December 6, 2003
WHO'S SOVEREIGN?:
Europeans Plan to Press for Tariffs Against U.S. (ALAN COWELL, 12/06/03, NY Times)
One day after President Bush abandoned American protective tariffs on imported steel to avert a trade war with Europe, Pascal Lamy, the European trade commissioner, said he would use the same tactics again in another long-running trade dispute with the United States.Mr. Lamy said the European Union would press ahead with punitive tariffs on some $4 billion worth of goods from politically pivotal regions of the United States if Washington did not end tax breaks for American corporations' offshore operations. The tax breaks have already been found by the World Trade Organization to be an illegal export subsidy.
Mr. Lamy's remarks reflected assessments by some European trade experts that after the American retreat on steel, the power balance of global trade had shifted in Europe's favor.
Time for the U.S. to get out of the WTO and really on unilateral removal of our own tariffs and bilateral agreements. Trade is not more important than self-government. Posted by Orrin Judd at December 6, 2003 10:34 AM
Gawd-Almighty! i cannot imagine a more horrific thing for Europe to do than persue this.
Let's see, Bush gets accused of evil unilateralism, attacked (rightly) for the steel tarriffs, so he RELENTS, and kills them.
Then Europe acts exactly like Hamas would (Hey, they gave in a bit, time to pile on!!). Americans to the last citizen see Mr. Bush compromising, and his sanctimonious overseas adversaries reacting by turning up the heat.
Then, Americans note that said adversaries are choosing states to hurt, i.e., blatantly interfering in the US political process. Virutally every US nightmare button about international organizations vs US sovreignty gets pushed. One might casually mention the riduculous agricultural subsidies in the EU at the same time.
Finally, the old saw about, if you shoot at the King, you'd damn sure better kill him. Not only will this likely backfire on the Euro's big time, just what do you think Mr. Bush's (and his 55 million voters) opinion of them, the WTO, and other "multi-lateral" organizations will be in the aftermath?
Jeebus! Can they really be that self-destructive?
I have to believe this won't really happen. Surely they can't be that stupid.
Andrew;
One need only look at the state of the continent to answer your question.
It seems to me that the appropriate response would be a counter offensive on agricultural subsidies.
Posted by: Annoying Old Guy at December 6, 2003 2:32 PMAndrew X,
Hit it right smack on the head! The way this issue has been covered is an outrage. From the NYT -- to be expected. But look at this week's more sensible and honest advocate of free trade -- the Economist -- and (a) the White House surrenders and (b) rescinding temporary tariffs is portarayed as a bizarre combo of lack of guts and political expediency.
None of this is about free trade, it is about sophisticates at every level to find a way to criticize.
Posted by: MG at December 6, 2003 2:55 PMHard to find an issue on which the right (represented by Orrin) and the left (NYT and NPR, among others) see the world so differently.
A week or so ago, Orrin declared the on and off steel tariffs a brilliantly successful political strategy. NPR (not a place I'd look for profound thought about economics) declares it "lose-lose."
I'm all for self-government, which is why I opposed free trade in steel -- it gives the play to other countries.
The NYT, also not a place I'd look for economic sense, came out against sugar price supports on the grounds that sugar workers in Florida are not paid much. But sugar workers in Hawaii are the highest-paid agricultural workers in the world and have been for more than 50 years. So then what?
Free trade is like a seesaw. On one end is Twiggy, on the other John Goodman. That's equal, right?
Posted by: Harry Eagar at December 6, 2003 3:33 PMFree trade is good because it's good for us as consumers. It will become bad if other nations and institutions can exploit it to change the way we are governed. Drop the tariffs unillaterally and leave the WTO.
Posted by: oj at December 6, 2003 4:08 PMAnd bad for us as producers.
Only the unproductive benefit wholly from free trade. I see no reason to coddle them.
Posted by: Harry Eagar at December 7, 2003 8:48 PM