W.T.O. Upholds Tariffs on Tires From China

Last year the Obama administration imposed tariffs of up to 35% on tires from China, arguing that the surge in imports had threatened domestic manufacturing.  China's ascession agreement into the WTO included a special safeguard section that allows the U.S. to make this argument, and this case marks the first time the U.S. has invoked this section of the WTO agreement.  Unlike traditional antidumping case, the U.S. only had to demonstrate that U.S. companies suffered "market disruption" from imports.  This week, a WTO dispute resolution panel ruled that the U.S. tire tariffs were legitimate and legal.  China vows to appeal the ruling.


W.T.O. Upholds Tariffs on Tires From China - NYTimes.com

U.S., S. Korea reach deal on auto trade Ford will back - Drive On: A conversation about the cars and trucks we drive

While Korean automakers are selling hundreds of thousands of cars in the U.S., U.S. automakers aren't experiencing nearly the same level of success in South Korea, where Korean brands dominate more than 97% of the domestic market.  This has long been a sore point for U.S. automakers and unions, who argue that the U.S. market is too open for Korean exports while the Korean market remains relatively close.  The proposed U.S.-Korea Free Trade Agreement may solve these problems, and negotiators have come to agreement on a key number of points that may see more U.S. cars in South Korea soon.

U.S., S. Korea reach deal on auto trade Ford will back - Drive On: A conversation about the cars and trucks we drive - USATODAY.com

Euro Zone Is Imperiled by North-South Divide

When economies run into trouble and start slowing down, governments often turn to devaluing their currencies to make exports cheaper, and therefore more competitive.  The U.S. is in effect doing this now, by printing more money and engage in quantitative easing, driving down the value of the U.S. dollar worldwide.  In the Euro zone, however, individual countries do not control the value of the Euro.  The Euro zone makes sense when countries have similar economic profiles, but recently economists have realized that southern European countries like Portugal, Spain and Greece have uncompetitive economies, with high social benefit costs, high budget deficits, and high wages.  Unlike bigger and more competitive economies in France and Germany, however, they lack strict work habits, innovation, and suffer from inefficient labor markets and tax systems.  This divide is causing a crisis in the Euro zone, a crisis some believe may result in the ultimate embarrassment: the abandonment of the Euro experiment altogether.
 
Euro Zone Is Imperiled by North-South Divide - NYTimes.com

Sri Lankan Accountants Attract Global Outsourcers

War-torn Sri Lanka has 10,000 certified accountants, with another 30,000 in training.  Outsourced accounting offices in Sri Lanka are doing work for global giants including HSBC.  A U.S. CPA makes $59,430 while a Sri Lankan CPA makes $5900, making their work both affordable and high quality. 

Sri Lankan Accountants Attract Global Outsourcers - NYTimes.com