Archive for the ‘Trade’ Category

New Free Trade Talks

Monday, May 28th, 2007

So below is part of an article from The Daily Standard I found on Free Trade. Read at least the following if not the entire article and let me know what you think. I know this article is written very pointed for one party vs. the other, but that is not my point. 

SO IT DOES INDEED end with a whimper rather than a bang. Free trade, I mean. Thanks to a president too weak politically to withstand the protectionist surge of a Democratic Congress, the era of ever-freer trade has come to an end. It expired quietly, with few mourners, and some of those who have done it in claiming that the corpse is alive and well.

Susan Schwab, U.S. Trade representative, found it politically necessary to claim that the deal cut by a weakened President Bush and a reluctant Treasury Secretary Hank Paulson with a triumphant Congress “shows the U.S. is not turning protectionist.” I doubt whether her more candid predecessor, Bob Zoellick, could have been persuaded to claim victory in the face of so significant a defeat.

The deal, still subject to congressional approval, is this: The Democrats will agree to approve two minor trade agreements, one with Peru and the other with Panama, in return for a Republican agreement to require its trading partners to adopt a series of environmental and labor market “reforms.” Those “reforms” include the recognition of the right of trade unions to organize workers, the outlawing of most child labor and of workplace discrimination, and a requirement to allow patent protections of pharmaceuticals to lapse overseas when they expire in the United States. We can sue our trading partners if they violate the agreement, and they can sue us. For example, if some country such as Panama decides that we are violating trade union rights here at home, they can bring suit to pressure Congress to change the law

Never mind that these provisions are an invitation to anti-trade forces in America to bring suit against countries deemed to be lax in enforcing these new standards. Or that the agreement opens the door to suits against our own government. More important is what this deal tells about the shift in the balance of political forces that determine future trade policy.” Source The Daily Standard

  1. I think that if we have all of these green laws forced on us, it is counter productive to allow goods to be brought in here that do not have to meet the same standards.
  2. Not sure on Union stuff.
  3. As for Child Labor, I do not understand where the adults are? Are they working too, or just pimping out thier kids. I think that if Kids work there must be a reason, like poverty, lack of education, lack of a goverment that cares at all about their people. But if kids do have to work, then they should be paid as much as adults, seems to me that would employ more adults or help the child break the cycle? I know it is more complicated than that. But I think that the US should not allow products in that were made by children until we know why and that the loser companies and countries have a plan to improve the lives of it’s child workers.
  4. Other countries sueing us does not sound so good, but us sueing them sounds great. Sounds like we could almost use that right as a line item veto to block certain companies from exporting to us while allowing others? That could help tilt the balance. However I’m sure our abilty to sue and complain will be hamstrung by the same people that are supposed to be protecting us.
  5. If we allow goods to be brought in to the US that were produced in ways that we would not allow here at home we are just creating a second class person that it is OK to take advantage of, a second class country where it is OK to pollute, and so on. It is like the idiots that pay a carbon tax when they fly in private jets they can pollute and feel good about it because they have some money to waste on making themselves feel better.
  6. Bottom line for me is we stop importing items that made in ways we don’t allow at home. That will raise the bar. ( I know other things have to happen as well, it is not that simple)

 

Korean FTA news

Sunday, May 27th, 2007

So our own people are at it again. So under the new agreement Korea will be allowed to export textiles into the US duty and tax free, but guess what our textiles going there are still subject to a 10% VAT Tax.

Why do we call these Fair Trade Agreements? Why do our own people keep doing this to us? GOP or DEM, they both do it.

China going overseas

Friday, May 25th, 2007

This is a very interesting article about China’s growth and how they are going to be the investor rather then the investee. Some good points are made here about natural resouces and oil that should make you think about buying a hybrd car soon. Check it out here

Why we have lost three million U.S. manufacturing jobs since Jan 2001

Saturday, May 19th, 2007

I’m no expert by any means in the laws and rules regarding exporting and importing. But I found this article on the National Textile Association’s website. So I will take their word on this. Here is a bit from the article:

Take the yarn spinner I heard from at the Washington meeting. He cannot sell his product in China because even if he can meet the price of locally-produced Chinese yarn (which benefits from the low wages and environmental standards in China and the government subsidies such as free electricity) he is faced with paying the 17% Chinese valued-added tax (VAT) on top of the 10% import duty. He has already paid the full cost of U.S. federal, state, and local taxes, and will have to pay Chinese tax in addition.”

