finance | banking | taxes
While financial reforms are ongoing in the EU and many other countries, little attention is paid to free trade agreements that continue to liberalise financial services as well as restrict regulatory freedom (‘policy space’) and controls on capital movements.
A free trade pact between the EU, Colombia and Peru will increase the risk of illegal money flows and capital flight, said a report Wednesday from a group of Members of the European Parliament.
Thailand’s negotiations with the US for the opening of the goods and services market under the Trans-Pacific Strategic Economic Partnership Agreement (TPP) could hamper the Bank of Thailand’s regulations on capital flows and financial services, a central bank economist says.
Amid concerns over whether the Trans-Pacific Partnership (TPP) will benefit Thailand or not, state-owned Krung Thai Bank (KTB) is looking forward to greater business opportunities with American banks.
The EU-Singapore FTA will provide a basic template for the EU FTAs with other ASEAN governments, although perhaps not an exact duplicate, due to agriculture being a less sensitive issue for trade between the EU and Singapore.
Bahamas’ Minister of Financial Services is this week aiming to encourage three of the largest Swiss private banks to domicile “new business units” in the Bahamas, under the auspices of a new deal under the EU EPA.
The government has decided to exclude financial services from the SAARC agreement on trade in services, following strong objection from the Reserve Bank of India, or RBI. The central bank has argued that India has already allowed access to foreign banks under the World Trade Organization agreement.
The government proposes to levy a heavy retrospective tax on some international mergers that would allow it to tax any overseas merger dating back to 1962 when an underlying Indian asset was transferred.
In advance of Trans-Pacific trade talks, over 100 economists are sending a letter today urging negotiators to promote global financial stability by allowing the use of capital controls.
The Association of Southeast Asian Nations is beefing up various frameworks for cooperation and development within the region and with its trading partners, in preparation for regional economic integration by 2015.
US negotiators are hardliners against capital controls in current Trans-Pacific trade talks with eight other countries.
For over four years now, India has been negotiating a Free Trade Agreement (FTA) with the European Union (EU) - the largest trade and investment deal the country has ever embarked on. As much as New Delhi expects to lure the European market and investments closer to India, the actual consequences for the country’s economy could be dire: the open up of public procurement, the deregulation of the banking, automobile, retail and mining industries plus the adverse impact the deal will have in small-scale farmers make of this FTA a counter-productive undertaking.
The Union of South American Nations resolved today to put in place a six-point Plan of Action to protect the region from the international crisis that is shaking Europe and the United States.
From World War II until NAFTA, US trading policies were based on geopolitical needs and what would increase prosperity for America. Since NAFTA, however, the mantra of free trade has been warped to generate rights for international capital and nothing else.
Officially, the mission of Pranab Mukherjee’s just-concluded trip was to attend the second annual meeting of the India-US Financial and Economic Partnership. The finance minister brought with him perhaps the most star-studded Indian economic team to visit Washington for a bilateral event.
The European Union has sought concessions for its banks if they are asked to migrate to the wholly-owned subsidiary model proposed by the Reserve Bank of India (RBI).
Kevin Gallagher demonstrates that the "reworked" US-Colombia agreement has not been reworked to reflect the need to ensure that nations have the ability to prevent and mitigate financial crises.
EU is pushing India to relax controls on capital flows and conditions on investment, such as export obligation and local content requirement.
In contrast with the current wide-ranging financial reform agenda in the European Union, the EU continues to liberalise a wide range of risky and non-risky financial services in the General Agreement on Trade in Services and other Free Trade Agreements as if the financial crisis never happened. This SOMO briefing paper gives specific examples on how new EU regulations are in contrast with the pre-crisis model that is still being applied in the GATS negotiations, the Cariforum-EU Economic Partnership Agreement and the EU-South Korea FTA.
In a letter delivered January 31, more than 250 economists urged the Obama administration to reform US trade rules that restrict the use of capital controls.