Protectionist or Pro-Free Trade?
Is President Obama a protectionist or pro-free trade? Both, according to a recent Los Angeles Times editorial. President Obama has been quoted as saying more jobs are created and costs are lowered in a free trade economy. But, the recent Stimulus plan angered many with the ‘Buy American’ clause attached to the plan.
Recent news about the large tariff placed on China for its tire imports, and refusing to allow Mexican truck drivers into the U.S. has also raised eyebrows to protectionism. But trade issues is not a new problem and not just in the United States.
Earlier this month, the WTO listed 91 potentially protectionist measures taken by G-20 members between the April summit in London and the end of August, and Global Trade Alert, a trade watchdog group affiliated with the World Bank, puts the number at 121 since November.
The position on protectionism or opening free trade even more will be answered in a matter of time. The G-20 summit began last week and will discuss these issues. President Obama will have the opportunity to make his stance on protectionism or pro-free trade more clear.
To read the full editorial, click here.
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China and the U.S. Continue To Battle Out Its Trade Differences
The Wall Street Journal reports that China has appealed to the World Trade Organization (WTO) over its August ruling on entertainment imports, such as Hollywood dvd releases and downloadable music from Apple, Inc. Reports claim that their attempt reflects the recent trade tensions between the U.S. and China because of the increased tire tariffs and chicken import investigation.
China appeals to WTO on grounds of ‘public moral’ stating that it must protect its citizens from Westerized media.
“…China must now prove its trade restrictions are necessary to protect public morals,” says Brendan McGivern, a Geneva-based trade lawyer for White & Case LLP. “It will be a difficult argument to make.”
The WTO’s August ruling required Beijing must stop forcing U.S. artists and production companies to go through state-controlled distributors.
To read the full article, click here.
Government Tense as Claims of Protectionist Rises
The Associated Press reported that as the G-20 summit will commense next week in Pittsburgh, many governments are tense with new report issued claims of more evidence of protectionism.
“The protectionist juggernaut shows no sign of slowing down,” the organization said in a report published Friday. “Almost every nation has been harmed by these measures.” And, the report said, “Another six months of protectionist measures are in the pipeline already.”
The recent US – China argument against the tire tariff and the chicken feet have only raised awareness to the other G-20 members, who have promised to not talk about this issue at the Summit.
To read the full article, click here.
Global Trade Talks in India Highlight the Countries Most Responsible For the Economic Crash
The New York Times reports that many leaders have gathered in India today to open discussions on the global trade and the world economy. India and the United States are most responsible for the economic collapse this last year, so this meeting will provide an opportunity to discuss outstanding trade issues and prepare for the upcoming G – 20 Summit in Pittsburgh later this month. The most talked about topic probably on their minds is the Doha Development Round negotiations.
The Indians are “sending a very strong signal internally and externally” of their commitment, said Catherine Ashton, the European trade commissioner, who negotiates for the 27 countries in the European Union.
India, with it’s newly appointed Prime Minister hope to express its interest in the Doha negotiations, since it got the reputation last year of standing in the way.
Another concern is the United States. With so many hot domestic issues, such as healthcare and climate change. Global trade has not been on it’s priority. Furthermore, there has been little support in Congress for the Doha Develoment Round agreement.
“We all know Ron [Kirk, U.S. Trade Representative] has very little domestic lobby support for the Doha round,” she said. “There is a sense in which this belonged to the previous administration, and there is not a strong lobby in favor.”
In November 2001, The Doha Development Round was created. It’s a deal would involve developed countries’ opening its markets for farm produce and cutting subsidies for agriculture. In return, the wealthier developing countries, like India and Brazil, would cut industrial tariffs. Proponents say this would help lift poorer countries out of poverty by increasing global trade.
To read the full article, click here.