Advanced International Business

He saif that an economic modell should not be based or rely on protecionsm - but on attractiveness of the home products. He nored that there have been similar concerns when Japanes entered the market in the 1980s or als South korea in the 90s "and yet we held our ground"

10%

Up to 35.3% (China produces 60% of all EVs) - And the EU will implement this tariffs only on chinese car companies.

Becuase China supported the EV production with state subsidies ---> cheaper production

• It is the only global international organization dealig with the rules of trade between nations.
• 164 members and representing 98% of the world trade
• Secretariat is located in Geneva and has a budget of 197 mio with 623 staffmembers. Languages are English, French, Spanish

• Support the WTO bodies
• Provide technical assistance to developing-country members
• Monitor and analyze world trade
• Advise Governments of countries wishing to become a member
• Provide information to the public & media

• Agreements where signed in April 1994 (After 7 1/2 years of negotiating) / established 1. January1995
• WTO did replace GATT (General Agreemnet of Tariffs and Trade) , GATS (eEneral Agreement of Trade and Service), TRIPS (Trade-Related Aspects of Intellectual Property Rights)

Top Level: Ministerial Conference --> Top level decision making body (Meets usually every 2 year)

Below: General Council (meets several times a year in Geneva HQ) --> Also meets as Trade Policy Review Body and Dispute Settlement Body

Director-General of the --> Dr. Ngozi Okonjo-Iweala (Nigeria)

• Developed country (CH)
• Developing country (China, HKG, Brunai, Qatar, Singapore, UAE, Mexico, Souh Korea, Turkey) 3/4 of all members
• LDCs - Least-developed countries (Sudan)

ATTN: There no offical WTO definitons, member can decide on their status

Developed countries tend to have lower tariffs then Developing countries/LCD's

• Fully independent
• Not part of the UN Family
• Not a "specialiced agency of the UN"

• Government
• Permanent Population
• Defined territory
• capacity to enter into relations with other states

EU imposed Countervailing duties (CVSs) upt to 35.3%, additional to the EUs 10% tariff on imported car.

These tariffs are intended because Chinas EV Prodction have been artificially cheapened by chinas state subsidies. To protect the domestic markets in EU, this high tariffs have been implemented.

Mandate:

• Reduction of tariff and non-tariff barriers (Tariffs went down from 40% to 4%)
• Elimination of discriminatory treatment

Rules:

MFN: Probihition to treat states unequally

NT: Treat goods and services equal, once they crossed the border

1. Implementation of the WTO agreements
2. Negotiation of new agreements
3. Settlement of disputes
4. Trade policy review
5. Cooperation with other organisations
6. Technical assistance to developing countries

The members

Bound tariffs: (on avereage 3times higher than applied tariffs) The maximum tariffs that a country is legally allowed to apply under international trade agreements (member WTO)

Applied tariff rate: These are the actual tariffs that a country applies to imports. 

Avarage bound tariff rates are higher for less developed countries. That means LDC do not need to open their economies to the same degree as developed countries need to. (To protect local industries / dependency on foreign technologies)

1. Governmnets inform WTO/fellow members aboout policies/laws trough notifications
2. WTO conducts regular reviews - WTO Trade policiy reviews:

• Surveillance of national trade policies with TPRM (Trade Policy Review Mechanism)
• Review Cycle: Every 3, 5 oder 7 years. Depends on the size of economy. larger economies reviewed more frequently

Trade restrictions or regulations that do not take the form of tariffs but still affect international trade.

A-C = Technical measures (Regulations)

A: Ensuring food safety, preventing the dissemination of deseas or pets

B: Measures relating to product characteristics such as technical specifications and quality requierements. (f.e Technical standards for electric devices)

(Fleisch frei von bestimmten Krankheitserregern,  Sicherheits- und Umweltstandards für elektrische Produkte)

D-O = Non Technical Measures (Rules)

f.e import quotas on specific goods

(maximale Menge die ein land importieren darf / Kein Export bestimmter Rohstoffe, um die eigene Versorgung zu sichern)

P = Export Related Measures: Export Taxes, export quotas (limit on quantity that can be exported), export probibitions (Verbote)

Conformité Européenne, indicates that the product complies with the health, safety, and environmental protection standards required by the European Union (EU)

• By lack of transparency
• By Discriminatory treatment (MFN, NT)
• When more restrictive than necessary

MFN = Most Favored Nation: A trade principle under the WTO that ensures a country provides the same tariff and trade benefits to all WTO members equally, without discrimination.  Every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners, whether rich or poor, weak or strong. It is valid for all three pillars of the WTO (GATT, GATS, TRIPS)

NT: National Treatment: A trade principle requiring countries to treat imported goods the same as domestic goods once they have entered the market, preventing discriminatory practices.

GTA: Global tade alert (independent initiative that monitors trade measures worldwide)

--> Makes trade practices more transparent, monitor protectionist measures and maintain fair trade

Only in agruculture mainly vegies, dairy, meat

f.e Japan imposes a tariff of over 200% on rice imports to safeguard its domestic rice industry.

