Posted on 08/12/2007 7:31:38 AM PDT by 1rudeboy
The last time the top U.S. trade representative visited Seattle, in 1999, the city was erupting with anti-globalization protests in the streets.
This time, U.S. Trade Representative Susan Schwab found a calm Seattle, but across the country attitudes toward free trade are even more pessimistic than before.
"Trade is becoming a hard sell in the other Washington," Schwab said Friday, addressing the Washington Council on International Trade.
With four free-trade agreements signed by the president and awaiting passage by Congress, Schwab's challenge is to persuade legislators and the U.S. public that the agreements are in their best interest. The bilateral agreements are with Peru, Colombia, Panama and Korea.
Passing the agreements with the three Latin American countries will allow U.S. companies to sell their products to about 75 million consumers duty-free.
Washington agricultural products that could benefit from the deals include fruits, beef, wheat, dairy products and potatoes.
The U.S. trade agreement with Korea could offer similar benefits. It makes two-thirds of U.S. food products duty-free for the Korean market, which imports almost 70 percent of its food. Korea will eliminate its 24 percent tariff on sweet cherries immediately, under terms of the deal, and it will also lift its 29.5 percent tariff on roasted coffee.
The agreement levels the playing field for U.S. technology, which could be important for Seattle companies since Korea is a growing market for software and services, she said.
The trade agreements also give the U.S. strategic advantages in Asia and Latin America.
Signing a major trade deal with Korea gives the U.S. "a major permanent toehold in Asia" at a time when competition with China is growing and Asian regional agreements are being negotiated that could exclude U.S. interests, she said.
(Excerpt) Read more at seattletimes.nwsource.com ...
Free trade should have been tried incrementally, first with common democracies and then within our hemisphere.
Like most anything it tires the Federal government has proven itself to be inept at protecting US interests. We are stuck with a system of trading with Communist slave states and we can't expand trade with our neighbors.
If someone wishes to oppose the free trade agreement with South Korea on the basis of China's transgressions, then it probably squarely falls within the comment in #1.
Most favoured nation (MFN), also called normal trade relations in the United States, is a status accorded by one nation to another in international trade. Somewhat counterintuitively, it does not confer particular advantages on the receiving nation, but means that the receiving nation will be granted all trade advantages, such as low tariffs that any third nation also receives.
Free trade agreement (FTA), is an agreement between a nation or group of nations that lowers tariffs past the point allowed by most favored nation status (MFN).
You know, it would probably be more productive to advocate a set of higher tariffs on China in some other fashion than opposing a FTA with Panama.
Right now most anything that lowers Korea tariffs is probably a good thing. Korean trade was built on the successful Japanese merchantilist model. While they were building up their domestic auto industry they had something like a 300% duty on imported US cars.
I believe S. Korea runs a fairly large trade surplus with the US. I'd rather see my country in a position to say if you want to continue to have access to these markets the tariffs mentioned have to be dropped immediately.
Good point - just advocate dropping MFN.
I wouldn’t have a problem with that . . . some of our exporters would take a hit, but as is pointed out the trade deficit is substantial.
You didn't. I was unclear.
China is a WTO member. Such a policy would violate the WTO and expose the United States to sanctions.
Whoops . . . forget about that. We need to get started on those safety inspections, then.
As I said stuck.
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