U.S. Business Regulation & Global Trade

1. U.S. Business Regulation & Global Trade By Laura Castillo

2. Executive Summary The financial crisis of 2007-2009 revealed that monetary policy had to include the goal of financial stability and supervision over institutions. It also showed that it was necessary to introduce new regulations and resolution mechanisms to limit moral hazard and the collective cost of support measures. Several reforms have been undertaken in the area of business regulation and trade. This presentation discusses some of these reforms and highlights the competitiveness of the U.S. on the global scale. 

3. Overview • Legislation: Constitutional/Trade Laws • Major Problems: New FTAs • Issue: Global Competitiveness • Policy Proposal: Current U.S Regulations on Businesses

4. Legislation U.S. Constitution: Article I, Section 8: The Congress shall have Power to lay and collect Taxes, Duties, Imposts, Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States, but all Duties, Imposts and Excises shall be uniform throught the United States.

5. Legislation: Trade • U.S. Trade Laws • 19 U.S.C. – Customs Duties • 22 U.S.C. – Foreign Relations and Intercourse • 15 U.S.C. , Chapter 4 – China Trade • 18 U.S.C., Chapter 27 – Customs Crimes • 15 U.S.C. §§ 61-66 – Promotion of Export Trade by the FTC • 15 U.S.C. § 46(h) – Investigation of Foreign Trade Conditions by the FTC • 12 U.S.C., Chapter 40 – International Bank Lending • 12 U.S.C., Chapter 32 – Foreign Banks in Domestic Markets • 12 U.S.C., Chapter 6A – Export/Import Bank of the United States • 12 U.S.C., Chapter 6 – Foreign Banking • International Trade Laws • WTO Legal Texts • Pre-WTO Legal Texts • United Nations Convention on Contracts for the International Sale of Goods (1980) • NAFTA Secretariat • Trade Law Centre for Southern Africa • 19 CFR Parts 351 and 354 – Antidumping and Countervailing Proceedings

6. “Our job is to do everything we can to ensure that businesses can take root and folks can find good jobs and America is leading the global competition that will determine our success in the 21st century.” – President Barack Obama

7. Major Problems • Trans Pacific Partnership (TPP) • Transtlantic Trade and Investment Partnership (TTIP) • Competitiveness of U.S.-based companies in decline • Capital Investment down

8. Issue: Global Competitiveness • Slowed Productivity Growth • Technical Change Down

9. Global Competitiveness Index:Capacity for Innovation

10. Global Competitiveness 2013-2014 Rankings

11. Policy Proposal • Economic Structural Reforms • Results Based Approach • Improvements in Innovation • Should this include State Business Regulation? (American Jobs Act) • Increase Global Exports • Other Areas to Include or not include?

13. Questions?

14. LinksThe first link gave inspiration to the Policy issue and Proposal. The remaining links provide background on US Business, Regulation, Global Trade, and Global Competitiveness. • http://mercatus.org/publication/regulation-and-international-competitiveness-us-economy • http://www.oecd.org • http://www.weforum.org/issues/competitiveness-0/gci2012-data-platform/ • http://www.ustr.gov/trade-agreements/free-trade-agreements • http://trade.gov/index.asp • http://www.census.gov/foreign-trade/regulations/ • http://www.whitehouse.gov/economy/business#sub5-tab