A trusted economic commentator provides a penetrating account of the threats to China's continued economic rise Under President Xi Jinping, China has become a large and confident power both at home and abroad, but the country also faces serious challenges. In this critical take on China's future, economist George Magnus explores four key traps that China must confront and overcome in order to thrive: debt, middle income, the Renminbi, and an aging population. Looking at the political direction President Xi Jinping is taking, Magnus argues that Xi's authoritarian and repressive philosophy is ultimately not compatible with the country's economic aspirations. Thorough and well researched, the book also investigates the potential for conflicts over trade, China's evolving relationship with Trump, and the country's attempt to win influence and control in Eurasia through the Belt and Road initiative.

The Trans-Pacific Partnership (TPP) is a big deal in the making. With the Doha Round of multilateral trade negotiations at an impasse, the TPP negotiations have taken center stage as the most significant trade initiative of the 21st century. As of December 2012, negotiators have made extensive progress in 15 negotiating rounds since the talks began in March 2010, though hard work remains to finish the deal in the coming year or so. Despite this effort, however, the TPP is not well understood. In part, the reason lies in the dynamism of the TPP initiative. Unlike other free trade pacts, the growing membership as the talks have proceeded, and the broad range, complexity, and novelty of the issues on the agenda have made it difficult to track the substantive detail and progress of the talks. This Policy Analysis aims to remedy this problem by providing a reader's guide to the TPP initiative. It first assesses how much the TPP countries are alike and like-minded in their pursuit of a comprehensive trade deal. It then examines the current status of the talks, the major substantive sticking points, and the implications of Canada and Mexico joining the talks as well as prospective membership of other countries. The Policy Analysis then looks ahead to how the TPP could advance economic integration in the Asia-Pacific region and the implications for trade relations with China.

An all-inclusive, exhaustive evaluation of the foreign policy of the European Union.Ten years ago the 2009 Lisbon Treaty put into place the legal and structural foundations for the European Union to play a role as a global actor. In the decade since, the EU itself has undergone intense political and economic stress, from debt crises to the rise of nationalist parties and the strains of Brexit. What effect have these changes had on the EU's foreign policy and its role in the world? This new edition of The Foreign Policy of the European Union offers an up-to-date and comprehensive examination of that question. The globe-spanning contributions to the book include a look at relations between Brussels and its regional neighbors, including Russia; the tensions that have arisen with the United States during the Trump administration; and the burgeoning relationship with China. How the EU is dealing with issues such as migration, terrorism, trade, and security round out the volume.

The rapid emergence of China as a major industrial power poses a complex challenge for global resource markets. Backed by the Chinese government, Chinese companies have been acquiring equity stakes in natural resource companies, extending loans to mining and petroleum investors, and writing long-term procurement contracts for oil and minerals. These activities have aroused concern that China might be "locking up" natural resource supplies, gaining "preferential access" to available output, and extending "control" over the world's extractive industries. On the demand side, Chinese appetite for vast amounts of energy and minerals puts tremendous strain on the international supply system. On the supply side, Chinese efforts to procure raw materials can either exacerbate or help solve the problems of high demand.Evidence from the 16 largest Chinese natural resource procurement arrangements shows that Chinese efforts-like Japanese deployments of capital and purchase agreements in the late 1970s through the 1980s-fall predominantly into categories that help expand, diversify, and make more competitive the global supplier system. Investigation of smaller projects indicates the 16 largest do not suffer from selection bias. However, Chinese attempts to exercise control over mining of rare earth elements may constitute a significant exception. The investigative focus of this analysis is deliberately narrow and precise, assessing the impact of Chinese resource procurement on the structure of the global supply base. The broader policy discussion in the concluding chapter raises other separate important issues, including the impact of Chinese resource procurement on rogue states, on authoritarian leadership, on civil wars, on corrupt payments and the deterioration of governance standards, and on environmental damage. Such effects may make patterns of Chinese resource procurement objectionable, on grounds quite apart from the debate about possible "control" of access on the part of China and Chinese companies.

