IBT News Blog

As expected, the WTO dispute resolution body ruled against the EU in the ongoing meat hormones case, however the dispute resolution body also reprimanded the US and Canada for their selection of products to retaliate against. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7323200.stm

This article discusses the reasons for the rising rice prices across the market. See http://www.iht.com/articles/2008/03/31/business/food.php

Zara, an international clothing chain originating in Spain, has announced profits due in large part to its expansion into Chinese and Russian markets. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7322379.stm

The Swedish government has announced that it will sell Absolut vodka to Pernod, with certain requirements which will ensure that the brand retains its Swedish identity. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7322033.stm

In a follow-up to a previous post, the US-European open skies agreement in aviation went into effect today. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7318455.stm

Lehman Brothers plans to sue a Japanese firm over alleged fraud worth at least $350 million. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7321284.stm

Vietnam and India have become the latest nations to limit their export of rice in order to ensure that their respective domestic populations' rice demands can be reasonably met. See http://www.iht.com/articles/2008/03/28/business/rice.php

Russia has been granted contracts to develop nuclear power facilities in Egypt. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7313037.stm

After promises of talks with the government, the striking Argentine farmers has suspended their strikes. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7319903.stm

President Bush has announced that he is willing to make key agricultural concessions in order to further the progress of the Doha round of trade negotiations. See http://www.iht.com/articles/2008/03/28/business/28trade.php

This article discusses the US Treasury Department's proposal to overhaul and increase its ability to investigate the financial market as a whole and its many component parts. See http://www.iht.com/articles/2008/03/29/business/regulate.php

This article discusses the IMF's institutional power redistribution plan, as well as the opinions of those nations which stand to gain and lose under the proposal. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7319718.stm

In a follow-up to the meat hormones WTO dispute we read for class several weeks ago, the WTO dispute resolution body is expected to issue a decision next week which allows the continued US and Canadian sanctions against certain EU products which stemmed from the original dispute to be continued. See http://www.iht.com/articles/2008/03/28/business/wto.php

The Cuban government has just eased its restrictions on citizen access to cell phones, potentially opening up a new market. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7318774.stm

This article discusses the issue of cybersquatting and international commerce. See http://www.ft.com/cms/s/0/33040a58-fc1d-11dc-9229-000077b07658,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=abb716b0-2f7a-11da-8b51-00000e2511c8,print=no,_i_email=y.html

Japan's inflation level increased in February. See http://www.iht.com/articles/2008/03/28/business/28jpecon.php

China will pay its rice and wheat farmers more for their ctops in order to stave off potential unrest during the Beijing Olympics. See http://www.iht.com/articles/2008/03/28/business/yuan.php

This article discusses the potential impact of a Chinese anti-monopoly law on Microsoft's attempts to buy Yahoo. See http://www.iht.com/articles/2008/03/28/technology/28yahoo.php

Japan is developing its first domestic made passenger jet. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7318165.stm

In the wake of growing concerns regarding the presence of dangerous chemicals in its mozzarella, the Italian government has agreed to a recall of the particular products in question, thereby avoiding EU sanctions. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7318391.stm

Vietnam has implemented new rice export restrictions, becoming another key Asian rice exporter to do so. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7317989.stm

This article discusses the Indian government's attempts to ensure that its citizens who work overseas - especially in Gulf nations - receive fair wages. What does this indicate about the idea of globalized workforces? See http://www.iht.com/articles/2008/03/27/business/rights.php

This article discusses attempts by Air France-KLM to make its proposal to buy Alitalia more attractive to Alitalia and its unions. See http://www.iht.com/articles/2008/03/28/business/28alitalia.php

This article discusses the current and potential impacts of rising rice prices and dwindling rice stocks on various Asian economies and cultures. See http://www.ft.com/cms/s/0/d6f1cd74-fc29-11dc-9229-000077b07658,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=9ff9d7a4-506d-11da-bbd7-0000779e2340,print=no,_i_email=y.html

