The Soapbox

Hoo05Dave

Joined: 05/07/2007 Posts: 1643
Likes: 1359


There are right ways, and wrong ways to go about correcting grievances.


The US has historically had great success in complaints mediated through the WTO yet this administration has eschewed such responsible avenues for dispute settlement in favor of recklessly ratcheting trade restrictions. Similarly, one sticking point in NAFTA "renegotiation" is the Chapter 19 trade dispute panel.

There is a legit complaint that China is still classified as a developing nation under WTO rules, and is therefore entitled to certain protections they've long since outgrown. But that's not the focus of this protectionist push. Neither is the theft of intellectual property, though it occasionally receives lip service.

The primary ire of this administration is the trade balance (more specifically the balance of physical goods), as though trade is a zero-sum game to "win". It's completely nonsensical, ignoring trade in services, investment, and benefits from cheaper imports.

And it's because we have no economic argument in favor of these tariffs that the Trump admin is pursuing all this through a "national security" loophole.

Even more significant than international mediation are free trade agreements. Those are the most effective means to reducing foreign barriers. For example, the TPP was set to cut tariffs on US goods in SE Asia, and it had rules to level competition with respect to workers' rights / wages. That's not even getting into the influence we'd gain in the region as a major trading partner.

Unfortunately, every free trade agreement we have has faced criticism from Trump as a bad deal. A point of agreement between his base and the Bernie Sanders socialist wing.

Firing first with tariffs, and asking questions later fits the pugilistic nature of the President, providing a gratifying sense of sticking it to those other guys, however it will lead to worsening fortunes for everyone despite assurances to the contrary.

The "big picture" is what this means long term in decreased investment, smaller markets, and higher costs. The short sighted view in this debate is pointing to the current strong economic numbers and proclaiming that this protectionist outlook is a good one. Tariff brinkmanship is bad policy no matter how one frames it. Supporters of that tactic will eventually have to own the consequences.





(In response to this post by Charleston Cav)

Posted: 07/10/2018 at 9:47PM



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Current Thread:
 
  
Trade wars are good, and easy to win -- Beerman 07/10/2018 5:51PM
  10 year manufacturing employment high is winning ** -- TomKazanski 07/11/2018 07:32AM
  Citation please ** -- Beerman 07/11/2018 09:18AM
  And yet he's correct. (link) -- Hoodafan 07/11/2018 10:21AM
  LOL, and dont forget those liberal farmers. ** -- Guy LeDouche 07/11/2018 07:27AM
  I wish it were true -- fishhoo 07/10/2018 9:47PM
  Its been big in South Carolina news -- Charleston Cav 07/10/2018 8:23PM
  Hell yeah, suck it up snowflakes. -- hooshouse 07/10/2018 9:07PM
  Lmao ** -- hooyorkcity 07/10/2018 8:53PM
  Big thinkers? -- Beerman 07/10/2018 8:41PM
  Soybeans are a major export to China -- NJHoo 07/10/2018 8:17PM
  Peter Thiel on Trade War with China -- 132863Hokie 07/10/2018 7:40PM
  My real surprise from that video was -- BocaHoo91 07/11/2018 07:05AM
  Think it was because his audience in attendance ** -- 132863Hokie 07/10/2018 9:25PM
  Where was he speaking? Missed that part.** -- hooyorkcity 07/10/2018 9:29PM
  The Economic Club of New York ** -- 132863Hokie 07/11/2018 03:53AM
  And, of course ... -- Beerman 07/10/2018 7:11PM
  What's weird is... -- Beerman 07/10/2018 7:09PM
  US is never considered in the top ten -- KCHoo 07/10/2018 8:29PM
  Site it ** -- Charleston Cav 07/10/2018 8:43PM
  You mean cite? -- KCHoo 07/10/2018 8:52PM
  I just checked it out in investopedia.com -- Charleston Cav 07/10/2018 8:55PM
  You do not buy it because -- VaTechie 07/10/2018 10:35PM
  Did your subscription to USA Today expire? ** -- HootiesJohnson 07/10/2018 9:03PM
  Double post -- KCHoo 07/10/2018 8:50PM

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