Weekend Hits
- Lest you think that all trade disputes are between the United States and China, Washington filed a case against the Philippines last week, protesting that the Philippines’ excise tax on distilled spirits discriminate against imports. The Philippines levies a lower tax on spirits made from local products, such as sugar or palm, than it does if the same spirit is made from non-tropical products, such as wheat. The Americans argue that the differential tax rates illegally protect local spirits producers, while Manila will say – with an innocent look – that foreign spirits made from sugar or palm get the same low rate, so there is no discrimination. I expect the European Union and perhaps Japan will join the United States’ filing.
- Micronesians are trying out their muscles in Europe in what could prove a landmark case in the environmental business. A Czech power company has applied for approval to renovate an old coal-fired power plant to extend its life, but the Federated States of Micronesia has filed a motion with the Czech review body to deny the power company’s request. The Micronesian argument is that anything that will raise or extend the growth of greenhouse gasses is a danger to the very existence of some Micronesian islands.
- I was so excited about the new China-ASEAN free trade agreement that I totally missed the January 1 start of the Russia, Kazakhstan and Belarus customs union. A customs union isn’t the same as an FTA, generally requiring that its members have identical customs duty structures as well as free trade. The European Union is a customs union, and there are a few others, but I am skeptical that that the new one will work. It just seems so lopsided, it is hard to imagine that Moscow isn’t calling all the shots. I expect that Kazakhstan and Belarus will see a surge of Russian products, but that shoppers in their big neighbor won’t notice much. Kyrgyzstan and Tajikistan are said to be considering joining.
- This is for my real estate friends, who are always looking for new sources of business. Realtors in Scotland are reporting a surge in interested buyers from Georgia (no, not the one in the United States). Russia, China and India, too.
- The United States is dropping in the freedom standings. The Heritage Foundation and the Wall Street Journal have released their 2010 Index of Economic Freedom, which purports to measure things such as freedom to trade, invest, establish a business, own property and other good stuff. The winners are Hong Kong and Singapore, so one reflects that the index has nothing to do with political freedom. Still, it is disappointing that the United States has fallen to #7, reflecting tighter regulation of business during the recession backlash. Who is last on the list? Coming in at #179, drum roll, please – North Korea.
- I’m late on this, but it got so little notice that I didn’t notice it. On December 28, President Obama signed a bill that extends the life of the Generalized System of Preferences for another year. Now GSP expires December 21, 2010. So we have to get the attention of the Congress again next fall.
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on Saturday, January 23rd, 2010 at 7:57 am and is filed under Czech Republic, Economics, Pacific Islands, Trade Policy.
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