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Byrd droppings (Is George Allen anti free trade?)
Truth about Trade and Technology ^

Posted on 11/23/2005 10:35:06 AM PST by BransonRevival

Amid its disarray last week, the House of Representatives did do one good deed: It included the repeal of the anti-trade Byrd Amendment as part of its budget reconciliation. The White House is also pushing repeal, so opponents are now hoping Senators (including a Republican who wants to run for President) will keep this protectionism alive.

"Byrd" is named after West Virginia Senator Robert Byrd, who snuck it into a 2001 spending bill without debate. The amendment gives companies that sue for "anti-dumping" relief any duties that the government imposes on foreign competitors. U.S. companies that decline to join any dumping petition don't get to share in the Byrd droppings. In other words, sue for protection and get rewarded; keep your nose to the grindstone and get zilch. In political terms, it's a perpetual-motion protectionism machine.

It also violates global trade rules that the U.S. has agreed to observe. The World Trade Organization declared that Byrd was illegal in 2002, and it has authorized the European Union and seven other countries to impose retaliatory tariffs on American goods. This May, the EU did just that, slapping a 15% tariff on imports of 10 kinds of U.S. apparel. Canada, Mexico, and Japan have also retaliated.

According to a study by the Government Accountability Office, a mere five companies have collected half of the $1 billion in Byrd money that has been doled out since 2001. The biggest winner by far has been Ohio-based Timken Company, maker of ball bearings, which pulled down a staggering $52 million in 2004. Another Ohio company, candle-maker Lancaster Colony Corporation, got $26 million. This sure beats having to win market share.

The Commerce Department is holding almost $5 billion in Byrd money while the U.S. litigates multiple Nafta panel rulings that say U.S. anti-dumping duties against Canadian lumber violate that trade agreement. Fourteen Georgia companies got $321,000 in Byrd money in 2004, but 12 of those are lumber companies, awaiting the Canada decision.

Which brings us to the Senate, which didn't include Byrd repeal in its version of the reconciliation bill that now goes to conference. Nonetheless, 20 GOP Senators recently signed a letter to Majority Leader Bill Frist threatening to oppose final passage of reconciliation if it includes Byrd repeal once it returns from the House.

We're not surprised to see the signatures of Ohio Senators Mike DeWine and George Voinovich or Georgia's Saxby Chambliss on that letter. They're flacking for their home-state companies (see above) and no one will mistake them as Presidential timber. The really surprising name on the list, however, is George Allen, the Virginia Republican who has become the darling of some conservatives as they contemplate life after President Bush.

We wonder if Mr. Allen really knows what he's doing here. Byrd distributions in Virginia in 2004 totaled a mere $5.5 million. About $4.6 million went to Lafarge North America, and $924,000 to Titan America LLC -- both building material suppliers that stand to benefit from such protectionism as the 55% anti-dumping duty levied on Mexican cement.

In return for doing their bidding, Mr. Allen is cementing his own reputation as an opponent of free trade. No avowed protectionist has won the White House since Herbert Hoover in 1928 (and we know how that turned out), so backing Byrd doesn't look like a smart political strategy. Worse, it raises doubts about Mr. Allen's grasp of economic policy.

Modern Presidents of both parties have been ardent free-traders because they realize it is in the national interest. That's why Mr. Bush is now devoting a great deal of his time and diplomacy to advancing the Doha round of global trade talks. Byrd contradicts that policy, which is why a growing number of national business groups -- from home builders and construction companies to food processors and retailers -- are organizing to fight Byrd. They see both U.S. exports and consumers losing under Byrd to a handful of inefficient U.S. companies and their savvy Beltway lawyers. Which side are Mr. Allen and his GOP colleagues on?


TOPICS: Constitution/Conservatism; Extended News; US: Virginia
KEYWORDS: 109th; 2008; bluecollarvote; georgeallen; lumber; protectionism; robertbyrd
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To: Toddsterpatriot

Do you even know what "dumping" is?