In a follow up to a recent post, the EU is now investigating claims that Italian mozzarella contains an unacceptable amount of dangerous chemicals and has threatened to ban mozzarella in the future. See http://www.iht.com/articles/2008/03/27/europe/union.php

This articke presents a series of viewpoints of English importers and exporters regarding the rising strength of the Euro relative to the pound. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7317387.stm

EADS, the consortium of Airbus and Northrup Grumman, has just been awarded a major contract by the Royal Air Force. This follows up its recent and controversial award of a large contract by the US Department of Defense. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7316835.stm

This article discusses the World Bank's concerns over Pakistan's current economic conditions and their impact on future Pakistani economic trends. See http://news.bbc.co.uk/2/hi/business/7316517.stm

This article discusses strikes by Argentine farmers who are protesting rising export taxes on their products. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7316170.stm

If you're still having trouble narrowing down a paper topic or just want to think about the recent opinion, what impact might this opinion have on business transactions? Can state default rules trump obligations under an international treaty?

See this editorial and the opinion.

This article discusses the impact of a salmon illness on Chilean salmon stock and Chilean exports of salmon. See http://www.iht.com/articles/2008/03/26/america/salmon.php

This article discusses Romania's shift from embracing genetically modified crops to becoming weary of the health risks associated with these crops. See http://www.iht.com/articles/2008/03/26/business/organic.php

German business confidence rates rose last month. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7314226.stm

The US durable goods orders rate fell in February, 2008. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7314831.stm

This article discusses the EU's new investigation of Visa's surcharge policies for the use of a Visa card outside the country of the cardholder's residence. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7315255.stm

This article discusses the potential of EU action against Canada to stop its seal hunt. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7314903.stm

The Japanese export rate rose in February, 2008. See http://www.iht.com/articles/2008/03/26/business/26japan.php

This article discusses the negative impact of the dollar's weakness on various aspects of the Asian economy. See http://www.iht.com/articles/2008/03/26/business/dollar.php

Recent stories regarding the healthfulness of mozzarella cheese from Naples have caused nations such as Japan to suspend importation of the cheese. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7314244.stm

This article discusses the reluctance of foreign courts to impose US punitive damages awards. See http://www.iht.com/articles/2008/03/26/america/26punitive.php

The Bank of China has announced that its profits for 2007 increased over 30%. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7312542.stm

Ford has completed the processes necessary to finalize its sale of Jaguar and Land Rover to Tata, an Indian car manufacturer. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7313380.stm

This article discusses the increasing tensions between oil producer BP and the Russian government. See http://www.iht.com/articles/2008/03/25/business/bp.php

This article discusses the impact of the US-European Open Skies agreement for aviation, which will take effect next week. See http://www.iht.com/articles/2008/03/25/travel/23pracopenskies.php

In a follow-up to a prior posting, the Philippine government has ordered that rice hoarders in the Philippines be punished in light of increasing supply-side issues for rice in the Philippines. See http://www.iht.com/articles/2008/03/25/asia/phil.php

Following the US' lead, several European states have recently recalled Chinese-made batches of Herparin (a drug commonly used as a blood thinning agent) after evidence of contamination. See http://www.iht.com/articles/2008/03/25/business/drug.php

This article discusses the renewed - and legal - trade in mammoth ivory from Russia and the impact of the ban on elephan ivory trading on the desirabiluty of mammoth ivory. See http://www.iht.com/articles/2008/03/25/europe/mammoth.php

New data on US consumer confidence rates has just been released. This information sets US consumer confidence at a 5 year low. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7312841.stm

This article discusses the proposed corporate manslaughter laws in the UK, which are essentially aimed at increasing the scope of discovery of corporate information in instances of mass disaster (ie. air and boat accidents). See http://www.ft.com/cms/s/0/f5196b12-f9cd-11dc-9b7c-000077b07658,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=fe95602e-e821-11db-b2c3-000b5df10621,print=no,_i_email=y.html

Iceland has recently announced a dramatic increase in its interest rates. See http://www.ft.com/cms/s/0/5f9301dc-fa51-11dc-aa46-000077b07658,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=7c485a38-2f7a-11da-8b51-00000e2511c8,print=no,_i_email=y.html

