Maxwell School of Citizenship and Public Affairs

Syracuse University

Global Security & Development Program

International Trade and Economic Negotiations

IRP/PPA 715-2

Fall Term, Academic Year 2014

Wednesdays

August 27—December 11

(no class 9/17. 11/27)

6pm—8:40pm

Bennett Caplan Paul J. Fekete

Tel: (202) 486-1390 Tel: 202-686-1759

Email: Email:

International Trade and Economic Negotiation Course Outline

The purpose of the course is to explore the challenges confronting international trade and economic policy, as well as current negotiations designed to address these circumstances.

The methodology will be interdisciplinary, including political, economic, and legal considerations.

Readings for the course are available online and will be posted on Blackboard.

This is a one-semester course, with one grade given at the end of the semester. The grade will consist of two elements, each equally weighted.

1. Class Participation. Attendance, punctuality, and the quality and degree of informed class participation are considered. Please give notice if you will be unable to attend a particular class session.

2. Work Products. This part of the grade will include the preparation and delivery of two class presentations, a paper for the course and a short in-class description of the paper. There will be no final examination at the end of the course.

CLASS PRESENTATIONS

Each week students will make short presentations on trade-related institutions or WTO agreement(s) relevant to that week’s topic. Each student will be responsible for two such presentations. The assignment is designed to help students understand the practical realities of the agencies and agreements and how they are involved in international trade.

For institutions, each report should describe the regulatory functions and roles played by the assigned department, agency, or institution. This description should fall into two parts—the assigned role designated by statute, or charter, and the powers actually exercised by the office/agency in practice. Emphasis should be given to changes in role or policy in recent years, or over time, and should impart an understanding of the key challenges facing the institution. Students are encouraged to impart a sophisticated and unique understanding of the institution in their description.

For International Agreements, each report should attempt to cover the following issues: 1) What does the agreement do? 2) Why was the agreement necessary? 3) What is the importance of the agreement to the trading system? 4) What is the impact of the agreement on developed versus developing countries?

Each student should plan on delivering a presentation of no longer than 5-10 minutes. Power Point or Prezi presentations are encouraged, but not required. In addition, an outline of the presentation (no longer than 2 pages) should be prepared for distribution to the class. Students are encouraged to present their ideas in a cogent, concise manner.

POSSIBLE PAPER TOPICS

Each student in the class will be responsible for researching, writing, and presenting a paper on an international economic/trade-related issue. The completed paper will be due in class on the last day, December 11. Papers that are handed in late will be docked 1/3 of a grade letter per day, so a paper that is one day late can earn a maximum of an A-, two days late a B+, etc. . During the final class, each student will give a short formal presentation (absolutely no more that 3- minutes, with the time limit enforced) on their paper’s thesis and major findings. This should be viewed as an exercise in delivering a brief, standard speech that provides a thesis sentence and 2 or 3 main supporting points.

Approval of the paper is required from either Prof. Fekete or Prof. Caplan no later than October 15. Paper proposals should initially be presented in written form, including:

· proposed title of the paper—should be clear and descriptive.

· thesis statement—this is a discussion of the unique question your paper will answer.

· main sources—a short statement as to the major sources you will use, e.g., journals, newspaper articles, interviews, etc.

A good research proposal presumes that you have thought about your project and have already dedicated both time and effort to gathering information, reading, and organizing your thoughts. Also, please identify an international trade or economic topic that you care about—ideally, your research paper should be viewed as a semester-long effort, not something that is a "rush job," researched and written during the final weeks of the semester. There is no specific guidance about how detailed your proposal should be, but the more effort you put into your proposal, the better your paper will be. Also, the more detailed your proposal, the more we can comment and usefully provide guidance on what constitutes a good paper. The best-received papers are those that are well-thought out so as to be appropriate to the length of the exercise, offer an interesting well-focused idea or perspective and then ably prove or defend it. We will consider typographical errors in grading papers. The term paper should be double-spaced and no longer than 15 pages.

The best topics are realistic in terms of what can be effectively covered given space limitations. The following are illustrative areas. Students can develop tailored and/or narrower topics within these broad subjects:

· Alleged currency manipulation by the People’s Republic of China (PRC); are new international trade rules needed to regulate currency levels?

· Should the United States permit purchases of its companies such as Unocal and Maytag by PRC or other foreign entities: activities of CIFIUS and regulation of foreign investment in the United States

· The adoption of rules for electronic commerce in the TPP.

· Whether the Airbus is in fact in violation of the national treatment or local content obligations of the European Union.