The global economic and financial crisis has awakened protectionist sentiments around the world, and policymakers have failed to actively seek trade liberalization. In light of this, some have proposed abandoning the Doha Round and starting over with a new agenda. Figuring Out the Doha Round argues that this is far from the time to drop the Doha Round and that it is now more important than ever to sustain political support for the rules-based multilateral trade system.This important new study recommends modest increments in market access commitments by G-20 countries beyond tariff and subsidy cuts in agriculture and nonagricultural market access (NAMA), and policy reforms in customs procedures and related areas that slash red tape and cut transactions costs for exporting and importing goods and services. With additional effort by the G-20 countries, WTO countries can put together a Doha package that is both ambitious and balanced between the interests of developed and developing countries. The study finds that following these recommendations can lead to a world GDP gain of almost $300 billion a year.

Until the February 2004 gas crisis when Gazprom cut off all gas flows via Belarus, the issue of Belarus as a gas transit route was not addressed seriously despite this country's transiting around 20% of Russia's gas exports to Europe. The gas crisis threatened the reliability of gas supplies to Europe. It demonstrated the necessity of bringing Belarus back into focus, explaining how and why the seemingly amicable Russian-Belarussian relationship had deteriorated to such an extent, and suggesting how the problem might evolve in the future. This book shows that the reliability of the Belarussian gas transit routes is influenced by changes in the intensity of the Russian-Belarussian integration and explores whether Belarus is in a position to manage (or, indeed, survive) within the new, 'commercial' framework to which the gas issues had shifted following the failure to establish political union. The book predicts that the mainstay of Belarussian welfare is bound to deteriorate as Russia continues to increase its domestic gas prices at 20% annually as part of its energy strategy and in line with WTO requirements - thus, also making Belarus's independent stance vis-a-vis Gazprom unsustainable. In order to secure gas prices at the level of, at least, Russian domestic prices, Belarus is likely to return to negotiating a joint venture operating the Belarussian transit network together with Gazprom. Yet, even if such a joint venture were to be formed, it would not eliminate the main reason of the unreliability of gas transit via Belarus - the weakness of the national economy. Therefore, unless Belarus embarks on reforms leading to substantial gas conservation, it will continue to be tempted to resort to unauthorised gas off-takes and non-payments undermining the reliability of transit.

NAFTA entered into force in 1994 after a bitter Congressional debate. But NAFTA in operation has proved no less controversial than NAFTA before ratification, for both supporters and opponents of trade liberalization have cited experience with the agreement to justify their positions. To provide a factual basis for this ongoing debate, the authors will evaluate NAFTA's performance over the first seven years, comparing actual experience with both the objectives of the agreement's supporters and the charges of its critics. They will then examine future challenges and opportunities in the trade and investment relationships among the three partner countries and the broader implications for new trade initiatives throughout the hemisphere. Chapter 1 will describe trade, investment, and macroeconomic developments under NAFTA, beginning inauspiciously with the Mexican economic crisis of 1994 but moving on to impressive growth in trilateral trade and Mexican GDP. Chapter 2 will trace the implementation of NAFTA's dispute settlement provisions and the progress to date in implementing reforms. Chapter 3 will distill and update the findings in the authors? recent book NAFTA and the Environment: Seven Years Later (*) and recommend how to improve the performance of NAFTA's institutions in addressing environmental problems. In Chapter 4 the authors undertake a similar assessment of the operations of the North American Agreement on Labor Cooperation and the impact of NAFTA on employment and wages in the region. Chapters 5 and 6 will examine integration in the North American auto and energy markets. The final chapter will look forward and focus on the challenges facing North American economic integrationon important issues such as emigration, environment, energy, and exchange rates.

One of the unique aspects of the WTO as an international organization is that it authorizes members to retaliate against violations by raising tariffs. These authorizations have become increasingly common and increasingly controversial. In this analysis of the retaliation system, Robert Lawrence considers the guiding principles that govern responses to WTO violations, examines how these principles are implemented in practice, and considers options for reform.

The Mexican peso crisis struck in late December 1994, coinciding with a new Mexican administration and the end of the first year of the North American Free Trade Agreement (NAFTA). The crisis poignantly highlighted the success and the inadequacy of the treaty -- success in the expansion of trade and capital flows, inadequacy in institutional capacity. The Canadian, Mexican, and US governments defined the agreement so narrowly that they failed to devise a mechanism that could monitor, anticipate, plan, or even respond to such a serious problem. The new president of Mexico, Vincente Fox Quesada, has boldly proposed transforming the free trade area into a common market like Europe's. This has evoked lukewarm responses from the Bush and Chretien administrations, which have not yet developed ways to cope with the new problems stemming from accelerated social and economic integration or to take advantage of North America's opportunities.