The OECD has come out with a new set of policies on sovereign wealth funds. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7312263.stm

New data indicates that US housing sales increased in February, 2009, but that sales prices themselves were lower than expected. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7311465.stm

This article raises interesting questions regarding the role of the EU in its members' trade practices per se. See http://www.iht.com/articles/2008/03/24/business/rtrinside25.php

New data indicates an unanticipated increase in UK retail sales. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7306333.stm

This article discusses the latest attempts by the US Treasury Department to stop US firms from using the Iranian Central Bank. See http://www.ft.com/cms/s/0/efebdb30-f788-11dc-ac40-000077b07658,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=fc3334c0-2f7a-11da-8b51-00000e2511c8,print=no,_i_email=y.html

A recent study has found that world trade has nearly stopped growing in the wake of problems with the US and international economies. See http://www.ft.com/cms/s/0/315380ae-f5ff-11dc-8d3d-000077b07658,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=a22ad130-8ad8-11db-8940-0000779e2340,print=no,_i_email=y.html

New data indicates that the European economy is improving somewhat. See http://www.iht.com/articles/2008/03/21/business/euecon.php

The OECD has indicated that it believes the US is in serious economic trouble. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7306791.stm

This article discusses the penalties assessed against AB Volvo for its involvement in the Iraq oil-for-food program. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7307432.stm

This article discusses the decision of the government of the Democratic Republic of the Congo to review all mining contracts currently in existence. What are the implications of this for attractung outside investment into developing, and especially war torn, countries? See http://news.bbc.co.uk/2/hi/africa/7306325.stm

This article discusses the various points of view on the reasons for Ethiopia's drastic price increases. See http://news.bbc.co.uk/go/em/fr/-/2/hi/africa/7308578.stm

The IMF is warning of possible market and economic "contagion" as a result of the recent market instability in the US. See http://www.ft.com/cms/s/0/86e11670-f41b-11dc-aaad-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,print=no,dwp_uuid=abb716b0-2f7a-11da-8b51-00000e2511c8,_i_email=y.html

This article discusses the change in rice import policies used by the Philippines, which is one of the largest rice importers in the world. See http://www.ft.com/cms/s/0/de4e12f4-f3f9-11dc-aaad-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=7f5f6b12-2f66-11da-8b51-00000e2511c8,print=no,_i_email=y.html

This article discusses a case filed against Chiquita by the families of five missionaries who were kidnapped and supposedly killed by FARC rebels in Colombia. The basis for suit against Chiquita is the allegation at the company gave money to FARC rebels. How does this fit with the decision in Shell? See http://www.iht.com/articles/2008/03/17/america/rebels.php

This article discusses the impact of the run on Bear Sterns last week on the potential investment in Bear Sterns by a Chinese entity. See http://www.iht.com/articles/2008/03/16/business/16citic.php

This article offers an interesting perspective on the financial highs and lows of the island of Nauru. Beyond Nauru itself, the article offers insights into the ways in which local populations which see a drastic influx of money through globalization can benefit and suffer. See http://news.bbc.co.uk/go/em/fr/-/2/hi/programmes/from_our_own_correspondent/7296832.stm

Air France-KLM's bid to take over Alitalia has just been accepted by Alitalia. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7299203.stm

In a historic decision, France is attempting to expand the champagne region and appellation due to increased consumer demand for champagne products. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7294487.stm

This article discusses the various economic impacts of the current currency and financial market fluctuations on European exporters. See http://www.iht.com/articles/2008/03/14/business/euro.php

This article discusses the expected low growth rate for 2008 in Ireland, which has been one of the most expansive economies in the EU for years. See http://www.ft.com/cms/s/0/647776ec-f150-11dc-a91a-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=7c485a38-2f7a-11da-8b51-00000e2511c8,print=no,_i_email=y.html

New data indicates that US inflation rates for February remained relatively stable. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7296449.stm