21 posted on 11/23/2005 11:10:13 AM PST by Huck (Back from a brief timeout!)
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To: TXBSAFH

Free trade? LOL. China is a non-market economy. They have to play by certain rules, you know. Oh, nevermind.


22 posted on 11/23/2005 11:11:46 AM PST by Huck (Back from a brief timeout!)
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To: GOPGuide
Then its bad politics.

He may want a couple of things on his record to show he is not a knee jerk free trader, though his record is overwhelmingly pro-free trade.

23 posted on 11/23/2005 11:12:14 AM PST by Sonny M ("oderint dum metuant")
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To: TXBSAFH

"With the exception of this and a few other boards and a few talking heads on the TV, I have NEVER heard a single person defend free trade."

Same here. :)

Most of the people I know are white collar business people you would think would support Free Trade because it boosts their companies profits, but even with them they are mildly suspicous of Free Trade.

The only people I have ever seen that support Free Trade are hedge fund managers on CNBC and billionaire CEOs.


24 posted on 11/23/2005 11:14:39 AM PST by GOPGuide
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To: TXBSAFH
With the exception of this and a few other boards and a few talking heads on the TV, I have NEVER heard a single person defend free trade. I have heard a whole lot of vemon against it however.

See the 2004 senate elections.

Every single winning new freshman senator claimed to be free trade (John Thune who voted against CAFTA made it clear he was doing it out of protest over his airbase and was carefull to repeat that he was and still is pro free trade).

All the opposition mercantilists were defeated, several of them made it center in their platforms.

Long story short, free traders win elections, protectionists do not.

You might call it selfishness, but folks like lower prices and they vote for it when given the chance.

25 posted on 11/23/2005 11:16:40 AM PST by Sonny M ("oderint dum metuant")
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To: Sonny M

"Then its bad politics."

No I meant it won't help him in the SENATE Race.

In the Presidential race he could give the Democrats serious heart burn in Ohio, Michigan and Pennsylvania by trying to be somewhat more protectionist.


26 posted on 11/23/2005 11:16:45 AM PST by GOPGuide
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To: Huck
Do you even know what "dumping" is?

Maybe you could explain it to everyone?

27 posted on 11/23/2005 11:17:05 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: TXBSAFH
I have NEVER heard a single person defend free trade. I have heard a whole lot of vemon against it however.

The last protectionist to win the presidency was in 1928. When was the last time the U.S. rejected a free trade deal? Maybe you need to widen your circle of friends.

28 posted on 11/23/2005 11:18:55 AM PST by Mase
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To: GOPGuide
I don't think it will hurt him one bit in NH, or even New York or California.

One of the democrats in new yorks congressional delegation who voted for CAFTA was told clearly if he voted against it, he would face primary opposition and lose.

Nancy Pelosi gave him hell for it, but he knew the deal.

Folks may not talk pro-free trade, but they vote for it, when it means lower prices.

Its why running for senate as a protectionist loses elections, and free traders win (see 2004 senate elections).

29 posted on 11/23/2005 11:19:39 AM PST by Sonny M ("oderint dum metuant")
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To: GOPGuide
Most of the people I know are white collar business people you would think would support Free Trade because it boosts their companies profits, but even with them they are mildly suspicous of Free Trade.

Meet more people.

To many voters say one thing, but when they think that free trade means lower prices, they vote for lower prices.

Its why most protectionists can't call themselves protectionists (though it is more honest to call them mercantilists, protectionist is more of a slur).

Wal-mart raising prices ticks people off when its done by a politician, wal-mart slashing prices resulting in layoffs results in fist shaking and yelling....and votes for the guys who got those prices slashed through free trade deals.

30 posted on 11/23/2005 11:24:01 AM PST by Sonny M ("oderint dum metuant")
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To: TXBSAFH
Vote for me, I will help keep good jobs in Texas.

