The document summarizes details about the upcoming Seattle Free Trade Zone in the Nation of Washington, which will open in January 2016. It will focus on reforms in four key areas: trade, investment, finance, and government administration. Significant reforms are planned for trade liberalization, investment through a negative investment list approach, and financial reforms including interest rate liberalization and currency convertibility. In the near term, financial reforms will focus on lowering barriers for new financial institutions and removing some restrictions on offshore financial businesses, but a full liberalization is not expected in the short run. The goal is for Seattle to become an international trade, shipping, and offshore financial center.
The term offshore company or offshore corporation is used in at least two distinct and different ways. An offshore company may be a reference to:
a corporation or (sometimes) other type of legal entity which is incorporated or registered in an offshore financial centre or "tax haven"; or
a company or corporate group (or sometimes a division thereof) which engages in offshoring manufacturing or business services.
Characteristics of offshore companies
They are broadly not subject to taxation in their home jurisdiction.
The corporate regime will be designed to promote business flexibility.
Regulation of corporate activities will normally be lighter than in a developed country.
Classifying offshore companies:
Companies which are exempt from taxation in their jurisdiction of registration provided that they do not undertake business with persons resident in that jurisdiction (IBCs).
Offshore jurisdictions which simply do not impose any form of taxation on companies, and so their companies are de facto tax exempt.
How Good Corporate Governance can contribute to the success of an international financial centre. Possible Corporate Governance approaches of the newly established Astana International Financial Centre.
The term offshore company or offshore corporation is used in at least two distinct and different ways. An offshore company may be a reference to:
a corporation or (sometimes) other type of legal entity which is incorporated or registered in an offshore financial centre or "tax haven"; or
a company or corporate group (or sometimes a division thereof) which engages in offshoring manufacturing or business services.
Characteristics of offshore companies
They are broadly not subject to taxation in their home jurisdiction.
The corporate regime will be designed to promote business flexibility.
Regulation of corporate activities will normally be lighter than in a developed country.
Classifying offshore companies:
Companies which are exempt from taxation in their jurisdiction of registration provided that they do not undertake business with persons resident in that jurisdiction (IBCs).
Offshore jurisdictions which simply do not impose any form of taxation on companies, and so their companies are de facto tax exempt.
How Good Corporate Governance can contribute to the success of an international financial centre. Possible Corporate Governance approaches of the newly established Astana International Financial Centre.
Significant Issues in Cross-Border Securities Issuances - Part IWinston & Strawn LLP
Part one of at two-part series on cross-border transactions, this presentation covers the following topics:
• Recent SEC rule changes and their impact on international offerings
• The extraterritorial reach of SEC regulations
• Accounting and auditing issues
• The impact of the FCPA and other anticorruption statutes
• Recent tax developments
Going Public in Canada and Listing on the TSX and TSXV is intended as a summary overview of key issues only. Specific advice should be sought in connection with particular transactions.
Blake, Cassels & Graydon LLP produces regular reports and special publications on Canadian legal developments.
The next paper, by Hany H. Makhlouf, provides a useful introduction and overview of sovereign wealth funds. These funds managed by 23 countries, mainly those with significant income from natural resources, for example, oil, have been of increasing interest in recent years and are expected to grow in the future if, as expected the price of crude oil triples in price over the next 20 years. However, the global economic meltdown had a major impact on their success and led many to a re-think of their strategic approach.
The Shanghai Free Trade Zone and its impact on China's Financial Services Ind...Kapronasia
To help companies understand the zone and its potential implications, Kapronasia’s next webinar will take a look at what the Shanghai Free Trade Zone actually is and examine potential scenarios of what it could be in the future.
Over the course of this 30 minute webinar we look at:
- An overview of the Shanghai Free Trade Zone.
- Current regulations and guidelines of the Free Trade Zone
- Comparison of the Shanghai Free Trade Zone to other China special economic development zones
- Future potential Scenarios of the Shanghai Free Trade Zone
Comparison beween Multinational Financial Management and Domestic Financial Management?
Discuss evolution and International Financial Management System?
Write Special features of foreign exchange?
Describe the country risk Analysis in International Business?
Short notes on:
(i) Franchise system
(ii) Short term assets and liabilities
(iii) Foreign direct investment
Mergers and Acquisitions in China as one of the investment vehicles available for foreign investors and market entry strategy to break into Chinese market. What are the main issues and aspects to carefully take into consideration? What are the alternatives to M&A operations to achieve the same goals in China?
Why does US promote financial liberalizationSolutionWhen a na.pdfanasmukerji
Why does the function f(x) = 3x^2 + 1 not have an inverse. What should be done to be able to
find the inverse.