Cuba has announced that it will ease a ban on various electronic goods. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7295714.stm

Figures for February, 2008 indicate that inflation in the eurozone area rose more than expected. See http://www.iht.com/articles/2008/03/14/business/14eueconFW.php

Chrysler has announced that it will require all but its most essential employees and plants around the world to take a coordinated summer vacation in an effort to cut costs. See http://www.iht.com/articles/2008/03/13/business/chrysler.php

The Economist ran a story on the impact government can have on a country's general wealth. According to a recent research, a country is generally wealthier if the State enforces the rule-of-law. The research tends to prove that countries who enforce the rule-of-law are generally wealthier.

http://www.economist.com/research/articlesBySubject/displaystory.cfm?subjectid=7933596&story_id=10835590

http://www.worldbank.org/

In my eyes, this research is essentially flawed: it does not define what test was applied to define the "rule-of-law" and compare its enforcement between the countries. It is not clear how the enforcement of the rule-of-law was quantifiable.

However, even though the resarch did not provide evidence of anything in my opinion, it had the merit of raising the question of the Legislator's role in providing a realiable and prosperous economy. Civil law countries, who often choose to enact restrictions on businesses (labor and other protective measures), are deemed to provide a poor structure for businesses and have been criticized by the World Bank. Countries who have a tradition of common law, on the other hand, are considered to provide a better context for businesses. Though we should avoid generalizing, civil law countries tend to allow the creation of businesses so long as the activity is run in a way that complies with rules enacted to protect classes of people considered to be in a weak position. Common law countries have been known for favoring contractual relationships, which is considered to be good for evolving businesses.

In the US, citizens are suspicious of governments and want the government to get involved in what it has to get involved in, leaving the market and the parties to a contract solve the rest of the issues. In Europe - with the important exception of the UK (common law country) - citizens expect the governement to participate in the development of the country's welfare. Not surprisingly therefore, France has been very criticized by the World Bank, because of high taxes and strict labor laws and Italy and Greece in this study constitute an exception to the finding that rich countries have good enforcement of the rule-of-law. In light of the this conception of the role of government, China appears as another exemple. Though the country is opening up to free trade and the Western world, the State is still very involved in what used to be a totally nationalized and planned economy. Obviously, France, Italy and Greece are developped countries that have been able to maintain decently wealthy economies. China has incredibly increased its wealth in recent years and now poses a threat to Western economies, while being a of major attraction for these same Western countries. Therefore, is the position according to which a government should get the least involved to enjoy a prosperous economy simply wrong?

Note that the World Bank's website has numerous articles about the subject, some old, some more recent. The Economist's source was actually the World Bank.

In a follow-up to a prior posting, the House of Lords has found that a UK man charged with price fixing in the US cannot be extradited based on thiose charges. See http://www.ft.com/cms/s/0/5d430478-f02d-11dc-ba7c-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=f4ebce78-e821-11db-b2c3-000b5df10621,print=no,_i_email=y.html

New data indicates a reduction in Chinese industrial output in early 2008. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7293548.stm

This article discusses the position of British Prime Minister Gordon Brown that the EU should reduce taxes on "green" products in order to encourage their use and consumption. Are there potential ramifications under GATT? See http://news.bbc.co.uk/go/em/fr/-/2/hi/uk_news/politics/7293142.stm

In 2000, a Concorde flight famously caught fire in Paris, killing all aboard. A prosecutor in Paris is now seeking manslaughter charges against Continental - the owner of the Concorde - for failing to take certain safety measures. What are the potential ramifications of this charge on international trade, especially in terms of air travel and associated products? See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7291269.stm

It appears that a more final deal has been reached between the Ukraine and Gazprom. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7293642.stm

This article discusses Curacao's new role as a place for Venezuelans seeking US dollars to visit in the wake of actions by the Venezuelan government to crack down of currency trading involving dollars. See http://www.iht.com/articles/2008/03/12/america/journal.php

It appears that the US government will act to shut down certain salmon fisheries along the West Coast due to issues involving stock depletion. See http://www.iht.com/articles/2008/03/13/america/salmon.php

