Asymmetric trade barriers and CO2 emissions in carbon-intensive industry

Since large carbon emissions are transferred through international trade, it is vital to explore the role country-specific trade policy has on carbon-intensive industries. The present study contributes to a deeper understanding of the connection between trade and environment in the literature, especially the impacts of trade barriers on carbon emissions. This topic has received little attention despite the importance of trade barriers to climate change and carbon emissions. Thus, we investigate the asymmetric trade barriers in carbon-intensive industries across different countries and describe the facts and motivations of these trade barriers in carbon-intensive industries. We list some political and trade explanations for the existence of trade barriers and empirically test the impacts of interest groups on trade barriers by the IV-2SLS method. Further, we have observed that certain highly developed countries, including Belgium, Switzerland, and Japan, are providing a notable implicit subsidy valued at over 200 USD per ton for carbon-intensive imported products. Our work carries essential implications for understanding how the manipulation of trade barriers could cause impacts on the environment.

Building capacity for World Trade Organization dispute settlement: piloting polarity mapping for trade relations

Trade disputes have been on the rise in recent decades. Resolving these disputes can be challenging, even when relying on the World Trade Organization (WTO) formal dispute settlement system. Polarity mapping, a visual framework for understanding the challenges of organisational collaboration, could help to provide structure to these negotiations. This paper describes how polarity mapping was adapted to support or mitigate trade disputes related to the trade of animals or animal products. A three-step process allowed stakeholders to: identify the conditions affecting a trade relationship, use polarity mapping to identify priorities and challenges for continued trade relationships, and outline an action plan to support these relationships in the event of a disease outbreak. The tool was then tested, using an exploratory case study methodology. Polarity mapping was found to be both useful and practical for investigating how to improve trade relationships. The case-study participants were able to identify strategies, choices and decisions that moved them towards a more sustainable trade relationship. Further testing and iterative development of the tool in a current, real-life trade dispute would be beneficial. The hope is that, in the future, a simple tool such as polarity mapping could be used either to plan pre-emptively for trade challenges and thereby prevent disputes, or to provide a method for consultation within the formal WTO dispute settlement process.

Fire lines as fault lines: increased trade barriers during the COVID-19 pandemic further shatter the global food system

In this opinion piece, we highlight that trade barriers established during COVID-19 as “fire lines” to prevent cross-border transmission of the pandemic could become “fault lines” that demolish the global food system. We review restrictions on both international agricultural exports and imports, especially unilateral border controls such as import refusals and alerts, in previous epidemics and arising with two novel features amid COVID-19. Institutional causes to pervasive trade barriers in epidemics that are embedded in the WHO-WTO coordination scheme have been discussed. In the meantime, discussions on potential economic outcomes and policy recommendations have been provided.

Openness and productivity of the Swiss economy

This paper analyzes the connection between openness and economic performance in Switzerland. Considering different dimensions of openness, we show that the Swiss economy is classified as relatively open. Nevertheless, there still is potential to further increase international integration, particularly through deregulation in the services sector. We also show that for some branches in the Swiss manufacturing sector, increases in international trade are associated with higher productivity in the long run. With regard to financial openness, we show that in the aftermath of the financial crisis, Switzerland mainly suffered from capital retrenchment. Foreign capital inflows were of minor importance. Short-run costs due to high volatility of capital flows might therefore be lower than widely perceived.