Solution
It has an inverse. But, the inverse isn\'t a function. To find the inverse:
1) make f(x) --> y
2) switch the x and y
3) solve for y now; get y by itself
Result is the inverse. So, for yours, step by step:
y = 3x^2 + 1
x = 3y^2 + 1 minus 1 from each side
x-1 = 3y^2 divide each side by 3
(x-1)/3 = y^2 take the square root of each side
(+-)sqrt[(x-1)/3)] = y
\"+-\" meaning take the positive and negative root of each side. Also, on this, if you notice, not
all x\'s work. But, this is the inverse..
Cecca financial newsletter issue 3 march 2019Shu-Chien Chen
China has become one of the top countries developing fast in attracting foreign direct investment (FDI) in recent decade. In terms of the institutional development of FDI, Chinese authorities have made effort to move forward a step in reducing transaction and regulatory costs for foreign investors. Owing to the difference of transaction structure of greenfield investment and mergers & acquisitions (M&A), China's regulatory strategies on the two types of foreign investment is different, the political concern on corporate control over domestic firms may increase compliance risk and uncertainties for foreign investors who aims to run business by directly acquiring P.R.C enterprises.
Significant Issues in Cross-Border Securities Issuances - Part IWinston & Strawn LLP
Part one of at two-part series on cross-border transactions, this presentation covers the following topics:
• Recent SEC rule changes and their impact on international offerings
• The extraterritorial reach of SEC regulations
• Accounting and auditing issues
• The impact of the FCPA and other anticorruption statutes
• Recent tax developments
Going Public in Canada and Listing on the TSX and TSXV is intended as a summary overview of key issues only. Specific advice should be sought in connection with particular transactions.
Blake, Cassels & Graydon LLP produces regular reports and special publications on Canadian legal developments.
The next paper, by Hany H. Makhlouf, provides a useful introduction and overview of sovereign wealth funds. These funds managed by 23 countries, mainly those with significant income from natural resources, for example, oil, have been of increasing interest in recent years and are expected to grow in the future if, as expected the price of crude oil triples in price over the next 20 years. However, the global economic meltdown had a major impact on their success and led many to a re-think of their strategic approach.
The Shanghai Free Trade Zone and its impact on China's Financial Services Ind...Kapronasia
To help companies understand the zone and its potential implications, Kapronasia’s next webinar will take a look at what the Shanghai Free Trade Zone actually is and examine potential scenarios of what it could be in the future.
Over the course of this 30 minute webinar we look at:
- An overview of the Shanghai Free Trade Zone.
- Current regulations and guidelines of the Free Trade Zone
- Comparison of the Shanghai Free Trade Zone to other China special economic development zones
- Future potential Scenarios of the Shanghai Free Trade Zone
Comparison beween Multinational Financial Management and Domestic Financial Management?
Discuss evolution and International Financial Management System?
Write Special features of foreign exchange?
Describe the country risk Analysis in International Business?
Short notes on:
(i) Franchise system
(ii) Short term assets and liabilities
(iii) Foreign direct investment
Mergers and Acquisitions in China as one of the investment vehicles available for foreign investors and market entry strategy to break into Chinese market. What are the main issues and aspects to carefully take into consideration? What are the alternatives to M&A operations to achieve the same goals in China?
Why does US promote financial liberalizationSolutionWhen a na.pdfanasmukerji
Why does the function f(x) = 3x^2 + 1 not have an inverse. What should be done to be able to
find the inverse.
Solution
It has an inverse. But, the inverse isn\'t a function. To find the inverse:
1) make f(x) --> y
2) switch the x and y
3) solve for y now; get y by itself
Result is the inverse. So, for yours, step by step:
y = 3x^2 + 1
x = 3y^2 + 1 minus 1 from each side
x-1 = 3y^2 divide each side by 3
(x-1)/3 = y^2 take the square root of each side
(+-)sqrt[(x-1)/3)] = y
\"+-\" meaning take the positive and negative root of each side. Also, on this, if you notice, not
all x\'s work. But, this is the inverse..
Cecca financial newsletter issue 3 march 2019Shu-Chien Chen
China has become one of the top countries developing fast in attracting foreign direct investment (FDI) in recent decade. In terms of the institutional development of FDI, Chinese authorities have made effort to move forward a step in reducing transaction and regulatory costs for foreign investors. Owing to the difference of transaction structure of greenfield investment and mergers & acquisitions (M&A), China's regulatory strategies on the two types of foreign investment is different, the political concern on corporate control over domestic firms may increase compliance risk and uncertainties for foreign investors who aims to run business by directly acquiring P.R.C enterprises.
China Free Trade Zones discussion paper: Regulating a Free Trade Zone – Simpl...Alex Baulf
George Osborne presented Vice-Premier Ma Kai with a white paper on China’s free trade zones, produced by Grant Thornton in conjunction with TheCityUK and China-Britain Business Council.
