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When Cheap Products Kill: Emerging Global Trade Regulations
Townhall.com ^ | July 11, 2007

Posted on 07/11/2007 3:50:29 AM PDT by Kaslin

China's global customers are learning cheap products can be quite expensive --and deadly.

Shoddy workmanship may be a judgment call, but lethality is not. In Panama, cheap exacted the highest price: Over 100 Panamanians died after swallowing a Chinese-made cough syrup.

The list goes on. In March, pet food made with Chinese-manufactured ingredients killed or sickened several thousand American pets when a Chinese exporter "bulked" food ingredient shipments by adding melamine, a byproduct of plastic. Tainted Chinese-made toothpaste turned up in Central America, the United States and Canada. Canadian authorities later identified 24 different toothpastes (all from China) containing hazardous material. The U.S. Food and Drug Administration recently restricted the sale of Chinese seafood products after discovering high levels of carcinogens and antibiotic drugs in recent shipments. A recall of Chinese-made tires is also underway.

Belatedly, U.S. regulators have begun removing other Chinese-made processed foods, manufactured goods and personal products for American shelves.

We'll return to exports in a moment -- but China's risky products also plague its own domestic market. China's nascent regulatory agency, the General Administration of Quality Supervision, Inspection and Quarantine, examined domestically sold Chinese agricultural products and manufactured goods and estimated almost 20 percent of the products and food sold to its own citizens were "substandard or tainted."

China depends on exports, and the United States is China's chief export customer. Exports are key to China's entire modernization strategy. Its lethal products are killing its customers and, in doing so, seriously damaging its own economic engine.

Which is why China will eventually adopt U.S. and European Union regulatory standards, to everyone's benefit.

At least, that's the argument made in a fascinating new book, "All Politics Is Global," by Daniel Drezner and published by Princeton University Press. Drezner teaches international politics at Tufts University's Fletcher School of Law and Diplomacy.

This is a detailed, scholarly book that explicates the arcane aspects of regulatory law and regulatory agreements. It won't crack the popular market. However, it will percolate and influence because it also explains quite well the "big picture" elements of global trade and global regulation.

The book was published earlier this year, before China's tsunami of tainted exports, but it accurately anticipates just this kind of a global trade regulatory conflict -- or conflict based on a lack of agreed-upon and enforced product and liability regulations.

Drezner slams globalization popularizers like Thomas Friedman and his "The World Is Flat." That includes the crowd that has written off the nation-state as dying or already dead.

Drezner says bluntly that, on this planet, "states make the rules," and rules matter a great deal. He provides case study after case study of agreements ranging from Internet protocols to money laundering to prescription drug safety. He scotches claims of a borderless globe where standards are "a race to the bottom." The "pop globalization" description Drezner concludes is "simple, pithy and wrong."

Drezner examines the case of exporters abandoning markets, perhaps based on regulatory issues, but a competitor fills the niche. No, all regulations don't necessarily "converge" to a single standard, but globalization does increase the "rewards for policy coordination."

And who enforces the rules in a global political economy? The nation-states.

The size of a nation's market ("aggregate demand") is a very powerful force, and the United States is the superpower of markets. "Global exporters who kill American pets and sicken American seafood lovers will be shut out of the market. When shut out, they impoverish themselves."


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events
KEYWORDS: consumersafety; foodsafety; globalism; toxicchina
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1 posted on 07/11/2007 3:50:32 AM PDT by Kaslin
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To: Kaslin

IOW you don’t prosper by killing your customers.


2 posted on 07/11/2007 3:55:10 AM PDT by cinives (On some planets what I do is considered normal.)
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To: Kaslin
Which is why China will eventually adopt U.S. and European Union regulatory standards, to everyone's benefit.

The only way to make that happen is to slap restrictions on Chinese imports. Hitting them where it hurts, in the wallet, will be the only incentive the Chinese have to change things.

On a related note, don't people normally start revolutions over this sort of thing?

3 posted on 07/11/2007 3:57:27 AM PDT by pnh102
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To: cinives

Time to take China of the most favorite nation list


4 posted on 07/11/2007 3:59:11 AM PDT by Kaslin (Fred Thompson for President 2008)
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To: Kaslin
Image hosted by Photobucket.com China Industries International

their new corporate logo...

