CFR Presents

Asia Unbound

CFR experts give their take on the cutting-edge issues emerging in Asia today.

Posts by Category

Showing posts for "Trade"

Is Free Trade Back in Gear After the Bali WTO Meeting?

by Joshua Kurlantzick
A man walks past a logo of the World Trade Organization (WTO) ahead of the ninth WTO Ministerial Conference in Nusa Dua, on the Indonesian resort island of Bali on December 2, 2013. (Edgar Su/Courtesy Reuters) A man walks past a logo of the World Trade Organization (WTO) ahead of the ninth WTO Ministerial Conference in Nusa Dua, on the Indonesian resort island of Bali on December 2, 2013. (Edgar Su/Courtesy Reuters)

This month’s conclusion of the Bali World Trade Organization meetings was hailed by many business leaders and politicians as a major step forward for multilateral free trade, and an important step toward resuscitating the current round of WTO talks. But in reality, the results of Bali were minimal—officials at the meeting failed to reach any consensus on most of the substance on the table for the next WTO round, instead just deferring any substantial items on the WTO agenda. Read more »

The Economic Costs of North Korean Nuclear Development

by Scott A. Snyder
Kim Jong-un, here at the May 11 Factory, is taking a greater interest in economic reforms that may impact the international trade prospects for North Korea. Kim Jong-un, here at the May 11 Factory, is taking a greater interest in economic reforms that may impact the international trade prospects for North Korea (KCNA/Courtesy Reuters).

International sanctions have thus far failed to convince North Korean leadership that they cannot survive as a nuclear weapons state.  With its policy of simultaneously pursuing economic and nuclear development, North Korean leaders clearly assume they can manage the economic costs resulting from nuclear development. But the costs of such a policy are staggering compared to the economic benefits North Korea might enjoy without nuclear weapons. Comparing the estimated costs of the nuclear program to economic growth with the benefits of becoming a normal economy integrated with its neighbors reveals the steep price of the byungjin policy. Read more »

Why Obama Shouldn’t Cancel his Asia Trip

by Joshua Kurlantzick
U.S. President Barack Obama speaks before a Luau for APEC leaders after dinner during the Asia-Pacific Economic Cooperation (APEC) Summit in Honolulu, Hawaii on November 12, 2011. (Larry Downing/Courtesy Reuters) U.S. President Barack Obama speaks before a Luau for APEC leaders after dinner during the Asia-Pacific Economic Cooperation (APEC) Summit in Honolulu, Hawaii on November 12, 2011. (Larry Downing/Courtesy Reuters)

With the government shut down, the White House announced yesterday that the President’s upcoming trip to Asia, scheduled to begin October 6, will be cut short. Plans to visit Malaysia and the Philippines have been shelved for now, though Obama will still attend the annual Asia Pacific Economic Cooperation (APEC) meeting of leaders in Bali, Indonesia. Read more »

The Futility of Obama’s Southeast Asia Trip?

by Joshua Kurlantzick
U.S. President Barack Obama speaks as Brunei's Sultan and Prime Minister Hassanal Bolkiah listens during the Trans-Pacific Partnership Leaders meeting at the Hale Koa Hotel during the APEC Summit in Honolulu, Hawaii, on November 12, 2011. (Larry Downing/Courtesy Reuters) U.S. President Barack Obama speaks as Brunei's Sultan and Prime Minister Hassanal Bolkiah listens during the Trans-Pacific Partnership Leaders meeting at the Hale Koa Hotel during the APEC Summit in Honolulu, Hawaii, on November 12, 2011. (Larry Downing/Courtesy Reuters)

Later this week, President Obama will embark on a six-day trip to Southeast Asia, visiting Indonesia, the Philippines, Malaysia, and Brunei, to attend the East Asia Summit, the annual ASEAN leaders summit, and the Asia Pacific Economic Cooperation meeting, along with a global entrepreneurs’ meeting in Malaysia. It might seem surprising that the president would leave the United States at such a critical time in federal budget negotiations, but these are the biggest leaders’ meetings in Asia, and since 2009, the White House has committed to increasing the presence of the president and other top Cabinet officials in Asia. Read more »

Abe’s Diplomatic Agenda

by Sheila A. Smith
Visiting Japanese Prime Minister Shinzo Abe inspects the honour guard during the state welcoming ceremony in Putrajaya, outside Kuala Lumpur July 25, 2013 Visiting Japanese prime minister Shinzo Abe inspects the honor guard during the state welcoming ceremony in Putrajaya, outside Kuala Lumpur July 25, 2013 (Bazuki Muhammad/Courtesy Reuters).

Now that the Upper House election is over, and Prime Minister Shinzo Abe’s Liberal Democratic Party-led coalition has control over both houses in parliament, many expect Abe to begin addressing the difficult domestic policy issues on his agenda. In an article I published yesterday for the Georgetown Journal of International Affairs, I point out that Abe’s foreign policy choices will also greatly affect Japan’s future, particularly when it comes to how he manages three critical relationships: China, South Korea, and the United States. The first two will require Abe to address issues of deep historical distrust, while the last will test Abe’s ability to move forward long-overdue conversations on Japan-U.S. military cooperation. Read more »

Sean Connell: Lessons from KORUS for Japan and TPP

by Guest Blogger for Sheila A. Smith
U.S. president Barack Obama and South Korean president Lee Myung-bak tour the General Motors Orion assembly plant in Detroit, Michigan—which produces the Sonic sub-compact car, a joint venture with GM Korea—following congressional approval of the U.S.-Korea Free Trade Agreement U.S. president Barack Obama and South Korean president Lee Myung-bak tour the General Motors Orion assembly plant in Detroit, Michigan—which produces the Sonic sub-compact car, a joint venture with GM Korea—following congressional approval of the U.S.-Korea Free Trade Agreement October 14, 2011 (Kevin Lamarque/Courtesy Reuters).

