Derailing the EU-Japan trade talks?

As the EU member states now take stock of the EU-Japan trade talks ahead of a coming summit, Patrick Messerlin looks at one of its most difficult issues: Government procurement and the railway sector. The Japanese railway sector is organized in a radically different manner than in the EU: the three major Japanese passenger rail companies are totally privatized, and not operating under government licenses like in Europe. Still, the EU rail equipment industry argues that the Japanese companies should be covered by government procurement rules, which would set a dangerous precedence and open for similar claims against Europe's unbundled former monopolies, e.g. telecom operators. The FTA negotiations are complicated - but if they are done right, they also offer more opportunities for both Japanese and EU railway companies in a global world.

In focus

Investing in Obesity Treatment would Reduce Healthcare Spending

The obesity rate is growing fast – in Europe and around the world – and no government has effective policies for preventing obesity to increase healthcare expenditures. Yet while governments have been slow to react, medical scientists have now a good view of “what works” and “what doesn’t work” in policies to reduce obesity. A new study by ECIPE economists estimates that European countries stand to make huge savings in future healthcare expenditures if they use effective lifestyle weight management programmes to treat obesity today. If governments invest in smart obesity treatment, the UK and Spain could reduce healthcare expenditures related to obesity in 2030 by 10 and 12 percent. Germany could save around 6 percent while Sweden could “save” as much as 55 percent of future healthcare expenditures related to obesity.

How Can Europe Respond to an Authoritarian Russia?

Russia’s invasion of Crimea has sent shock waves through the international community but is not surprising in light of the Kremlin’s authoritarian and imperialistic ideology. As was shown in two papers by Fredrik Erixon and Iana Dreyer, Russia has been building military and economic statecraft on the back of its energy riches – and the EU has been far too weak to diminish its economic dependency on Russia. Broad economic sanctions by the EU is therefore highly unlikely, even if Russia’s investment in and export to Europe is so big that sanctions could put Russia Inc out of business. As Hosuk Lee-Makiyama has argued, economic sanctions usually do not work. And what it is important now for the EU, in addition to shaping a response to the Crimean occupation, is to reshape its approach to Russia with the effect of cutting its dependency on an authoritarian regime.

Immigration and Labour-market Integration

While the debate about immigration in Europe is heating up immigration is likely to continue its growth because of low birth rates and increased longevity. But what could be done to boost labour-market participation among immigrants? In a new study examining possible factors behind the difference in rates of participation on the labour market between immigrants and native-born people, economist Andreas Bergh finds two patterns of statistical significance. First, welfare state generosity keeps immigrants away from the labour force. Second, given that immigrants enter the labour force, collective bargaining agreements explain higher incidence of immigrant unemployment.

Ill fares the ITA. Again.

Another attempt to update the Information Technology Agreement (ITA) seems to have failed after China declaring almost half of the new product list as politically sensitive and requested exemptions or lengthy phase-out periods. Hosuk Lee-Makiyama with Lisa Brandt read a funeral litany over the negotiations and ask the question whether China is ready for the free trade agreements it wants, and what modern trade agreements entail in terms of concessions and managing domestic protectionist interests. 

Who’s Afraid of China’s High-Tech Challenge?

Over the last 30 years, the speed and scale of China’s economic rise have stunned the world. Now its government has mapped out bold plans for the next phase of the nation’s development. China’s ambitions and the government’s central role have evoked mixed responses elsewhere. In his new paper, Guy de Jonquières examines China’s policies and its current level of industrial development. As for China, the evidence to date suggests that it is trying move too far too fast and probably in the wrong direction. The kind of dramatic breakthroughs that its state planners yearn for almost certainly exceed the current capacity of its industries to deliver and risk being frustrated by constraints on creativity.  

Latest Publications

ECIPE Occasional Paper No. 06/2014
Cities and the Wealth of Nations: How can Helsinki, London, Paris and Stockholm prosper from TTIP?
By Fredrik Erixon, Martina Francesca Ferracane
Summary | Download (PDF)

ECIPE Occasional Paper No. 05/2014
Demystifying Investor-State Dispute Settlement (ISDS)
By Fredrik Erixon, Roderick Abbott, Martina Francesca Ferracane
Summary | Download (PDF)

ECIPE Policy Brief No. 05/2014
The Problematic Politics of China’s Economic Reform Plans
By Guy de Jonquières
Summary | Download (PDF)

ECIPE Bulletin No. 11/2014
The Impact of Data Localisation on Vietnam’s Economy
By Bert Verschelde
Summary | Download (PDF)

ECIPE Bulletin No. 10/2014
The Impact of Data Localisation on Korea’s Economy
By Bert Verschelde
Summary | Download (PDF)

Upcoming Events

ECIPE Seminar: The Costs of Data Localisation
In response to revelations on mass online surveillance by foreign intelligence services, several governments are moving to restrict the free flow of data across borders. Whereas previous restrictions on the Internet aimed at keeping data out, this new breed of regulation aims to keep data inside state borders. Data localisation, i.e. the requirement that companies store and process personal data within the country in which they were collected, is being considered by policy-makers around the globe.
Speakers: Hosuk Lee-Makiyama, Erik van der Marel, Bert Verschelde
More information

Past events

Articles, Opinion and Commentary

Free flow of data key to economies in South-east Asia
Erik van der Marel and Bert Verschelde provide analysis on the costs of data flow regulations in South-east Asia in the Straits Times

Investor-state disputes have put a spanner in the works for TTIP
Fredrik Erixon writes in the European Voice about ISDS and TTIP (subscription required)

Challenges of the global city
Razeen Sally on the challenges of the global city in The Straits Times

China as a Responsible Stakeholder or Just a ‘Guest’?
Miriam Campanella argues that China is not ready for global leadership

ASEAN needs to ride a new wave of reform
Razeen Sally on ASEAN economic integration in East Asia Forum

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