· The relationship between international trade and peaceful relationships

· The role of states (e.g., California or Virginia) in promoting international trade, investment, and local economic development

· Countering OPEC: what is to be done?

· Convention on International Trade in Endangered Species (CITES)

· Basel Convention on Trans-Border Transportation of Hazardous Wastes

· The relationship between the U.S. budget deficit and the U.S. trade deficit

· How should the United States tax multinational enterprises?

· Prospects for the Doha Round

· Is NAFTA working?

· The technology factor in international commerce: is the United States losing its scientific and technological edge in areas such as biotechnology and nanotechnology?

· Implications of the end of textile quotas under the MFA

· Outsourcing: implications for U.S. employment

· What should be the U.S. policy on immigration?

· The case of Yahoo in China: privacy concerns, human rights, and the possible extraterritorial application and effect of U.S. laws

· The global quest for energy supplies: the case of China and Japan contesting the East China Sea for exploration purposes

· Should China be considered as a market economy for purposes of the Antidumping Law of the United States?

· Accession of Russia to the World Trade Organization

· Free trade in the Middle East

· Role of WalMart in international trade

· U.S. policy towards international commodity agreements

· WTO Dispute Resolution: is it working? For whom?

· Surfing the Internet: The Development of International Electronic Commerce and its International Regulatory Aspects

· Relationship between use of grains as food and/or fuel.

· What’s at stake with the Doha Round of multilateral trade negotiations?

· Potential impact of Free Trade Agreements with Panama, Colombia, and/or Korea

· Economic stimulus policy in China and its impact on international trade in goods, services, and capital

· The impact of the global recession on international trade

· Efficacy of economic sanctions on Iran, North Korea, Cuba

First Class—CAPLAN—August 27, 2014

Introduction: The Context of International Trade Policy

Required Reading

· WTO: Economic Underpinnings: http://www.swisslearn.org/wto/module4/e/start.htm

· Review The Impact of Tariffs on National Welfare at: http://polaris.umuc.edu/%7Epfekete/IMAN625/TariffGraph/sld001.htm

· Fare well, free trade, Economist Magazine, Dec 18th 2008 http://www.economist.com/node/12815617?story_id=12815617

· The National-Security Case for Free Trade, Wall Street Journal, October 6,2011 http://online.wsj.com/article/SB10001424052970204524604576611080749773932.html

Recommended Reading

· Taleb, Nassim Nicholas, The Black Swan: The Impact of the Highly Improbable, Random House, 2007.

· Fisher and Malloy, Chapter 1 - Introduction (PDF)

· Bergsten, C. Fred, The United States and the World Economy, Chapter 1. Institute for International Economics, 2005.

· Pearson, Charles, United States Trade Policy: A Work in Progress, Chapter 1., “An Overview”

· Prestowitz, Clyde, Three Billion New Capitalists: The Great Shift of Wealth and Power to the East, Basic Books, 2005

· Yergin, Daniel, The Commanding Heights: The Battle for the World Economy, Touchstone, 1998.

· Bhagwati, Jagdish, In Defense of Globalization, Oxford University Press, 2004.

Second Class—FEKETE—September 3,2014

The Institutional Framework for American Trade Policy

Class Presentations

STUDENT NAME
Office of the United States Trade Representative
House Ways and Means Committee
Senate Finance Committee
Department of State [Optional]

Required Reading

· Committee on Ways and Means, U.S. House of Representatives, Overview and Compilation of U.S. Trade Statutes, Part I of II., 2010 edition, 111th Congress, 2nd session, WMCP 111-6 Online at http://www.gpo.gov/fdsys/pkg/CPRT-111WPRT63130/pdf/CPRT-111WPRT63130.pdf pp.383-397.

· The Brock Group (1992) The Formulation and Implementation of U.S. Trade Policy. Washington, D.C. Online in Blackboard

Recommended Reading

· Destler, I.M, American Trade Politics, 4th Edition, Institute for International Economics, 2005, Chapters 1 through 5.

· Fisher and Malloy, Chapter III, “Regulation of International Trade: The Institutions”The International

Third Class—CAPLAN—September 10, 2014

Financial Architecture

Class Presentation

STUDENT NAME
Department of Treasury
International Monetary Fund (IMF)

Required Reading

· Exchange Rates and Trade http://www.wto.org/english/news_e/sppl_e/sppl222_e.htm (video also available)

· Exploiting Exportation: Why Foreign Exchange Rates Matter, Economic Information Newsletter, April 2010 http://research.stlouisfed.org/pageone-economics/uploads/newsletter/2010/201004.pdf

· The Big Mac index at http://www.economist.com/node/17257797?story_id=17257797

Recommended Reading

· Morris Goldstein, “The International Financial Architecture,” Chapter 12 in Bergsten, C. Fred, The United States and the World Economy

· Stiglitz, Joseph, Globalization and Its Discontents, 2002.

