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At least they are doing something good for world trade... imperiling trade talks.
As seven years of global trade talks approach another climax, China is emerging as a central player — and coming under heavy criticism from the United States and others for its tactics.
Here is their strategy. Everyone else should cut tariffs, subsidies, etc. while China keeps its border taxes, currency misalignment, tariffs and subsidies.
Funny thing is, this is not new. The U.S. Trade Representatives office used to say,
"What a great idea! We're free traders and proud of it. Let's sign a trade deal. We'll drop all our barriers, you can sell your stuff in our markets, and you promise to start considering whether to begin dropping your barriers just a little bit sometime in the future when you feel the time is right. But we're free traders, so we'll go first. Congress will approve it because they'll never read it."
But our USTR has a Sternly. Worded. Response. (SWR©) which should make us all feel better.
On Monday in Geneva, Washington accused China and India of throwing the round of talks “into the gravest jeopardy of its nearly seven-year life.” India was criticized for rejecting the package laid out by Pascal Lamy, the director general of the W.T.O., and China was taken to task for backing out of terms it committed to last week.
“We are very much concerned about the direction that a couple of countries are taking,” the United States trade representative, Susan C. Schwab, said. “I am very concerned it will jeopardize the outcome of this round.”
Yes. Issue SWR's and then give away the U.S. economy again. Incentivize the multinationals to roam the world in search of the best subsidies, currency values and tax rates; grant other countries market access to our rich consumer market in return for theoretical - but illusory - access to their market consisting of poor people; and demonize those that criticize sub-par trade deals.
We need to halt new deals and do a re-evaluation. We cannot plod on like this.
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