GDAE co-releases a new report titled “Capital Account Regulations and the Trading System: A Compatibility Review” as negotiators convene in Singapore this week to discuss the Trans-Pacific Partnership Agreement (TPP). A TPP would bring together key Pacific Rim countries into a trading bloc that the US hopes would counter China’s growing Pacific influence.
The report is the second publication of Boston University’s Pardee Center Task Force on Regulating Capital Flows for Long-Run Development, and builds on the Task Force’s first report published in March 2012. The new report is the outcome of a workshop co-sponsored last June in Buenos Aires, Argentina with the Center for the Study of State and Society (CEDES) in Argentina and GDAE. The Task Force, which is co-chaired by GDAE’s Kevin P. Gallagher, consists of former and current Central Bank officials, IMF and WTO staff, members of the Chinese Academy of Social Sciences, as well as scholars and members of civil society.
The second report of the Task Force reveals that US trade and investment treaties are the most constraining in terms of granting nations the policy space to regulate cross-border finance, and suggests that nations should refrain from taking on new commitments without the proper safeguards to put strong regulation in place.
Download: Capital Account Regulations and the Trading System: A Compatibility Review
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