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A new agreement on trade and climate change

Published 27 August 2024

In early July, New Zealand, Costa Rica, Iceland, and Switzerland signed the Agreement on Climate Change, Trade, and Sustainability (ACCTS). Meanwhile, the EU's move to raise tariffs on Chinese EV imports while reducing those on Tesla has escalated trade tensions, prompting China to investigate EU dairy imports. Economic security is reshaping national security strategies. Check out what we have been reading.

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Regulating the climate-trade nexus

New Zealand’s Ministry of Foreign Affairs and Trade maintains a database of key documents related to ACCTS negotiations. Wendy Cutler and Jane Mellsop, in Nikkei Asia, tell the world to take note of the new deal. William Alan Reinsch of the Center for Strategic and International Studies sees a small sign of life on the climate-trade front.

Mentioned publications

Agreement on Climate Change, Trade and Sustainability (ACCTS) – New Zealand Ministry of Foreign Affairs and Trade, August 24, 2024 (last accessed)
New Zealand maintains a database with public information about a new agreement on trade and climate change.
World should take note of a new trade and climate change deal – Wendy Cutler and Jane Mellsop, Nikkei Asia (Op-ed), July 31, 2024
Cutler directs attention to the Agreement on Climate Change, Trade and Sustainability (ACCTS).
A Small Sign of Life on the Climate-Trade Front – William Alan Reinsch, Center for Strategic and International Studies, August 12, 2024
CSIS provides context for understanding the importance of the ACCTS agreement.

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New salvos in the trade war

As it prepares to impose higher tariff rates on EVs imported from China, the EU decides to lower a proposed tariff on Tesla, per the New York Times. In response to the EU’s tariffs, China announces an investigation into EU dairy imports, reports Bloomberg. China is imposing export restrictions on antimony and CSIS explores the impact on US national security.

Mentioned publications

Europe Slashes Tariffs for Tesla Vehicles Made in China – Melissa Eddy and Jenny Gross, The New York Times, August 20, 2024
The New York Times reports on the EU decision to impose a lower tariff rate on Teslas made in China.
China Targets EU Dairy in Probe as Trade Tensions Intensify – Bloomberg, August 21, 2024
Bloomberg reports on China’s review of EU subsidy programs for dairy products.
China’s Antimony Export Restrictions: The Impact on U.S. National Security – Gracelin Baskaran and Meredith Schwartz, Center for Strategic and International Studies, August 20, 2024
CSIS summarizes the impact of China’s antimony export restrictions on US industry.

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The scope of national security

Daniel Drezner in Foreign Affairs explains how everything became national security, while Kathleen Claussen and Timothy Meyer in Just Security explore how economic security is reshaping Presidential power. Dr. Lúcio Vinhas de Souza for CSIS compares the EU and US approaches toward an economic security strategy. Bloomberg reports on how ports are becoming pawns in geopolitics. Agathe Demarais in Foreign Policy catalogues the winners from geopolitical-driven de-coupling.

Mentioned publications

How Everything Became National Security – Daniel Drezner, Foreign Affairs, September/October 2024
Drezner argues that when everything is "national security" nothing can be a national security priority.
How ‘Economic Security’ is Re-shaping Presidential Power – Kathleen Claussen and Timothy Meyer, Just Security, July 16, 2024
Claussen and Meyer argue for Congress to take back authority over foreign commerce.
Developing an Economic Security Strategy: EU and U.S. approaches – Dr. Lúcio Vinhas de Souza, Center for Strategic and International Studies, August 21, 2024
The author compares and contrasts EU and US policy approaches toward economic security.
A $2 Trillion Reckoning Looms as Ports Become Pawns in Geopolitics – Bloomberg, August 20, 2024
Bloomberg writes that the world’s ports are increasingly viewed as geopolitically important assets.
The Winners From U.S.-China Decoupling – Agathe Demarais, Foreign Policy, July 15, 2024
Foreign Policy enumerates five ways economies are winning from US-China "de-risking".

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Responding to economic coercion

China has used economic tools to coerce economies perceived to work against its interests. Reuters reports that targets of economic coercion can call a team at the US State Department for help. Wendy Cutler and Shay Wester of the Asia Society Policy Institute find lessons in Lithuania’s experience with economic coercion. CSIS expands the tool kit to counter China’s economic coercion.

Mentioned publications

China has threatened trade with some countries after feuds. They’re calling ‘the firm’ for help – Didi Tang, Reuters, May 27, 2024
Reuters reports that the US State Department has a team for helping economies counter China’s economic coercion tactics.
Resilience & Resolve: Lessons from Lithuania's Experience with Chinese Economic Coercion – Wendy Cutler and Shay Wester, Asia Society Policy Institute, April 17, 2024
ASPI provides a case study in resisting economic coercion.
Expanding the Tool Kit to Counter China's Economic Coercion – Cynthia Cook, Gregory Sanders, Alexander Holderness, John Schaus, Nicholas Velazquez, Audrey Aldisert, Henry H. Carroll, and Emily Hardesty, Center for Strategic and International Studies, May 6, 2024
CSIS posits that sanctions may be the best tool for combatting economic coercion.

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Trade agreements

Dmitry Grozoubinski teaches readers how to understand trade agreements and the public statements government officials make to sell them to the public.

Mentioned publications

There Are No Free Lunches in Trade Deals – Dmitry Grozoubinski, Foreign Policy, August 11, 2024
An excerpt from Grozoubinski’s new book explains why politicians lie about trade.

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