Free-trade deals are a losing gamble Oct 21, 2009
The FTAs were followed by higher trade deficits favouring the FTA partner country, long phase-in periods for free trade (particularly for agricultural trade) and negative impacts on the Australian economy which are related to trade diversion. The anticipated gains for Australian exporters have fallen well short of estimates. (Sydney Morning Herald -- Business)
China swirls in whirlpool of protectionism Oct 19, 2009
"The tire safeguard case encouraged protectionism in the US, which led to a broad blockade of Chinese products. And other countries are following suit, fearing the trade diversion," said He Weiwen, managing director of the China Society for WTO Studies. According to a Global Trade Alert report released in late September, conservatively estimated, 121 beggarthy-neighbor measures have been implemented by G20 governments since November. (Xinhuanet, China)
A historic agreement Aug 15, 2009
The minimum 35% value addition norm will prevent trade diversion. India needs to quickly seal an agreement in services too, where it has a big advantage. (India Times)
* ECFA will bring no trade benefit to Taiwan Aug 14, 2009
A report published by the Chung-Hua Institution for Economic Research (CIER) showed that the effects of trade diversion and trade creation from signing an economic cooperation framework agreement (ECFA) with China would not be beneficial to Taiwans overall economic development ... This trade diversion would result in Taiwanese manufacturers losing market share to Chinese firms, which have lower production costs ... China would be the one to benefit from the trade diversion in these fields. (Taipei Times, Taiwan -- World Business)
* ECFA is crucial to Taiwans ability to compete: SEF chair Jun 28, 2009
Chiang said economic agreements between countries can lead to a trade diversion effect, which is usually unfavorable to those excluded from the pacts. For example, he said that after South Korea signed a free trade agreement (FTA) with the US, some Taiwanese businesses decided to set up operations in South Korea to obtain tariff-free treatment for their exports to the US.. (Taipei Times, Taiwan -- Sports)
Speed up customs reform Jun 27, 2009
We are poised for free-trade with the Association of South-East Asian Nations, and a distorted tariff regime here can mean needless trade diversion to Asean. Read business stories in. (India Times)