On the other hand, a Chinese company can ship yarn to the U.S. and pay just the import duty (also about 10%). The U.S. has no VAT or other taxes imposed on imports comparable to the income tax, property tax, and other taxes paid by domestic manufacturers. Furthermore, that Chinese company can get a Chinese government refund of the VAT when the company exports to the U.S.”

Source: 

POST-GAZETTE – Res Publica Heads, I Win; Tails, You Lose by David Trumbull April 20, 2007

Buyer Beware

Saturday, May 19th, 2007

You may recall last winter the news stories of  fur lined clothing coming from China was found to be dog hair instead of rabbit, or whatever it was supposed to be. Here is another story from The National Textile Association where it was found that China was exporting 800,000 items that were made of cashmere, however when a Japenese lab tested them there was very little real cashmere in them. All 800,000 items were recalled. Also some products headed for the US and Japan that were made of wool were made of Yak hair.

So there are many reasons products are cheap! Sometimes they are not even real.

Mixed Bag

Thursday, May 10th, 2007

So the oil prices and weak dollar make for some interesting news.  The higher oil prices widen our trade gap, which (among other things) weakens the dollar. The flip side is that with a weaker dollar other countries can afford our goods. So exports to Canada and the EU hit record levels.

Overall our trade gap compared to this time last year is lower. We have to make hay while the suns shines right!

The China Boom is getting stronger.

Monday, May 7th, 2007

We are not the only people in the world hungry for cheap Chinese goods. The Chinese city of Shanghai is growing leaps and bounds fed by the West’s taste for their cheap goods. Look at the following quote from a recent BBC article

“To ensure Shanghai dominates foreign trade, it is building the world’s largest container port on an island 30km offshore, linked by a six-lane bridge.

“I have nothing against them at all, but just remember every time we buy goods from overseas when there was a domestic product we could have bought, we help pave that giant 6 line bridge!

Brazil will import a cheaper, generic Indian-made version of the patented Efavirenz drug.

Saturday, May 5th, 2007

This is happening to Merck who invented the drug. Wow, I did not know this could be done, but read the article here for the details here us a quote from the article:

“Under Brazilian law and rules established by the World Health Organisation, such a licence can be granted in a health emergency or if the pharmaceutical industry abuses its pricing.”

I think we need to be very careful allowing outsiders to set our prices. American and other powerful countries invest the money to make these drugs. I’m not in love with the drug industry, but it is their money they invest to make these drugs. How many drugs has Brazil brought to the market?

Look at the last line of the quote from the article “if the pharmaceutical industry abuses its pricing.” who get to make that call? Like in all things there has to be balance, but if a company can not get a return then why would they risk the investment. I think they adjusted the price to Brazil according to their ability to pay.

I know there is a lot of thoughts about drug companies out there that would take another website to discuss. But in my mind I think Merck got the short end.

The Chinese and Global Warming

Tuesday, May 1st, 2007

OK, I don’t know much about Global Warming and this is not the forum to argue about it. However when you make the connection to industry it is cleay not fair to countries like the US, and Canada to impose harsh rules while ignoring poorer nations that are pooring the same pollution. The article linked here  claims th following:”China’s emissions are just one-sixth of America’s per capita, but the population is so huge that this year the country is due to become the world’s biggest polluter.”

So of course China is really not liking the rules the rest of the world are trying to impose on it.

US manufacturing in surprise jump

Tuesday, May 1st, 2007

Hey good news in the news, don’t see that often. This article has some good figures on American Manufacturing

This is one good thing about a weaker dollar. When our money does not buy as much abroad it makes our American Factories more competitive.