Anti-dumping: China, the U.S., Japan and EU

       Today, I just read the Asian Business Daily. Recently, the US-China anti-dumping stand-off over furfuryl alcohol still on and China accuses Japan and EU of steel dumping as well. No matter which of the two events,  China is involved. Even these two events are negative, personally, I do not think that will be the negative impact on China.

       With respect to the "China accuses Japan and EU of steel dumping ", according to the MOC said on its website, the result of this issue is those importing such products will be compelled to pay anti-dumping deposits to the country’s customs authorities starting Wednesday. It means that the powerful rules are existed in the international business; those rules just like the intangible safeguard to maintain the balance of the international trade. However, it is still concerned about the anti-dumping probe was launched by China  amid concerns that certain high-performance stainless steel seamless tubes from Japan and EU had flooded the domestic market.

    The same situation as " the US-China anti-dumping stand-off over furfuryl alcohol still on ",  the existing imports order on the Chinese product, mostly used in organic chemistry, would be maintained. The current duty ranges from 43.54% to 50.43%. Even China has been putting pressure on the U.S. to drop its anti-duming duties it imposes on industrial furfury alcohol, the US said that it will still maintain the anti-dumping duties despite that furore it has caused between the two countries. Furfury alcohol is quite important because it is a chemical agent used in the manufacture of resins and adhesives. It’s also used as an agent to encourage surfaces to attract liquids. As a result, in my opinion, this is one of the most important reason why the United States wants to maintain the anti-dumping duties.

    I won't judge which country is right or wrong, I still believe that each of them has its own reason for doing so. The product dumping will not be the persistent dumping and I believe the Department of Commerce and the International Trade Commission will keep it balance as well.

Ports and the Providence Working Waterfront

Despite the ongoing transformations in the maritime transportation industry and the rise of global supply chain systems, most of the world’s important container ports remain urban. Maritime transport is the shipment of goods (cargo) and people by sea and other waterways. Port operations are a necessary tool to enable maritime trade between trading partners. In short, seaports became considered as strategic operational nodes in global trade routes and shipping network. Because of this, the Providence Working Waterfront Alliance concerned about the future of the ports in Rhode Island.

In any economy, the shipping industry plays a significant role in its import and export activities. Providence Harbor was founded in 1636 at the convergence of two rivers and Narragansett Bay, Providence early on developed as an active center for fishing and trading. Until now, it is still quietly important of Rhode Island’s economy because the market served today by the Port of Providence covers 2,000 square miles, includes Rhode Island, Northeastern Connecticut, and Southeastern Massachusetts and provides for goods and services for a population of over a million people. In recent years, the federal government reaffirmed its commitment to Rhode Island’s maritime industries by carrying out a huge millions of dollars dredging project in the Providence River.

As it is so important for today’s economy, the federal government of Rhode Island need to take actions immediately to protect the Providence ports and thousands of jobs. If the sea transportation developed, thousands of multiplier jobs will be maintained; as a result, workers such as tradesmen, truck drivers, service technicians will be well-paid as blue-collar jobs in Rhode Island. Identical, government has to take actions to keep Providence working waterfront booming because it is one of the top 50 ports in the United States. Like this, zoning issues were developed spontaneous.

Zoning — often considered a nasty word in rural areas — promises to become an even more controversial issue as the Interstate 12 corridor continues to grow, according to people involved in the corridor’s development. RI government has its own plan till 2020 would be rezoned for mixed uses such as residential condominiums, marinas, hotels, retail shops, and restaurants. Even if it is a good plan and thoughtful idea, it can’t stop people from complaining, and underscores the danger of locating condos and hotel near the port, especially the people who live nearby the seaside. As a result, I believe the government will have challenge to achieve the zoning plan.