The agreement by the eleven Trans-Pacific Partnership (TPP) member nations on April 22 to include Japan in their ongoing negotiations was a significant breakthrough, both for advancing the high-standard “21st century” regional trade agreement envisioned in TPP and for Japan’s quest to revitalize its economy. With Japan now formally participating in the negotiating rounds, TPP covers 40 percent of global GDP, increasing its potential to shape the Asia-Pacific regional economic environment and global trade rules. Read more »

As the G8 Meets, Free Trade is in Chaos

by Joshua Kurlantzick
Britain's Prime Minister David Cameron welcomes U.S. President Barack Obama on his arrival to the Lough Erne golf resort where the G8 summit is taking place in Enniskillen, Northern Ireland on June 17, 2013. (Yves Herman/Courtesy Reuters) Britain's Prime Minister David Cameron welcomes U.S. President Barack Obama on his arrival to the Lough Erne golf resort where the G8 summit is taking place in Enniskillen, Northern Ireland on June 17, 2013. (Yves Herman/Courtesy Reuters)

At the start of his second term in January, President Barack Obama announced a massive platform of new policy proposals. Since then, many of his ideas – on gun control, a solution to America’s debt crisis, and other issues – have been abandoned, leaving the president’s supporters on the left almost apoplectic. Yet even as he has backed off from fights on other issues, President Obama and his administration have continued to push for many new trade deals, such as the Trans-Pacific Partnership (TPP), that encompasses much of Asia, the fastest-growing region in the world. The White House also has proposed the Transatlantic Trade and Investment Partnership (TATIP), a free trade deal with Europe. Read more »

Friday Asia Update: Top Five Stories for the Week of May 31, 2013

by Guest Blogger for Elizabeth C. Economy
Meat products of Shuanghui (Shineway) Group are seen on display on a shelf at a supermarket in Wuhan, Hubei province on May 31, 2013. Meat products of Shuanghui (Shineway) Group are seen on display on a shelf at a supermarket in Wuhan, Hubei province on May 31, 2013. (Stringer/Courtesy Reuters)

Sharone Tobias and Will Piekos look at the top five stories in Asia this week.

1. Chinese buy into America’s pork market. Chinese meat giant Shuanghui Group announced that it plans to acquire Smithfield Foods, the world’s largest pork producer, for $4.7 billion. Both companies would benefit from the deal: Shuanghui would gain a steady and safe supply of pork while Smithfield would gain entry into the expansive Chinese market. If approved—the deal still needs to face the Committee on Foreign Investment in the United States (CFIUS) process, which assesses national security risks—it would be the largest Chinese acquisition of an American company to date. Read more »

Friday Asia Update: Top Five Stories for the Week of May 17, 2013

by Guest Blogger for Elizabeth C. Economy
Former police officer Abner Afuang burns a replica of Taiwan's national flag as he protests against the mistreatment of Filipinos working overseas, along a main street of Manila on May 17, 2013. (Courtesy Reuters/Romeo Ranoco) Former police officer Abner Afuang burns a replica of Taiwan's national flag as he protests against the mistreatment of Filipinos working overseas, along a main street of Manila on May 17, 2013. (Courtesy Reuters/Romeo Ranoco)

Sharone Tobias and Will Piekos look at the top five stories in Asia this week.

1. Tensions between Taiwan, Philippines escalate. The Philippine navy opened fire on a Taiwanese fishing vessel last week in disputed waters, killing one man on board and igniting a new round of tensions in the South China Sea. Though Philippine officials (including the president) have expressed their sympathies, Taiwan has rejected these apologies as lacking “sincerity.”  In response, Taipei recalled its envoy to the Philippines, announced a hiring freeze of Filipino workers, and held military drills. Yesterday, the Philippine envoy to Taiwan advised thousands of Filipino workers not to leave their homes. Read more »

Post-Summit Decisions for Prime Minister Abe

by Sheila A. Smith
Japan's Prime Minister Shinzo Abe participates in a media conference at a Washington hotel, February 22, 2013 Japan's Prime Minister Shinzo Abe participates in a media conference at a Washington hotel during his visit to meet with President Barack Obama February 22, 2013 (Jason Reed/Courtesy Reuters).

Japan’s prime minister, Shinzo Abe, returned to Tokyo this weekend after his first summit meeting in Washington with President Barack Obama. Post-summit, Abe faces two important economic decisions. The first is his nomination for the next governor of the Bank of Japan (BOJ). The second is whether Japan’s prime minister will urge his party onwards to participation in the Trans-Pacific Partnership (TPP). To succeed, Abe now has to confront some political hurdles at home. Read more »