· Bergsten, C. Fred and Williamson, John, eds., Dollar Overvaluation and the World Economy, Institute for International Economics, 2003.

Fourth Class--CAPLAN—September 24, 201

Trade Sanctions and Export Controls

Class Presentation

STUDENT NAME
Export Import Bank
Agreement on Trade-Related Investment Measures
Agreement on Import Licensing Procedures

Required Reading

· Foreign Government Practices Act (FCPA) Online at: http://www.justice.gov/criminal/fraud/fcpa/

· “Out of Bondage: Loosening the Grip of U.S. Export Controls” & “What’s Not New on the Export Control Front” (Caplan Handouts)

Recommended Reading

· http://www.fcpaenforcement.com/explained/explained.asp

· http://www.washingtonpost.com/business/economy/us-firms-say-costly-foreign-bribe-law-lacks-clarity/2011/07/05/gIQAB50jTI_story.html

· Fisher and Malloy, Chapter XII, The Use of Trade Controls for Political Purposes

Fifth Class—CAPLAN—October 1, 2014

Competitiveness Challenge: Trade in Fairly Priced Goods

Class Presentation

STUDENT NAME
United States International Trade Commission
Homeland Security/Customs and Border Protection
Agreement on Safeguards
Agreement on Rules of Origin

Required Reading

· Fisher and Malloy, Chapter IV, “Relief from Fairly Priced Foreign Competition”

· “Exporter’s Guide to Trade Laws” & “The Harmonized System” (Caplan handouts)

Recommended Reading

· Gilboy, George, “The Myth Behind China’s Miracle,” Foreign Affairs, July/August 2004

· Pearson, Charles, Chapter 3, “Flirting with Managed Trade”

· Lardy, Nicholas, Integrating China into the Global Economy, Brookings, 2002 (1604 .L275 2002)

· Lardy, Nicholas, China’s Unfinished Economic Revolution, Brookings, 1998.

· Lardy, Nicholas, “China: The Great New Economic Challenge?” Chapter 4 in Bergsten, C. Fred, The United States and the World Economy.

· Navarro, Peter, The Coming China Wars: Where They Will Be Fought and How They Will Be Won, Financial Times/Prentice Hall, 2006.

· Navarro, Peter, China Price Project (Click to open)

· Fishman, Ted C., China, Inc.: How the Rise of the Next Superpower

· Hufbauer, Gary C., Wong, Y., and Sheth, K., U.S.-China Trade Disputes: Rising Tide, Rising Stakes, Institute for International Economics, 2006.

· Challenges America and the World, Scribner, 2005.

· Groombridge, Mark A., and Barfield, Claude E., Tiger by the Tail: China and the World Trade Organization, The AEI Press, 1999.

· Section 201 of the Trade Act of 1974, as amended, Bhala, pp. 1304-1325.

· Rogers, Jim, A Bull in China: Investing Profitably in the World's Greatest Market. Random House, 2007.

· Zeng, Ming and Williamson, Peter J., Dragons at Your Door: How Chinese Cost Innovation Is Disrupting Global Competition. Harvard Business School, 2007.

Sixth Class—CAPLAN—October 8, 2014

The Challenge of Competing Against Unfairly Priced Goods

Class Presentation

STUDENT NAME
Department of Commerce/International Trade Administration
US Court of International Trade
Agreement on Implementation of Article VI of GATT 1994 (Antidumping Code)

Required Reading

· B. Bhattarcharyya, The Indian Shrimp Industry Organizes to Fight the Threat of Anti-Dumping Duties, - (click to open).

· “Antitrust and Trade Policy” (Caplan Handout)

Recommended Reading

· Fisher and Malloy, Chapter V, Antidumping Duties

· Destler, Chapter 6, “Changing the Rules: The Rise of Administrative Trade Remedies”

· Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (“Antidumping” Agreement, Bhala, pp. 392-419.

· Irwin, Douglas, Free Trade Under Fire, Princeton University Press, 2005.

Seventh Class —FEKETE—October 15 2014

Career Evening

GSDP typically schedules a career dinner about half-way through the semester. We will invite several colleagues who work in the field of international trade to come and speak informally with students about their careers, interests, background, and to provide advice for those just starting out.