0%

Football: 9.9%

Mobil Phones: 4.8%

Umbrella: 16.1%

Chocolate: 18.6%

TRQs allowing the import of a pre-determined quantity of a product at a lower import duty rate (in-quota duty).

--> Zollkontingente, die die Einfuhr einer vorab festgelegten Menge eines Produkts zu einem niedrigeren Einfuhrzollsatz ermöglichen.

TRQs are related to agricultural products manged through 2 different methodes:

• First come first served
• Agricultural licences (import or export)

If a certain amount is reached, the tariffs arise

Reciprocital trade agreements between 2 or more partners including free trade agreements (FTAs) and customs unions

F.e. NAFTA, Baltic Free Trade Area etc.

Preferential treatment to member countries, violating the MFN (Most favored nation) principle

Preferential Trade Agreement (PTA):

• A trade agreement between countries that reduces selected tariffs and trade barriers. Gives access to certain products from certain countries
• Developed countries grant preferential tariffs to imports from developing countries. Non members do not share the benefits (discriminatory)

Examples: SAFTA (South Asian Free Trade Agreement), Mercosur-India PTA, EU-Eastern Partnership

FTA: (Free Trade Area): Most common of RTas. Members remmove or reduce tariff/non-tariff barriers. Allowed to maintain different MFNs barriers on non-members. (NAFTA, TFTA, CPTPP, RECP, TTIP)

Customs Union:  Freetrade area & adoption of a common set of policies towards imports from other countries (EU - Turkey, Switzerland - Lichtenstein, MERCOSUR)

Common Market: FTA+CU+free movement of labour and capital within the partnership (CARICOM, CEMESA &MERCOSUR)

Economic Union: FTA+CU+CM+adoption of a common currency and/or harmonization of monetary, fiscal & social policies (EU)

1. Building confidence and avoiding conflicts (e.g. EU)
2. Security of reginal partners (e.g. SADCC reduction of dependency on SA during Apartheid)
3. Enhance bargaining power (might give LDCs a stronger voice)
4. Higher attractivness to potential investors
5. Faciliation of negotiations and implementing agreements: Its easier to negotiate with few parteners than globally

1. Regionalism over multilateralism: Protection of sectors that wold not survive in global competition (f.e EU tariff for acriculture products)
2. Regionalism provides opportunities for deeper integration (WTO Plus)
3. Larger home markets and increased FDI

Both parties had a big interest. Fixed after 8 rounds of negotiation

Only CH and Island

Japan

Trans-Pacific- Partnership founded by 12 countries but the US left under Trump in 2017 so they became the TPP 11 and later on the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) in 2018.

The CPTPP Members: Canada, Mexico, Peru, Chile, Vietnam, Malysia, Singapore, Japan, Brunai, Australia, NZ

TPP without USA --> CPTPP / China is actively considering joining CPTPP.

Existing members can squeeze new members till they fit the criteria

.

Adhering to laws, rule & regulations (internal & external)

Primarly by a country's national laws (also depends on industry, size of the company)

Compliance applies universally across the entire company ensuring ethical and lawful business.

1. Laws (created by societies/goveremnts, apply universally)
2. Regulations (offical rules established by governing auhorities. They do not apply universally)
3. Contracts (legally binding)
4. Self-regulations (formal, voluntary rules, refers to practice organizations ensuring compliance with rules & standards without external enforcement, eg: Code of conduct)
5. Governance rules (informal & voluntary rules, framework for decision making-->clearifys who is having the authority to make decisions, f.e. policies, guidelines, norms)
6. Soft laws (informal, voluntary rules, guidelines which are not legally binding, often used in international contexts, f.e principles)

1. UNGC
2. SDGs
3. OECD

Bribery: Is a form of corruption.  An Act of offering, promising, giving something of value as motivation for a illegal / unethical actions 

Active Bribery: involves offering, promising or giving. / Passive Bribery: requesting, agreeing  to receive, or accepting a bribe.

Corruption: Includes various unethical practices such as:

• Embezzlement (Unterschlagung): theft/missappropriation of funds entrusted to someones care
• Fraud (Betrug): wrongful deception intended to result in financial/personal gain
• Nepotism (Vetterliwirtschaft): favoring relatives/friends, espescially by giving them jobs
• Collusion (Geheime Absprachen): secret cooperaton between parties for deceitful/illegal purposes
• Abuse of power: ecploiting one's position of authority for personal advatage

Switzerland:

• Swiss criminal code (SCC)
• Federal Act on Prevention of Money Laundering and Terrorist Financing (AML Act)
• Feder Act on the Disclosure of Information on Foreign Public Affairs (FCPA)

Europe:

• EU Anti-Corruption Directive
• EU Whistleblower Protection Directive
• UK Bribery Act (2010)

International frameworks

• US Foreign Corrupt Practices Act (FCPA; 1977)
• OECD Anti Bribery Convention
• United Nations Convention Againgst Corruption (UNCAC)