Trade war averted.

[Jon_in_london]

Sounds like the looming trade war between the US and the EU has been averted. Bush's spokesman just announced the end of the steel tariffs.

Joly good.

[arcticpenguin]

http://www.cnn.com/2003/ALLPOLITICS/12/04/elec04.prez.bush.steel/index.html


"These safeguard measures have now achieved their purpose," said White House spokesman Scott McClellan, reading a statement from Bush.
So it's not a reversal, it's just that the job is done. Whatever that was.
:rr:

[WildCat]

The steel tarrifs were a terrible idea from day one. The effort to save the jobs of 20,000 workers in old-time inefficient steel producing companies cost the jobs of 200,000 workers in steel-using industries.

It also undermined US efforts to get other countries to open up their markets to US goods.

Protectionists should study this one real good. Even Clinton understood the importance of open markets. If only the 9 Dems running for president (and tripping over themselves trying to get the union votes) understood as well.

[Chupacabras]

Seems like open trade is a politically-risky venture. Cemex, one of the biggest cement companies in the world (mexican), also filed a complaint at the WTO becasue the USA is blocking their products on an alleged (but never supported/cared to be proven) accusation of dumping. I don't know when this issue will come to an end, but it will surely mean something big for those involved.

Then, there's the mutual finger pointing between Mexico and the USA for failing to comply with the NAFTA. It happens everytime a deadline is coming (cargo trucks, automobiles, agricultural products...) and/or during election years.

[The Don]

Of course the U.S. couldn't bee seen to back down, run their course my @r5e. Never mind, ot would seem that just for a moment, the international rule of law has been re-instated.

Trade protection is one of those irregular verbs:

- I am protecting my consumers against illegal dumping of sub-statndard products
- You are putting a constraint on the flow of goods and money
- They are illegally barring entry to their market, the b@5t@rd5

[Jon_in_london]

Not nearly enough comments on this fair thread. Maybe I should have been more inflammatory.........

[Tesserat]

We have the perpetual softwood lumber battle in BC. It keeps being taken to NAFTA, NAFTA agrees with the canadians, the americans ignore it.

Construction companies in the states side with the Canadians, and the American lumber companies have a bigger lobby. Go Politics!

[Garrette]

Jon_in_London

Not nearly enough comments on this fair thread. Maybe I should have been more inflammatory.........

This is because, at least for my part, the right course is embarrassingly obvious and embarrassingly avoided because we Americans are so embarrassingly ignorant of our embarrassing past.

I'm not a Clinton fan, but NAFTA is one thing he did right, even if we don't fully abide by it now.

Heard on BBC this morning comments from the Steel Union leadership and it was very wrong-headed but tailored to sell well. This particular individual promised to work hard to ensure GWB is not re-elected because of this. He talked about how Europeans shouldn't be allowed to dictate what the US does inside its borders. Never mind that it was strictly a quid pro quo.


Smoot Hawley Smoot Hawley Smoot Hawley Smoot Hawley

[Drooper]

This is good news.

Now, what's next.

Stupid EU Agricultural trade restrictions/tariffs/dumping?

Stupid Japanese rice import restrictions?

Dopey Australian car tariffs?

I also believe in the tooth fairy.

[pupdog]

You've got to admit, the Bush Administration has a great sense of humor. I just heard the spokesman (George must have been too busy with important stuff to announce it himself) say that not only did the tariffs achieve their purpose, but there was no retaliation.

:p

[Jon_in_london]

Originally posted by pupdog
You've got to admit, the Bush Administration has a great sense of humor. I just heard the spokesman (George must have been too busy with important stuff to announce it himself) say that not only did the tariffs achieve their purpose, but there was no retaliation.
:p

Well, I seriously doubt that its 'achieved its purpose' but I have no info that it has or hasnt done that.

Also, while he is strictly correct that there wasnt any retaliation, he forgot to mention that there was massive retaliation just over the horizon.

Somewhat disturbing is the fact that he never once mentioned the WTO rulings as a reason for this retraction. And this is from a man who is supposed to a major proponent (especially in places like Iraq) of free trade, democracy and the rule of law.

Perhaps most disturbing of all is the apparent recklesness of Bush's handling of the economy. This kind of thing needs sober heads not the random acts of an apprently paranoid leader concerned principally with the short-time gain of votes rather than the overall health of the {US and therefore world} economy.

[Shane Costello]

Originally posted by Jon_in_london:
Perhaps most disturbing of all is the apparent recklesness of Bush's handling of the economy. This kind of thing needs sober heads not the random acts of an apprently paranoid leader concerned principally with the short-time gain of votes rather than the overall health of the {US and therefore world} economy.

Lest we forget reckless political actions in the economy for short term electoral gains are a problem in every country, not just the US. Tony Blair's love affair with the Euro and the Franco-German sweetheart deal on the CAP spring to mind.

[WildCat]

Originally posted by Jon_in_london
Somewhat disturbing is the fact that he never once mentioned the WTO rulings as a reason for this retraction. And this is from a man who is supposed to a major proponent (especially in places like Iraq) of free trade, democracy and the rule of law.

Perhaps most disturbing of all is the apparent recklesness of Bush's handling of the economy. This kind of thing needs sober heads not the random acts of an apprently paranoid leader concerned principally with the short-time gain of votes rather than the overall health of the {US and therefore world} economy.
If you think Bush is protectionist, have a look at Howard Deans' policy: (http://www.deanforamerica.com/site/PageServer?pagename=policy_statement_labor)
Creating and keeping good jobs for Americans also requires the rigorous enforcement of fair trade policies. I would not negotiate trade agreements that do not include meaningful labor, environmental, and human rights protections. I would not pursue trade policies that undermine important U.S. laws and regulations, especially those that protect American workers. I will vigorously enforce anti-dumping laws.
This man has no idea how a modern economy works.