Regional Trade Agreement-ACFTA

Regional Trade Agreement is not same as Bilateral Trade Agreement and Multilateral Trade Agreement. Regional Trade Agreements among nations result in reducing trade barriers for a small group of trading partners, thus discriminating against the rest of the world. Bilateral Trade Agreements is an agreement between only two nations and Multilateral Trade Agreement requires at least three nations. WTO is the main representative of Multilateral Trade Agreements; it results in trade liberalization for all members and is usually as strong as regional agreements.

There are five main types of Regional Trade Agreement: Free Trade Area, Customs Union, Common Market, Economic Union and Monetary Union. North American Free Trade Agreement (NAFTA) is typically belong to Free Trade Area while Mercosur belongs to the Common Market. Regional trade agreements (RTAs) are proliferating recent years; Concerning RTAs types, the most common type of RTAs are free trade area agreements (FTAs), which represent 84% of total active RTAs; according to such agreements, trade barriers among members are eliminated, but each member can maintain its policies against third parties. China-Association of South East Asian Nations (ASEAN) is a Free Trade Area as well. Before China join in, ASEAN consisted of ten nations, it was established on August 8, 1967 in Bangkok, Thailand. In November 2002, China and the ASEAN signed the Framework Agreement on ASEAN-China Comprehensive Cooperation. It provides for the establishment of a FTA for Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Viet Nam, Laos, Myanmar and Cambodia. The China- Association of South East Asian Nations aims to create, by 2010, the third largest free trade area in the world after the EU and NAFTA; it also addresses not only liberalization of trade in goods and service but also investment and other aspects of deeper economic cooperation.

As far as I am concerned, I would like to see a Free Trade Agreement between the United States of America and China. There are several trade barriers between the U.S. and China such as the imports’ tariff barriers. Although the current currency is low, actually it is good for the people who study in the U.S; the low currency is not good for Chinese economic. However, Chinese inflation forces the U.S. has to ask China lower their currency. In my opinion, I hope there is a Free Trade Agreement existed between China and U.S. to lower trade barriers. I do not care it will take a long time maybe over 10 years, but I am confident of it.

Developing Nations – Really Poor?

Developing nations, also can be called as a less-developed country which is a nation with a low living standard, undeveloped industrial base, and low human developing index. The main characteristic of a developing nation is relatively low per capita GDP; relatively shorter life expectancy, lower rates of adult literacy, etc. The export goods for the developing countries are tending to focus on primary products such agricultural goods, raw materials and fuels. Developing nations’ majority of exports go to the developed countries; they never trade between developing nations themselves. Developing nations have the lower rates of adult literacy because people do not have higher level education to produce those kinds of high-tech products.

However, can we say “all developing nations with low GDP” are really poor? In my opinion, I do not think so. For me, China is still called as a developing country also because the low per capita GDP; whereas I do not believe China is a poor country. Everybody have to admit the rapid development of China. The reason why China still called a developing country is the 1.3 billion populations. In recent years, China’s rate of growth is really speediness so that the inflation became more and more serious. I have to say, China is developing fast totally because of increased plenty of exports, especially to the U.S.

According the Sugar International Market Profile in 2005, China is the 4^th sugar manufacture country, and the USA followed by. The biggest sugar manufacture country is Brazil, it products 28.13 million metric tons that year. However, China is the third consumption country of sugar and the USA keep its stable 5^th in both of the two elements. In the consumption area, India became the first and Brazil ranked 4th. As a result, the International Sugar Agreement is important. The objective of International Sugar Agreement in 1992 is to ensure enhanced international cooperation in connection with world sugar matters and related issues and also provide a forum for intergovernmental consultations on sugar and on ways to improve the world sugar economy; even to facilitate trade by collecting and providing information on the world sugar market and other sweeteners and encourage increased demand for sugar, particularly for non-traditional uses.

Personally, I do not think sugar is less important than fuel in this world; sometime it is more important. People can have no car to drive but they cannot live without sugar, no matter use it as cooking or processing it into snacks. I am a person who is crazy about snacks especially candy, lollipop. As a result, I prefer the international sugar agreement rather than those other IMF, GSP, etc.