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Trade agreements should serve U.S. trade policy. Trade
agreements should not BE trade policy. The current "free trade agreements" are obstructing the
modernization of U.S. trade and economic policy.
Trade policy includes trade agreements, but also the more
numerous U.S. trade laws, and then merges into economic policy.
We need to decide what our goal is for U.S. prosperity and then pursue
that goal, single-mindedly, in trade negotiations, trade law
amendments, and economic policy.
America has many assets. We have a smart, flexible workforce; a
solid legal infrastructure; highly productive agriculture; highly
efficent manufacturing; well-developed labor and environmental laws; a
system to protect consumers from unsafe food and shoddy goods. Of
course we can do better on thos fronts, but it is a pretty good package.
The "free trade" agreements do not serve our strengths. They cut tariffs. We have been cutting tariffs since the Bretton Woods conference
in 1945. Bretton Woods addressed the issues of the day. Our trade
agreements do not. Folks still talk about the Smoot-Hawley Act.
They're fighting the last war.
True free trade can only occur
with a multi-dimensionally level playing field. Comparative advantage
only works without labor mobility and with this multi-dimensionally
level playing field. Tariffs were a way to pursue national interests,
combat the protectionism of others, create a level playing field with
another country with a predatory trade policy, and yes... tariffs were
a way to protectionism. But like tax regimes, their can be good, bad
or mixed tariff regimes.
Our trade policy does not address the "tariffs" of today. The foreign country subsidies, the currency misalignment, the lack of environmental standards, the lack of labor standards, the Border Adjustable Taxes,
the shoddy quality issues. Indeed our trade policy actively
suppresses remedies for these problems. That is the problem.
It
is bad strategy to continue these trade agreements without retooling
our trade and economic policy to address the modern abuses, and focus
upon a truly level playing field. This is not old-style protectionism,
it is a necessary attempt to modernize trade policy which is "free" and
"fair".
Those pushing the South Korea, Panama and Colombia Free
Trade Agreements are still fighting the last war. The patchwork
approach of bilateral agreements without a national strategy not only
fails to make sense, it obstructs moving forward.
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