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BERGSTEN / SUBRAMANIAN: 'New mercantilism'
Washington Times ^ | June 9, 2009

Posted on 07/01/2009 10:04:22 AM PDT by Lorianne

The global economic crisis appears to be stabilizing, with recovery clearly under way in China and likely to commence in the U.S. over the next few months. The G-20 Summit in London in early April accomplished a good deal, especially in expanding the ability of the International Monetary Fund to counter the turndown in poorer countries and recommitting the major economic powers to refrain from protectionism.

But this is no time for complacency on the international front. There remains a persistent threat of pressure in major countries to adopt new trade barriers and other mercantilist measures that could strangle the trading system and stifle renewed growth. The Obama administration has declared its intention to thwart these dangers. But its goals must now be converted into day-to-day vigilance and action, including a willingness to "name and shame" violators of trade and currency norms both at home and abroad.

The "new mercantilism" takes many forms. Despite their pledge at the first G-20 summit last fall, most of its members have erected new distortions to international trade. A number of major emerging-market economies (including Brazil, India and Russia) have raised tariffs. Argentina and Indonesia have imposed new licensing requirements on imports. The European Union and China have reintroduced export subsidies. The U.S. is restricting government procurement of foreign products under the new fiscal stimulus program and has imposed restrictions on Mexican trucks that have provoked retaliation on American exports to Mexico.

Most countries taking these steps, including the U.S., defend them as consistent with the rules of the World Trade Organization and other international trade agreements. But such increases in "legal protectionism" have the same negative impact on the prospects for global recovery as any other interference with international trade.

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; Editorial; Government
KEYWORDS:

1 posted on 07/01/2009 10:04:22 AM PDT by Lorianne
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To: Lorianne

new mercantilism”= Goodwill stores, yard sales, bartering, fixing up used cars, etc., what else?


2 posted on 07/01/2009 10:07:34 AM PDT by norraad ("What light!">Blues Brothers)
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To: Lorianne

I expect to see, coming out of Washington, the demand that we not buy American made goods. We need to support American manufacturers and put “our” people back to work. At the same time, demand quality products from our manufacturers and our labor force. Our people can do this....we’ve done it in the past.


3 posted on 07/01/2009 10:08:26 AM PDT by RC2
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To: Lorianne
The global economic crisis appears to be stabilizing, with recovery clearly under way in China and likely to commence in the U.S.

No, that's just our stimulus package, trickling offshore to Chinese factories via the Trade Deficit.
Since we didn't invest it in anything productive, it'll probably dissipate pretty quickly.

4 posted on 07/01/2009 10:12:52 AM PDT by Willie Green (Go Pat Go!!!!)
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To: norraad

Yep. The Great American Yardsale is about to commence.


5 posted on 07/01/2009 10:13:22 AM PDT by Lorianne
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To: Lorianne

Another “Free Trade with Communist China is good” slant piece.

Free Trade doesn’t work....it redistributes wealth from the US to many of our enemies....a threat to our economic well-being as well as our national security.

Even worse...all that wealth redistributed to Communist China ends up in the hands of Kim Jong Il and the like

It looks stupid to continue to Free Trade when no other nation wants to. Try selling US made products to Communist China.

I guess the Free Trade “comrades” just cant let go.....


6 posted on 07/01/2009 10:14:24 AM PDT by UCFRoadWarrior (The Biggest Threat To American Soverignty Is Rampant Economic Anti-Americanism)
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To: Lorianne
I've had nothing but good results socially and ecomonically doing same.

It's a whole new world, jump in the waters fine!

7 posted on 07/01/2009 10:16:40 AM PDT by norraad ("What light!">Blues Brothers)
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To: RC2

Your approach is so logical...and would create jobs in America.

Unfortunately too many Globalists, Liberals, and faux Conservatives think you create jobs by shipping them out of America....when actually you create higher unemployment, higher taxes on those still with jobs, and higher crime.


8 posted on 07/01/2009 10:16:55 AM PDT by UCFRoadWarrior (The Biggest Threat To American Soverignty Is Rampant Economic Anti-Americanism)
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To: Lorianne

“The global economic crisis appears to be stabilizing, with recovery clearly under way in China and likely to commence in the U.S. over the next few months.”

Chortle


9 posted on 07/01/2009 10:37:56 AM PDT by headstamp 2 (Spay or Neuter your liberal today!)
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