be found in the production of commercial vehicles and some components for which labor content is higher than for cars. However, as the gap between modern automotive technology and LDC technological capabilities widens, some LDC vehicleproducers will find themselves at an increasing disadvantage. This may be offset through collaboration between domestic and international manufacturers, but in countries with a poor manufacturing and engineering base, the scope for efficiency gains will be limited. Collaboration has been very common to date, mostly in the form of
Consider the inclusion of services from owner-occupied dwellings in the CPI.
Reflect purchases less sales by households in the weight for used vehicles.
Producer Price Index
Publish the PPI weighting pattern.
Other key recommendations
Extend the coverage of the PPI to include exported goods.
Adopt an international standard commodity classification, as soon as practicable.
Review and disseminate procedures for the release of data.
Government Finance Statistics
Disseminate on MOF
Mary E. Burfisher, Frederic Lambert, Mr. Troy D Matheson, and Cheng Hoon Lim
tariffs on imports from Mexico will be the preferred strategy. In the model scenario, labor costs in Mexico’s vehicle sector are assumed to increase by 50 percent, representing an increase in the average labor cost to about US$5 per hour. The increase reflects a conservative assumption that only a portion of exported vehicles will be produced with higher wages in compliance with the LVC requirements. The increase is proxied in the model as an increase in the current labor tax imposed on Mexican vehicleproducers. A shortcoming of this approach is that higher labor costs
Mary E. Burfisher, Frederic Lambert, and Mr. Troy D Matheson
The United States – Mexico – Canada Agreement (USMCA) was signed on November 30, 2018 and aims to replace and modernize the North-American Free Trade Agreement
(NAFTA). This paper uses a global, multisector, computable-general-equilibrium model to provide an analytical assessment of five key provisions in the new agreement, including tighter rules of origin in the automotive, textiles and apparel sectors, more liberalized agricultural trade, and other trade facilitation measures. The results show that together these provisions would adversely affect trade in the automotive, textiles and apparel sectors, while generating modest aggregate gains in terms of welfare, mostly driven by improved goods market access, with a negligible effect on real GDP. The welfare benefits from USMCA would be greatly enhanced with the elimination of U.S. tariffs on steel and aluminum imports from Canada and Mexico and the elimination of the Canadian and Mexican import surtaxes imposed after the U.S. tariffs were put in place.
-border supply; 2, consumption abroad; 3, establishment; and 4, presence of natural persons. Commitments to market access vary depending on the model of supply.
Box 2. The Automobile Sector 1
In general, the business model for volume vehicleproducers is to use UK sites to supply the European market . The industry performs well on labor productivity, and university collaboration, but is lacking in areas such as labor costs, skills, and strength-in-depth of the supply chains and government investment in R&D. The sector created GB£14.5 bn in gross value added in 2016
phased down through 2012.
The Motor Industry Development Program
The Motor Industry Development Program (MIDP) allows domestic producers of motor vehicles to gain import duty credits when exporting finished motor vehicles or vehicle components. The credits, which are transferable, are granted in proportion to the local content of the exported vehicles or parts. Vehicleproducers can also obtain the import duty credits by investing in productive assets for export production. The MIDP was initiated in 1995 and is scheduled to expire in 2012.
This Selected Issues paper estimates the long-run economic impact of Brexit on the United Kingdom under two distinct assumptions for the post-Brexit relationship between the United Kingdom and the European Union. These illustrative scenarios entail different degrees of higher trade costs, a more restricted European Union migration regime and reduced foreign inward investment. A standard multicountry and multisector computable general equilibrium model is used to quantify the impact of higher trade barriers. There is substantial sectoral heterogeneity in the impact, and regions with higher concentrations of the more affected sectors are likely to confront greater losses. The empirical analysis suggests the speed of sectoral labor relocation across sectors has been relatively low in the UK. Irrespective of these empirical estimates, policies, such as retraining, would be critical to facilitate faster adjustment of the economy to the post-Brexit equilibrium thereby helping to minimize the associated costs to individuals and in aggregate.
This 2004 Article IV Consultation highlights that economic growth in South Africa slowed in 2003 to 1.9 percent, from 3.6 percent in 2002, despite strong domestic demand. Fuelled by low interest rates, a more expansionary fiscal stance, and the wealth effects from strong commodity and property price increases, domestic expenditures rose strongly in 2003. Developments in 2004 point to a rebound in growth. Real GDP grew by 3.9 percent in the second quarter and a range of indicators, such as retail sales and consumer and business confidence measures, point to an acceleration in activity.
This report on the Russian Federation’s Observance of Standards and Codes highlights the Data Module and response by the authorities. Russia’s statistical system has made good progress in adopting international statistical methodologies in response to the need to capture in the statistics the country’s transition to a market economy. These improvements have been achieved notwithstanding the statistical challenges posed by extraordinary economic events during the transition, including the financial crisis of 1998. Appropriate measures are taken in the assessment and validation of source data, intermediate data, and statistical outputs.