5 posted on 07/11/2007 4:02:48 AM PDT by Chode (American Hedonist)
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To: Kaslin

And long past time for people to demand truth in advertising.

I want to know where my food and medicine is made, including the ingredients.


6 posted on 07/11/2007 4:02:59 AM PDT by cinives (On some planets what I do is considered normal.)
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To: Kaslin

Communists are really good liars they’ll never change. They’ll clean up their act for a while but it won’t last.


7 posted on 07/11/2007 4:08:33 AM PDT by Dustbunny (The BIBLE - Basic Instructions Before Leaving Earth)
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To: Kaslin

China really doesn’t care much about the lives of its own people and could care less about ours.


8 posted on 07/11/2007 4:19:20 AM PDT by NaughtiusMaximus ("Eat yer groatcakes, Porgy!" "Heavy on the thirty weight, Mom!")
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To: Chode

“globalization is good”

“globalization is good”

“globalization is good”

“globalization is good”

“globalization is good”

“globalization is good”

Where are these freepers?


9 posted on 07/11/2007 5:05:07 AM PDT by Red in Blue PA (Truth : Liberals :: Kryptonite : Superman)
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To: Kaslin; All
What we all have been reading about, or at worst, experiencing first-hand.....is only the tip of the iceberg with respect to cheap tainted and poisonous imported food products.

Heck, the FDA cannot even control the BS greed or oversight mistakes in our own country with respect to 'bad' food.....now just how are we gonna be protected? Heck, the feds cannot even control 2000 miles of border or get 750 miles of wall / fence built in 2 years.

10 posted on 07/11/2007 5:29:21 AM PDT by RSmithOpt (Liberalism: Highway to Hell)
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To: Dustbunny
Communists are masters at 'the smoke-n-mirrors game', not to mention rampant corruption.

I never buy anything from China anymore, or Asia with regards to food and I won't the remainder of my days left on this earth... I'll grow my own or shop at the farmers market.

11 posted on 07/11/2007 5:32:11 AM PDT by RSmithOpt (Liberalism: Highway to Hell)
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To: Red in Blue PA

EXACTLY!


12 posted on 07/11/2007 5:32:37 AM PDT by RSmithOpt (Liberalism: Highway to Hell)
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To: Arizona Carolyn; mom4kittys; blam; Salamander; Red Badger; WakeUpAndVote; dirtboy; Overtaxed; ...

13 posted on 07/11/2007 5:43:51 AM PDT by mom4kittys (If velvet could sing, it would sound like Josh Groban)
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To: Red in Blue PA

LOL.....EXACTLY!

There is a candidate running for President who happens to be adored and idolized that is a GLOBALIST.......{{shudder}}


14 posted on 07/11/2007 5:47:49 AM PDT by stopem (God Bless the U.S.A AND the Troops who protect her, and their Commander In Chief.)
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To: pnh102
Hitting them where it hurts, in the wallet, will be the only incentive

Too many in Congress (and the White House) have financial interests in China. They would rather see Americans die and America destroyed rather than lose a penny of it.
15 posted on 07/11/2007 6:28:48 AM PDT by hedgetrimmer (I'm a billionaire! Thanks WTO and the "free trade" system!--Hu Jintao top 10 worst dictators)
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To: KylaStarr; Cindy; StillProud2BeFree; nw_arizona_granny; Velveeta; Dolphy; appalachian_dweller; ...

ping


16 posted on 07/11/2007 8:46:03 AM PDT by Calpernia (Breederville.com)
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To: cinives

Push for the COOL law. Not much buzz on talk radio or other conservative sites about it. It’s a shame because it would aid free market rather than inhibit. All about choices for consumers.


17 posted on 07/11/2007 8:52:13 AM PDT by JLLH
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To: Calpernia

Bump.


18 posted on 07/11/2007 12:39:28 PM PDT by nw_arizona_granny ( Today is a good day for working on some heavy praying. The world needs God to hear them.)
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To: Kaslin

Simple answer: Don’t buy Chinese goods. It will be tough for a bit, but manufacturers will get the message.


19 posted on 07/11/2007 12:45:04 PM PDT by bk1000 (A clear conscience is a sure sign of a poor memory)
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To: bk1000

That’s what I’m trying to do, but it’s hard when the distributor is all that’s mentioned and you just don’t know.


20 posted on 07/11/2007 5:46:57 PM PDT by JLLH
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