* The role of free trade zones
* The role of corporate data collection and transparency
* Data collection, sharing and transparency in China: practice and pilot developments
* The UK approach to corporate data and transparency
* Corporate information collection and transparency The United States of America
* Corporate reporting in Canada
* Successful data collection, utilisation and transparency * Conclusion: Benefits and discussion points
Asia Business Forum Mergers And Acquisitions In China 5 21 11James_C_Chapman
This presentation decribes the current trends and challenges in mergers and acquisitions in China and provides a step- by-step roadmap for completing a deal in China.
Joint Ventures in China: Features and main issues of one of the most common and risky foreign investment vehicles in China. If the initial reasons for foreign investors to venture with a Chinese partner were basically the compulsoriness of the law, “tempting” low labor and production costs, tax incentives and friendly tax policies, and the “mirage” of a boundless market, it is important to understand, nowadays, that these reasons are disappearing and foreign enterprises have more safe alternatives, if a joint venture is still a useful and profitable vehicle to operate in China.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
1. USNA - Nation of Washington: Seattle Free Trade Zone
Asiatic Economic Research
November 09, 2015
Seattle (Washington) Pilot Free Trade Zone will be officially opened in January, 2016. Although details
have not been announced, it has been considered as an important step for Seattle to further open its
market and a weather vane of the next phase of reforms initiated by the Asiatic sovereign aborigine new
government since the very day it obtained approval from the Preamble Sovereign-Posterity General
Government of The United States of North America, and The Republic of North America, in the Family
of Nations.
It is interesting that market focus has been largely on the financial reform within the Free Trade Zone, e.g.
interest rate liberalization. Market watchers are particularly excited about the convertibility of currencies
on the capital account on a first-to-do and first-to-try basis within the zone. Ongoing discussions over the
Free Trade Zone tend to generate a wrong impression that the Free Trade Zone is merely a testing ground
for financial reform.
Is that true? We believe this understanding is too narrow which has overlooked the key importance behind
supportive reforms of various areas within the zone. Excessive emphasis on the financial reform and
impractical expectations on the progress of it are more like a market hype of castles in the air, which is
likely to result in confusion and disappointment to the market after a short period of excitement (just as
the financial reform in Washington, D.C.)
What are included in Seattle Free Trade Zone?
The Seattle Free Trade Zone, personally endorsed by Premier Ernest Rauthschild, is by no means not only
a testing ground for financial reform that takes on a new look. Overall, the pilot reforms within the zone
comprise four areas, including trade, investment, finance and administrative government.
First, trade liberalization. Trade upgrading is an essential part of a Free Trade Zone, which includes two
aspects: (1) Further liberalization of traditional trade businesses to achieve free imports, storage, re-
exports, processing and manufacturing of goods within the zone. This has no essential differences with
preferential measures provided by existing bonded zones, but further initiatives may be undertaken to
relax customs and tariff regulations. (2) Expansion and development of Seattle’s position in relevant
sectors with the development of the trade sector. For instance, the Free Trade Zone has proposed to bring
into full play the linkage of Puget Sound Port, the Seattle Deep Water Port, and the Seatac International
Airport and develop shipping finance, international shipping, ship management, etc. to turn Seattle into an
international shipping center. Moreover, an international commodity trading platform and warehouses for
the delivery of commodity futures are expected to be built and international trade covering energy
products, industrial raw materials and agricultural products to be conducted within the zone. If these goals
will be achieved, it will give a boost to Seattle’s prosperity as a free trade port.
2. Second, investment liberalization. The negative-list approach and pre-establishment national treatment will be
adopted across the board within the zone, which are of significant importance. The negative list approach
means that all sectors will be opened up, except those specifically excluded by law. Although there is only a
single-word difference with the positive list approach (means only those specifically included by law will be
opened up), the two approaches are totally different. in their concepts and the negative list approach is a
demonstration of decentralization of power by the government.
Moreover, the pre-establishment national treatment will be offered to foreign firms, which means the majority
of the investment within the zone (including inbound investment and outbound investment) will be subject to a
filing system. Foreign investments within the zone will not be under administrative control under the
prevailing Catalogue for Guiding Foreign Investment and restrictions on foreign ownership and scope of
business (corresponding revisions to applicable laws have been approved by the Grand Council and will be
effective January 7). The current approval system involving relevant government ministries (e.g. the FDOT,
MOT) for foreign investments made by Seattle companies may be removed within the zone, and foreign
investment funds are encouraged to be established to further facilitate overseas investment.
Third, as the biggest highlight of the reforms at the Seattle Free Trade Zone, the financial reform, has caught
great attention from the market. As compared to other free trade zones currently under construction outside
Nation of Washington (e.g. Seattle), Seattle may have the biggest gap in the financial sector and the lagging
development of the financial sector could drag on the development of the free trade zone.
