added terms than it imports when including for “terms of trade” to reflect all government “discounts” and import barriers.
Managing the Helium Reserve: Auctions are the Best Way to Allocate Scarce Resources
Unless Congress acts soon, the Federal Helium Program will begin shutting down on October 1. If this happens a valuable federal resource will lie unutilized and 42 percent of current domestic supply will disappear at a time when the helium market is already experiencing shortages. Congress should reauthorize the program with two changes. First, the government should increasingly use auctions to maximize its revenue. Second, since the Reserve will soon be depleted, annual sales should decline gradually, giving the markets time to adjust.
Achieving Shared Growth for the U.S. in a Global Economy
Robert Atkinson will present on "Achieving Shared Growth for the U.S. in a Global Economy" to the 2013 LEAD Conference. Leading voices from academia, business, and government will gather on Georgetown’s campus for a bipartisan discussion on strategies to promote shared economic growth. The LEAD Conference is free and open to the public.