In this visionary study, Robert A. Pastor seizes Fox's idea and maps out the paths toward making it a reality. He analyzes NAFTA's successes and shortcomings, extracts lessons from the European Union's 40 years of reducing disparities between rich and poor countries, and proposes ways that NAFTA can adapt and incorporate those lessons. The centerpiece of the book is a detailed proposal for new institutions and "North American policies, " including plans for infrastructure and transportation, immigration and customs, a unified currency, and projects aimed to lift the poorer regions. The author addresses issues of sovereignty and national interest and concludes with a look ahead toward a broader Free Trade Area of the Americas.

This book is the first topropose a detailed approach to a North American Community -- different from the European Common Market but drawing lessons from its experience. It will be of considerable interest to policymakers in the region as well as researchers and students of international political economy, world trade, and foreign affairs.

What are the choices the Asia-Pacific community will face if it proceeds farther down the path of developing preferential regional trading arrangements? Fragmentation of the region into preferential trading arrangements on a bilateral or subregional basis promises relatively little economic gain and considerable risk of increased trade conflict. Larger preferential trading blocs, spanning the whole of East Asia, the Western Pacific, or the APEC membership, offer greater potential economic benefits but also face formidable political obstacles.

In this study, Scollay and Gilbert weigh the economic consequences of the increased use of preferential trading arrangements in the Asia-Pacific region, whether these develop on the basis of trans-Pacific cooperation or solely within the East Asian or Western Pacific subregions. They evaluate the economic effects of both the existing proposals for new bilateral and multilateral agreements and of more far-reaching developments involving the creation of a substantial trading bloc or blocs in the region. Comparisons between the economic effects of establishing such bloc(s) in the region and the effects of achieving APEC's Bogor goals on the basis of "open regionalism" suggest that the latter approach continues to offer a worthwhile alternative. The study demonstrates that the benefits of global free trade dominate those available from the establishment of any combination of major blocs or from APEC's "open regionalism."

China and Taiwan have built one of the most intertwined and important economic relationships in the world, and yet that relationship is not mutually open, compliant with World Trade Organization norms, or even fully institutionalized. What's more, despite massive trade and investment flows, the boundary between the two is a serious flashpoint for potential conflict. But leaders in Beijing and Taipei have committed to normalize and deepen their economic intercourse and open a new post-Cold War era in their relationship. While the political significance of this gambit has captured attention worldwide, the scope of opening intended and the bilateral, regional, and global effects likely to ensue are as yet poorly understood. This volume attempts to remedy that uncertainty with careful modeling combined with a qualitative assessment of the implications of the cross-strait economic opening now agreed in an Economic Cooperation Framework Agreement (ECFA). The study explores the implications for Taiwan and China, for their neighbors, and for the United States if this undertaking is fully implemented by 2020.

A history of opium's dramatic fall from favor in colonial Southeast Asia During the late nineteenth century, opium was integral to European colonial rule in Southeast Asia. The taxation of opium was a major source of revenue for British and French colonizers, who also derived moral authority from imposing a tax on a peculiar vice of their non-European subjects. Yet between the 1890s and the 1940s, colonial states began to ban opium, upsetting the very foundations of overseas rule-how did this happen? Empires of Vice traces the history of this dramatic reversal, revealing the colonial legacies that set the stage for the region's drug problems today. Diana Kim challenges the conventional wisdom about opium prohibition-that it came about because doctors awoke to the dangers of drug addiction or that it was a response to moral crusaders-uncovering a more complex story deep within the colonial bureaucracy. Drawing on a wealth of archival evidence across Southeast Asia and Europe, she shows how prohibition was made possible by the pivotal contributions of seemingly weak bureaucratic officials. Comparing British and French experiences across today's Burma, Cambodia, Laos, Malaysia, Singapore, and Vietnam, Kim examines how the everyday work of local administrators delegitimized the taxing of opium, which in turn made major anti-opium reforms possible. Empires of Vice reveals the inner life of colonial bureaucracy, illuminating how European rulers reconfigured their opium-entangled foundations of governance and shaped Southeast Asia's political economy of illicit drugs and the punitive state.

