Categorized | Trade

Obama State of the Union: More Exports

Obama’s state of the union address contained the first words on trade policy that we’ve heard.  Unfortunately, it was Clinton-Bush redux.  More exports.  

Third, we need to export more of our goods. Because the more products we make and sell to other countries, the more jobs we support right here in America. So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support 2 million jobs in America. To help meet this goal, we’re launching a national export initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security.

We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. And that’s why we’ll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia.

Endorsement of the pending Free Trade Agreements.  Endorsement of Doha.  Never mind that the "export opportunity" mentality is really an offshoring result.  Sounds good, but the data are horrible.

Enforcement of existing rules is good.  But you can enforce to perfection and still have a bad problem.  

Other countries simply don’t drop their barriers.  Nothing on currency, value added taxes, state managed economies, and the hundreds of tricks other countries use to keep our products out.  Yet we open our borders in a "we’ll lead and then they’ll follow" bumbling/failed strategy.

Not good news.  We need a totally new approach. 

One Response to “Obama State of the Union: More Exports”

  1. Dr Bob Goldschmidt says:

    It’s pretty obvious when were being had with respect to free trade. How about instituting a reciprocity rule where, when two countries compete with similar products, the ratio of exports to imports cannot exceed 10 or be less than 0.1. Further all imports of a product would be subject to the same duties and rules.

    This would open up Korean and Japanese auto imports, for example.

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