These articles address the current crisis in finding an acceptable replacement for the head of the Bank of Japan. See http://www.iht.com/articles/2008/03/12/business/boj.php

http://www.iht.com/articles/2008/03/13/business/13boj.php

This article discusses the structure and goals of the Global Fund to Fight AIDS, Tuberculosis and Malaria, a hybrid intergovernmental and private organization. See http://www.iht.com/articles/2008/03/11/business/glob12.php

Protests over the imposition of sanctions against certain parts of the economy in Belarus by the US have led to the temporary recall of the US ambassador to Belarus. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7292067.stm

Although this article only highlights current developments in the Taiwan/China issue, I think the article is valuable in pointing out some impacts that international relations has on economy. http://www.nytimes.com/2008/03/12/world/asia/12taiwan.html?ref=asia

Because of the history between Taiwan and China, the ensuing Korean War, and the rift between USSR and China, the sovereign status of Taiwan has been in limbo for over 50 years. Until fairly recently, Taiwan claimed to be the legitimate government over China, but changed its stance when a pro-independence president was elected almost 8 years ago. Then, in part due to China's soaring market, and in part due to political strife domestically and with China, Taiwanese economy soured. Today, any political development will greatly impact the Taiwanese economy (I believe almost 30% of the Taiwanese exports is to China). And vice versa, any development will also affect how the Taiwanese government approaches the issue of China.

submitted by: AL

This article discusses the attempts by the European Commission to increase its role in the trading activities of firms within member states, an area which was typically reserved for the member states themselves. See http://www.ft.com/cms/s/0/0fcdeb3a-efc0-11dc-8a17-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=8baec054-53d0-11db-8a2a-0000779e2340,print=no,_i_email=y.html

This article discusses the successfulness of international trading agreements and dispute settlement entities, as well as their perception in the developed and developing world. See http://www.ft.com/cms/s/0/58699264-ef9c-11dc-8a17-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,print=no,dwp_uuid=abb716b0-2f7a-11da-8b51-00000e2511c8,_i_email=y.html

The new British Budget was unveiled today and contained important assessments of the state of the British economy. See http://news.bbc.co.uk/go/em/fr/-/2/hi/uk_news/politics/7290372.stm

This article discusses the current status of the proposed free trade agreement between the US and Colombia and the issue of whether to submit this agreement to Congress for approval. See http://www.ft.com/cms/s/0/b8b69b86-ef9b-11dc-8a17-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,print=no,dwp_uuid=d08c90e6-d316-11db-829f-000b5df10621,_i_email=y.html

This article provides insight into the world of grain trading, which has come under increasing scrutiny given the recent rises in grain prices. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7289278.stm

This article discusses the World Bank's new aid pledge to Africa, which is particularly necessary in light of increasing food prices. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7289747.stm

In light of increasing gas prices, the UK has announced that it will withhold a planned increase in gas taxes for at least 6 months. See http://news.bbc.co.uk/go/em/fr/-/2/hi/uk_news/politics/7291016.stm

This article discusses the new European investigation of price fixing by a variety of airlines. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7290061.stm

New data indicates that the US trade deficit increased in January, 2008. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7289907.stm

The EU regulatory body has given its approval to the acquisition of DoubleClick by Google, allowing the transaction to go forward. See http://www.iht.com/articles/2008/03/11/business/google.php

Venezuela has recently allowed foreign oil development firms to return to the country after having thrown them out over a year ago. Interestingly, most US oil companies are stating away from Venezuela (and indeed some, such as Exxon/Mobil are still involving in litigation against Venezuela), however European oil companies have responded favorably to the invitation to return. See http://www.ft.com/cms/s/0/5c4d3202-eef0-11dc-97ec-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=8fa2c9cc-2f77-11da-8b51-00000e2511c8,print=no,_i_email=y.html

