The Causes of Currency Turmoil in the Emerging Economies
Many emerging economies and developing countries are facing strong economic headwinds. Currency depreciation pressure is mounting for some countries. Argentina and Turkey are coping with currency crises, massive capital outflows and hyperinflation. To say their crises are completely self-inflicted is not correct. The exogenous shocks have played an important role. Other emerging economies and developing countries as a whole should be vigilant and try to defend their currencies and maintain financial stability. It is also high time to try to fix the flaws in the international financial system.
Exchange of Information: Indian Experience, Developing Country Implications
Exchange of tax-related information between countries is a critical tool for addressing information asymmetries between governments and taxpayers that facilitate tax evasion/avoidance. However, the existing system of information exchange has been essentially designed and implemented by the OECD, without the participation of developing countries. This policy brief thus discusses India’s experience with implementing information exchange for tax and other purposes, with lessons being drawn for other developing countries grappling with base erosion and profit shifting.
US Claims under Special Section 301 against China Undermine the Credibility of the WTO
The US action to place China in the Special 301 ‘Priority Watch List’ is unjustified and in contravention to the WTO rules. The claims made against China are based on standards self-determined by the Office of the United States Trade Representative (USTR), not on international standards. This is an example of a systemic problem that requires a concerted response. WTO members should unite to firmly oppose the imposition of unilateral measures that undermine the multilateral trading system and the credibility of WTO as a ruled-based institution.
US’ Section 301 Actions: Why They are Illegitimate and Misguided
This research paper examines the US’ Section 301 unilateral actions against China, stemming from the US’ concerns over China’s ambitious industrial policies and its rapid technological advancements. It outlines the accusations of the US regarding China’s conditions for technology transfer and what the US sees as overly intrusive Chinese government involvement in investments. It looks in detail at why the US’ actions are in fact illegitimate and misguided. (more…)
US’ Section 301 Actions are Illegitimate and Misguided
On 23rd August, the US Administration imposed yet another set of discriminatory tariffs on China under its Section 301 Trade Act covering US$16 billion of its imports from China. This is in addition to the additional tariffs imposed on 6 July 2018 on US$34 billion of its imports from China. According to the US, these actions are supposedly because of China’s unreasonable or discriminatory practices relating to technology transfer, intellectual property and innovation.
The International Debate on Generic Medicines of Biological Origin
The debate on generic medicines is not new. What makes it different today is that attacks levelled against biological generic products are couched in even more “technical” and abstruse language. The high price of biological drugs stems mainly from the introduction of barriers to the entry of generics into the market. In any debate on the feasibility of producing biological generic products identical to the ‘original’ ones, it should be made clear that what are at stake are not identical products but therapeutic equivalents.
Interaction of Transfer Pricing & Profit Attribution: Conceptual and Policy Issues for Developing Countries
Till 2010, model tax conventions treated profit attribution to permanent establishments and transfer pricing under different articles, and profit attribution under Article 7 allowed sales to be taken into account both in the direct accounting method as well as the indirect apportionment method. However, the revised Article 7 in the 2010 update of the OECD Convention approximated profit attribution with transfer pricing and omitted the option of apportionment, thereby undermining sales and contributions made by market jurisdiction to business profits. When a tax treaty retains Article 7 based on the UN Convention or the earlier OECD Convention, Contracting States can take sales into account and also opt for apportionment. Developing countries need to fully understand these implications of Article 7 in their tax treaties, and opt for informed choices for transfer pricing and profit attribution to permanent establishments, including apportionment that takes sales into account.
Major Outcomes of the 71st Session of the World Health Assembly of WHO
The 71st session of the World Health Assembly (WHA) of the World Health Organization (WHO) took place from 21 to 26 May 2018 in Geneva, Switzerland. The Assembly adopted several decisions and resolutions including the adoption of the General Programme of Work (GPW) of WHO for the period 2019-2023, as well as decisions on addressing access to medicines and vaccines and their global shortage, and the recommendations of an overall programme review of the WHO Global Strategy and Plan of Action on Public Health, Innovation and Intellectual Property (GSPA-PHI). (more…)
Acceso a medicamentos: experiencias con licencias obligatorias y uso gubernamental – el caso de la Hepatitis C
El acceso a medicamentos está fuertemente condicionado por su precio y por los mecanismos de financiamiento que pueden aplicarse en cada país. […] Un factor determinante en la fijación del precio de los medicamentos es el grado de competencia existente en una particular clase terapéutica, la que a su vez es influenciada por la existencia o no de derechos de propiedad intelectual, como patentes de invención.
Collaboration or Co-optation? A review of the Platform for Collaboration on Tax
The Platform for Collaboration on Tax (PCT), launched in April 2016, is an effort to intensify cooperation on tax issues among the staff of the OECD, IMF, World Bank and the United Nations. The PCT’s stated objectives include the production of joint outputs, strengthening interactions between standard setting, capacity building and technical assistance and sharing information. PCT has since produced toolkits on issues such as tax incentives, transfer pricing, and taxation of offshore indirect transfers. The PCT also held its first global conference in February 2018 at the UN where a concluding ‘conference statement’, negotiated among the four secretariats, was produced.