The Trans-Pacific Partnership (TPP) between 12 Pacific Rim countries has generated the most intensive political debate about the role of trade in the United States in a generation. The TPP is one of the broadest and most progressive free trade agreements since the North American Free Trade Agreement (NAFTA). The essays in this Policy Analysis provide estimates of the TPP's benefits and costs and analyze more than 20 issues in the agreement, including environmental and labor standards, tariff schedules, investment and competition policy, intellectual property, ecommerce, services and financial services, government procurement, dispute settlement, and agriculture. Through extensive analysis of the TPP text, PIIE scholars present an indispensable and detailed "reader's guide" that also sheds light on the agreement's merits and shortcomings.

With the launch of the World Trade Organization (WTO) in 1995, its Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) emerged as a symbol of coercion in international economic relations. In the decade that followed, intellectual property became one of the most contentious topics of global policy debate. The Implementation Game is the first full-length study of the politics surrounding what developing countries did to implement TRIPS and why.
Based on a review of the evidence from 1995 to 2007, this book emphasizes that developing countries exhibited considerable variation in their approach to TRIPS implementation. In particular, developing countries took varying degrees of advantage of the legal safeguards and options-commonly known as TRIPS 'flexibilities'--that the Agreement provides.
To explain this variation, The Implementation Game argues that TRIPS implementation must be understood as a complex political game played out among developing country governments and a range of stakeholders-developed countries, non-governmental organizations (NGOs), intergovernmental organizations (IGOs), and industry groups. The contested nature of the TRIPS bargain spurred competing efforts to revise the terms of TRIPS and to influence global IP regulation more broadly. The intensity of the implementation game was amplified by an awareness among the various stakeholders that the IP reforms developing countries pursued would influence these ongoing international negotiations. The book attributes the variation in TRIPS implementation to the interplay between these global IP debates, international power pressures, and political dynamics within developing countries, and includes historical analysis, compilations of evidence, and analysis supported by examples from across the developing world.
The Implementation Game will be of interest both to scholars of international relations, law, and international political economy as well as to policymakers, commentators, and activists engaged in debates on the global governance of intellectual property.

This book analyzes how the Appellate Body uses particular principles of general international law in interpreting the WTO covered agreements. It deals equally with general international law and WTO law. The aim is to explain how the Appellate Body interprets and applies customary international law on treaty interpretation in dealing with the WTO covered agreements. The main concern is to analyze the judicial reasoning and ways of justifying judicial decision-making. In particular, it answers the question of how the Appellate Body explains its reading of WTO treaty language.
It is argued that the Appellate Body has interpreted the WTO covered agreements in a contextual and effective manner, an approach that corresponds with general international law. The character of the WTO covered agreements has, nevertheless, confronted the Appellate Body with some questions of interpretation that were until recently unexplored or neglected by other courts and tribunals. In that sense, the Appellate Body has contributed to the development of general international law on treaty interpretation, or at least to its practice.
WTO law is primarily treaty law, but increasingly soft law and broader themes and values from other disciplines, such as governance, variable geometry and legitimacy, are introduced and discussed. Customary international law - with the exception of the principles of treaty interpretation - and general principles of law are often seen as excluded entirely. An ancillary theme of this proposed monograph is the extent to which customary international law and general principles of law have penetrated WTO law through the technique of treaty interpretation.

International trade and investment in services are an increasingly important part of global commerce. Advances in information and telecommunication technologies have expanded the scope of services that can be traded cross-border. Many countries now allow foreign investment in newly privatized and competitive markets for key infrastructure services, such as energy, telecommunications, and transport. More and more people are travelling abroad to consume tourism, education, and medical services, and to supply services ranging from construction to software development. In fact, services are the fastest growing components of the global economy, and trade and foreign direct investment (FDI) in services have grown faster than in goods over the past decade and a half.
International transactions, however, continue to be impeded by policy barriers, especially to foreign investment and the movement of service-providing individuals. Developing countries in particular are likely to benefit significantly from further domestic liberalization and the elimination of barriers to their exports. In many instances, income gains from a reduction in protection to services may be far greater than from trade liberalization in goods.
In light of the increasing importance of international trade in services and the inclusion of services issues on the agendas of the multilateral, regional and bilateral trade negotiations, there is an obvious need to understand the economic implications of services trade and liberalization. A Handbook of International Trade in Services provides a comprehensive introduction to the subject, making it an essential reference for trade officials, policy advisors, analysts, academics, and students. Beginning with an overview on the key issues in trade in services and discussion of the GATS, the book then looks at trade negotiations in the service sector, the barriers to trade in services, and concludes by looking at a number of specific service sectors, such as financial services, e-commerce, health services, and the temporary movement of workers.

