The U.S. trade deficit in manufactures soared by 16% in 2015, resulting in a loss of 600,000 American manufacturing jobs. Sixty percent of the global deficit was with China, with U.S. manufactured imports from China 5.8 times larger than U.S. exports to China.
The rules-based multilateral trade and financial system created at Bretton Woods in 1944 has been crumbling over the past decade. The WTO trading system to reduce trade barriers on a reciprocal, most-favored-nation basis has been replaced by a spreading network of bilateral and regional preferential trade agreements. And far more threatening, the IMF financial system, centered on convertible, non-manipulated exchange rates, has been undermined by rampant exchange rate mercantilism, principally by China and other Asian nations.
In the first quarter, the U.S. trade deficit in manufactures rose by 4%, or $7 billion, compared with 2015. This is a big improvement from the 14% increase for calendar 2015, but still resulted in a trade-related loss of 50,000 American manufacturing jobs.
Global Economy, Competitiveness, Government Policy, Economic Environment, Regional Economic Integration, Money & Finance, Currency
This report surveys four types of proposals aimed at solving the EMU’s various crises. Only one of the four stands a realistic chance of being implemented in the next decade. What the EMU needs is an immediate implementation of a set of minimal conditions for the survival of the common currency. The paper delves into individual policy planks and assesses their chances of adoption in the next decade. The common currency faces long odds of survival beyond the next few years.
Global Economy, Competitiveness, Foreign Trade, Imports & Exports
This is my final MAPI Foundation report, on U.S. and Chinese trade in manufactures during the first half of 2016, as I am retiring from MAPI at the end of August. The report also provides a breakout of U.S. bilateral trade with China and Mexico, which has become a contentious electoral issue.
Manufactured goods are ubiquitous at home, in transit, and at work, but the narrow definition of manufacturing industries in national statistics implies that the sector is of only minor importance to economic activity. The traditional finding is that manufacturers’ proportion of gross domestic product (GDP) is only about 11% and manufacturing’s share of economy-wide full-time equivalent employment is just 9%. Since this excludes manufacturing activities such as research and development, corporate management, logistics operations, and advertising and branding, those figures are merely the tip of the iceberg.
Not finding what you're looking for?
Some content is restricted to specific MAPI councils; ensure you are logged in. If you’re having trouble finding or accessing content, contact us.