This article discusses attempts by several Persian Gulf states to develop alternative methods of fuel and energy generation for economic and environmental reasons. See http://www.ft.com/cms/s/0/2e10ac0c-eef5-11dc-97ec-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=728a07a0-53bc-11db-8a2a-0000779e2340,print=no,_i_email=y.html

The IMF has warned Vietnam that it needs to implement certain economic measures in order to keep its economy from developing too fast to be sustainable. See http://www.ft.com/cms/s/0/2733077c-eef5-11dc-97ec-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=7f5f6b12-2f66-11da-8b51-00000e2511c8,print=no,_i_email=y.html

New figures state that China's inflation rates continued to rise in February, 2008. See http://www.iht.com/articles/2008/03/11/business/11yuan.php

This article discusses the combined actions of the US and several European reserve banks in order to combat the threat of inflation. See http://www.iht.com/articles/2008/03/11/business/fed.php

This article discusses the findings of a new report by the Inter-American Development Bank which indicates that remittances by immigrants to the US to their home states dropped last year. See http://www.ft.com/cms/s/0/d76f27a6-eedc-11dc-97ec-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=8fa2c9cc-2f77-11da-8b51-00000e2511c8,print=no,_i_email=y.html

New data from January, 2008 indicates that German export rates rose, which is surprising to some given the increased strength of the euro. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7288324.stm

In another issue which might reach the WTO in the future, the EU is investigating whether the US' rules on online gambling are violations of international trade law. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7288365.stm

This article discusses the impact of recent market volatility, especially in the lending sector, on hedge funds. See http://www.iht.com/articles/2008/03/10/business/hedge.php

This article discusses the less than stellar performance of a new Chinese IPO involving China Railway Construction and what this performance means for the markets in China and Hong Kong generally. See http://www.iht.com/articles/2008/03/10/business/chipo.php

This article discusses the concerns of Europe's Central Bank regarding the volatile currency market and its effects on the euro and the dollar. See http://www.iht.com/articles/2008/03/10/business/euecon.php

Now Boeing protests the tanker refueler award to the EU group. Given Boeing's past history of corruption in connection with defense contracting it is a bit ironic.

http://www.reuters.com/article/businessNews/idUSWEB824920080311

Europe Fines Microsoft $1.3 Billion

(http://www.nytimes.com/2008/02/28/business/worldbusiness/28msoft.html)

This fine is of particular importance because not only of Microsoft's stature and size in the commerce, but because it highlights the effect of EU competition law (analogous to American antitrust law) on multinational companies.

The Department of Justice brought suit against Microsoft in United States District Court (U.S. v. Microsoft Corp. (Microsoft I), 87 F.Supp.2d 30, 35 (D.D.C. 2000). The United States' won in District Court, but the Court of Appeals for the D.C. Circuit reversed and remanded, and the DOJ decided not to retry the case (253 F.3d 34, 84 (D.C. Cir. 2001). Conversely the European Commission, which alleged the same conduct as the US case, was far more successful in its prosecution of Microsoft ((OJ 2007 L32/23).

US antitrust law focuses on promoting competition by protecting consumers through enforcement of the Sherman Antitrust Act. By contrast, EU antitrust law focuses on promoting competition by protecting competitors. In the EU, Article 82 of the EC Treaty- which Microsoft was found to violate- prohibits a company from abusing its dominat position so as to adversely affect trade between EU member states. The difference between US and EU antitrust law can be furthered evidenced by examining the GE-Honeywell Merger (see "Old Continent, New deal." 90-SEP ABAJ 51). The merger was approved by U.S and Canadian antitrust regulators but was barred by the European Commission on the groundt that it would reduce aerospace competition in the EU market.

The Microsoft case, and further antitrust cases, raise important implications for multinational corporations. What may be acceptable business practice in one jurisdiction might raise significant antitrust concerns in another. Large companies will have to be weary and pay close attention in current antitrust jurisprudence.

submitted by: JP

This article discusses Congressional disagreement over the ways in which the Asian Development Bank handles issues involving the environment. See http://www.ft.com/cms/s/0/265a9fca-edfd-11dc-a5c1-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ult