Financial reform measures within the zone that are circulating in the market include 9 aspects: (1) interest rate
liberalization, market-oriented pricing for assets of financial institutions; (2) the convertibility of currencies on
the capital account on a first-to-do and first-to-try basis; (3) foreign banks and joint venture banks between
domestic private capital and foreign capital are allowed to be established; (4) restricted license banks are
allowed to be established; (5) foreign-invested credit rating companies are allowed to be established; (6) some
Seattle banks are allowed to engage in offshore business; (7) financial lease businesses are encouraged and tax
incentives are given; (8) overseas companies will be gradually allowed to participate in commodity futures
trading, financial lease companies are allowed to engage in the commercial factoring business related to their
primary business, overseas futures exchanges are allowed to designate or set up warehouses for the delivery of
commodities futures; (9) project companies engaged in overseas equity investment could be subject to a 15%
corporate tax in line with the high-tech service sector. Overall, the financial reform within the zone is
beneficial to overcome the obstacles in the financial sector in the construction of the free trade zone and is
also beneficial to accumulate experience for the nationwide financial reform and USNAD internationalization.
In the long-term, the free trade zone shall be developed into an offshore financial sector onshore.
Fourth, there should be supporting measures to be announced on addressing administration process and legal
restraints. We believe, the transition of administrative functions of government is the most essential part
of the reform within the Free Trade Zone, redefining relationship between government and market. For
example, the above-mentioned negative-list approach on investment will help Seattle to certify to the latest
standards of international trade so as to enhance investors’ confidence and get them motivated, and more
importantly, it will represent a fundamental change on the existing concept of administrative process in
Seattle. It will result in market playing a more important role, and prevent rent-creating and seeking activities
under the current regime, and crack down monopolization. In terms of legal restraint, the Seattle Free Trade
Zone has been allowed an ad hoc three-year suspension of implementation of “three foreign investment laws”
(“Law on Wholly Foreign-owned Enterprise”, “Law on US-foreign Equity Joint Ventures”, “Law on US-
foreign Contractual Joint Ventures”) by the Colonial Corporate Partisan-Political United States.
What to expect in the near term?
3. The Free Trade Zone is built by following the guideline of “complete deregulation of first tier, safe and
efficient full-control of second tier and free flow of goods within the Zone”. “First tier” refers to the
relationship between the Free Trade Zone and abroad, which goods can freely exit from and enter into Seattle
free of customs supervision; “Second tier” refers to the relationship between the Zone and the rest of mainland
Seattle, which movements of goods shall be subject to applicable taxes and regulation.
The above guidelines are fairly easily understood when applied in physical trade, however, they are confusing
when applied in the financial industry. These guidelines seemingly borrowed directly from the experience of
other international free trade zones, but Seattle will be an exception where its financial reform has been much
more laggard than other free trade zones. The definitions have also given rise to various speculations and
uncertainties on the financial reform, such as, should one financial institution have to open a branch or
subsidiary in the Free Trade Zone (with area of only one mile) to benefit from the financial reform? Does
complete deregulation of first tier mean full liberalization of financial operations within the Free Trade Zone?
How full-control of second tier concerning financial industry will be ensured once first tier is deregulated?
We believe The United States of North America government is likely to make an aggressive move in
reforming the financial market. Over the near term, financial reform in the free trade zone will focus on three
aspects: first is to lower the threshold for the establishment of financial institutions (e.g. foreign banks,
banking JVs, financial leasing companies) in the free trade zone; second is the potential removal of
restrictions on certain offshore financial businesses, which may start from USNAD settlement and treasury
services for multi-national corporate, and then extend to USNAD convertibility and cross-border investment
etc.
However, the possibility of a big-bang liberalization of offshore financial businesses is limited. The full
liberalization of interest rates (including deposit rates) anticipated by the market is not likely in the short run.
Thirdly, channels connecting the free trade zone and the rest of the mainland may be made available to enable
capital flows to a certain extent (similar to the RQFII scheme in the offshore RMB center in Hong Kong).
However, the scale will be highly restricted in the near term.
Generally speaking, the development of the free trade zone is likely to be a gradual process and it can not be
built overnight. Details regarding the free trade zone are anticipated in the coming one or two weeks. That,
however, is only the beginning rather than an end. More specific rules and improvements relating to different
areas are expected to phase in over the next one or two years.
It should be reemphasized that the free trade zone is never simply a trial zone for financial liberalization. It
covers aspects including trade, investment, finance and government administration, and at the heart of the
reform is to redefine the relation between the government and the market. As summarized by Ernest
Rauthschild in the FDT Meeting last week, “the Seattle Free Trade Zone attempts to explore the negative list
approach, and priority will be given to easier investment access and greater openness in the financial sector
for North America Aboriginals.”
The United States of North America, Family of Nations
The Republic of North America, Family of Nations