The new edition of this successful text analyses the current economic issues facing a rapidly changing Europe. The authors combine policy, history and data to present a global perspective of the EU, written with a range of students taking an introductory module in European Economics in mind. With new material on the economic relationship between the EU and the US, Enlargement and the Lisbon process the authors consider the changing landscape and Europe's development as a major global player. The authors use history, theory and analysis including comparative data to evaluate Economic policies ranging from the Common Agricultural Policy and Competition Policy to Social Policy and Monetary Policy and to assess issues such as unemployment and foreign aid. The contributors are drawn from a range of Universities such as Vienna, Manchester, Brussels, LSE and Purdue, as well as institutions such as the IMF and the European Central Bank.

"In this pathbreaking book, Francesco Duina smartly challenges conventional wisdom on globalization, contrasting economic visions of integration with social understandings of how markets work. By comparing three different regional trade agreements, the book provides exceptional insight into how global models are adopted and vary around the world. The case studies on the standardization of reality are original and refreshing, and the book's rigorous analysis of law will be compelling reading for scholars, practitioners, and policymakers."--John K. Glenn, Director of Foreign Policy, German Marshall Fund of the United States

""The Social Construction of Free Trade" is a brilliant book that is poised to be a classic. It contains an astonishing amount of empirical material and a striking methodology, stands alone in comparing the three markets in question, possesses original ideas, is powerfully informed theoretically, and is beautifully written."--John A. Hall, McGill University, coauthor of "Is America Breaking Apart?"

"This is a very important and well-written book. It argues, contrary to much of the current literature, that transnational regional markets did not arise naturally or spontaneously. Nor did they converge on a common model. Instead, they were socially constructed through a process of political bargaining, struggle, and negotiation. To my knowledge, this is the first book that compares the development of different regional markets. It is a must read for sociologists, political scientists, economists, and others who are interested in globalization, comparative political economy, economic sociology, and how regional markets are created and operate."--John Campbell, Dartmouth College, author of "Institutional Change and Globalization"

This book is a political history of the Tokyo Round (1973--1979), the largest and most significant multilateral trade negotiation since the founding of the GATT in 1947. Gilbert Winham provides a detailed account of the processes by which the negotiation was accomplished and an assessment of the Tokyo Round's substantive impact on the international trading system. Originally published in 1987. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

Regionalism became a major issue in international commercial diplomacy during the 1990s. The European Union's 1992 programme, the formation of NAFTA, and attempts to form or strengthen regional trading arrangements in South America, southern Africa, and Southeast Asia were viewed as a challenge to the nondiscrimination principle which was the cornerstone of the postwar international trading system. The Economics of Regional Trading Arrangements provides a unified analysis of policies which discriminate among trading partners, combining in roughly equal proportions history, theory, and a review of empirical studies.

The Japan-led Trans-Pacific Partnership (CPTPPA) of 2018 is the most far-reaching 'megaregional' economic agreement in force, with several major countries beyond its eleven negotiating countries also interested. Still bearing the stamp of the original US involvement before the Trump-era reversal, TPP is the first instance of 'megaregulation': a demanding combination of inter-state economic ordering and national regulatory governance on a highly ambitious substantive and trans-regional scale. Its text and ambition have influenced other negotiations ranging from the Japan-EU Agreement (JEEPA) and the US-Mexico-Canada Agreement (USMCA) to the projected Pan-Asian Regional Comprehensive Economic Partnership (RCEP). This book provides an extensive analysis of TPP as a megaregulatory project for channelling and managing new pressures of globalization, and of core critical arguments made against economic megaregulation from standpoints of development, inequality, labour rights, environmental interests, corporate capture, and elite governance. Specialized chapters cover supply chains, digital economy, trade facilitation, intellectual property, currency levels, competition and state-owned enterprises, government procurement, investment, prescriptions for national regulation, and the TPP institutions. Country studies include detailed analyses of TPP-related politics and approaches in Japan, Mexico, Brazil, China, India, Indonesia, and Thailand. Contributors include leading practitioners and scholars in law, economics, and political science. At a time when the WTO and other global-scale institutions are struggling with economic nationalism and geopolitics, and bilateral and regional agreements are pressed by public disagreement and incompatibility with digital and capital and value chain flows, the megaregional ambition of TPP is increasingly important as a precedent requiring the close scrutiny this book presents.