How do higher prices keep jobs and help people again?

31 posted on 11/23/2005 11:24:45 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: GOPGuide
In the Presidential race he could give the Democrats serious heart burn in Ohio, Michigan and Pennsylvania by trying to be somewhat more protectionist.

Michigan isn't going to GOP even if its Pat Buchanan, Ohio isn't going democrat even if the democratic nominee called for a Reagan Holiday, Pennslyvania is a big state, but its not going to swing.

Bush went protectionist, and it burned him more then being pro-free trade....besides, one mercantilist vote isn't going to change Allens record.

32 posted on 11/23/2005 11:26:56 AM PST by Sonny M ("oderint dum metuant")
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To: Toddsterpatriot

If the auto plant does not go to Mexico but stays here then the high paying jobs help Americans. Say prices do go up 5% but wages go up 10% you are ahead of the game.


33 posted on 11/23/2005 11:34:10 AM PST by TXBSAFH ("I would rather be a free man in my grave then living as a puppet or a slave." - Jimmy Cliff)
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To: TXBSAFH
Say prices do go up 5% but wages go up 10% you are ahead of the game.

If you have 3000 employees and build 6000 cars then I'll agree. If you plan to build more than 6000 cars then it sounds like your plan is a loser for the American people.

34 posted on 11/23/2005 11:43:03 AM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
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To: GOPGuide
The only people I have ever seen that support Free Trade are hedge fund managers on CNBC and billionaire CEOs.

Ever heard of Milton Friedman? He's influenced more than just billionaires, CEO's and hedge fund managers. He said:

Hard to argue with. Maybe you can tell us the last time the U.S. rejected a free trade agreement. Who was the last protectionist to run for president and how much of the popular vote did he receive? This will tell you all you need to know.

35 posted on 11/23/2005 11:43:23 AM PST by Mase
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To: BransonRevival

The Byrd Amendment allows U.S. companies to keep the profits from tariffs imposed by the U.S. government, instead of the money going to the U.S. Treasury. What that means is that the U.S. companies that successfully bring an anti-dumping action at your expense force you to pay higher prices for their products, while also keeping the revenue generated by the tariffs. In other words, from your standpoint, it's a lose-lose-lose.


36 posted on 11/23/2005 11:44:23 AM PST by 1rudeboy
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To: TXBSAFH
If you put it on the 2006 ballot for Michigan to be the next "Right to work state", it would pass.

People are losing their jobs to the southern states, and regardless of what you think, they would rather have "A job", than to make a statement about union BS and protectionism.
37 posted on 11/23/2005 11:45:59 AM PST by Beagle8U (An "Earth First" kinda guy ( when we finish logging here, we'll start on the other planets.)
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To: Sonny M

"You might call it selfishness, but folks like lower prices and they vote for it when given the chance."

You could call capitalism "selfishness". On the other hand, you could say that Communism is the purest example of "selflessness". In this particular case, the phrase "The Road to Hell is paved with good intentions" is definitive.

People who support free trade understand where prosperity comes from, just like people who support capitalism. To be sure, a minority always benefits from protectionism. When a majority supports protectionism, it is because they have been fooled.

Having said that, educating the public on this issue can be quite difficult.


38 posted on 11/23/2005 11:46:07 AM PST by strategofr (The secret of happiness is freedom. And the secret of freedom is courage.---Thucydities)
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To: Toddsterpatriot

Heard of the trickle down therory of economics. There is a also a trickle up therory. If wages go up in say auto making it will drive wags up for others to compete for the best workers. A rising tide lifts all boats.


39 posted on 11/23/2005 11:46:13 AM PST by TXBSAFH ("I would rather be a free man in my grave then living as a puppet or a slave." - Jimmy Cliff)
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To: BransonRevival

Not really. Maybe if I read it a few more times, do a few weeks of research and get educated …


40 posted on 11/23/2005 11:47:03 AM PST by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink.)
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