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Trade in tax has a profound impact on all aspects of the trade data, including the goods trade balance.
cfr.org/article/when-t…
cfr.org/article/when-t…
American pharmaceutical companies are quite profitable. But those profits often don't stem from manufacturing the active ingredients that make a medicine work inside the United States ... 
I suspect -- but cannot (yet) prove -- that the large rise in the U.S. trade deficit in pharmaceuticals in 2018 reflects the incentives created by the tax reform.
Am glad that the IMF is taking these issues seriously. There is still more to do. Try, for example, explaining the bilateral U.S. services trade balance without reference to profit shifting ...
blogs.imf.org/2019/03/25/cor…
blogs.imf.org/2019/03/25/cor…