In this conference volume, distinguished economists and trade policymakers address the US initiatives to enter into free trade negotiations with a broad range of countries in the Asia-Pacific region, the Western Hemisphere, and Africa. The sheer number of these initiatives is unprecedented and has provoked major policy questions concerning US interests in the negotiations, the setting of priorities among the many contenders for concluding free trade agreements (FTAs) with the United States, the objectives of those trading partners, and the implications that these agreements could have for broader initiatives such as the Doha Round in the World Trade Organization and the Free Trade Area of the Americas. The papers in the volume were presented during a conference on FTAs and US trade policy, sponsored by the Institute in May 2003. The editor, Jeffrey Schott, summarizes the policy implications drawn from the conference papers and discussions, which are organized around several topics: the conceptual case for FTAs and how they have worked in the past; what FTAs imply for the broader global system; the specific agreements that are already being pursued (Australia, Central America, Morocco, southern Africa) or considered (ASEAN, Brazil, Egypt, Korea, and Taiwan). The volume includes a technical appendix with results of GTAP and gravity model simulations of the trade and welfare effects of the prospective agreements.

Why did the Soviet Union squander the political leverage afforded by its trade subsidy to Eastern Europe? Why did Soviet officials fail to bargain with resolve, to link subsidies to salient political issues, to make credible commitments, and to monitor the satellites' policies? Using an unprecedented array of formerly secret documents housed in archives in Moscow, Warsaw, and Prague, as well as interviews with former Communist officials across Eastern Europe, Randall Stone answers these questions and others that have long vexed Western political scientists.

Stone argues that trade politics revolved around the incentives created by distorted prices. The East European satellites profited by trading on the margin between prices on the Western market and those in the Soviet bloc. The Soviet Union made numerous attempts to reduce its implicit trade subsidy and increase the efficiency of the bloc, but the satellites managed consistently to outmaneuver Soviet negotiators. Stone demonstrates how the East Europeans artfully resisted Soviet objectives.

Stone draws upon recent developments in bargaining and principal-agent theory, arguing that the incentives created by domestic institutions weakened Soviet bargaining strategies. In effect, he suggests, perverse incentive structures in the Soviet economy were exported into Soviet foreign policy. Furthermore, Stone argues, incentives to smother information were so deeply entrenched that they frustrated numerous attempts to reform Soviet institutions.

The announcement by China that it will implement a national emissions trading scheme confirms the status of this instrument as the pre-eminent policy choice for mitigating climate change. China will join the dozens of existing and emerging schemes around the world - from the EU to California, South Korea to New Zealand - that use carbon units (otherwise known as emissions permits or carbon credits) to trade in greenhouse gas emissions in a multi-billion dollar global carbon market. However, to date, there has been no consensus about this pre-eminent policy instrument being regulated by international economic law through the World Trade Organization, international investment agreements, and free trade agreements. Munro addresses this issue by evaluating whether carbon units qualify as 'goods', 'services', 'financial services', and 'investments' under international economic law and showing how international economic law applies to emissions trading scheme in diverse and unexpected ways. Further, by engaging in a comparative assessment of schemes around the world, his book illustrates how and why all emissions trading schemes engage in various forms of violations of international economic law which would not, in most instances, be justified by environmental or other exceptions. In doing so, he demonstrates how such schemes can be designed or reformed in ways to ensure their future compliance.

This book explores whether the world economy is breaking up into regional trading and currency blocs centred on the European Community, Japan and the United States. Frankel uses trade, investment and financial data to assess this issue. He concludes with an analysis of how trends in regional economic integration can be used as building blocks for a stronger multilateral system.