By Daniel Ikenson
Later today the U.S. Department of Commerce is expected to announce preliminary antidumping duties on solar panels from China. This case might normally be met with an exasperated sigh and chalked up as just another example of myopic, self-flagellating, capricious U.S. antidumping policy toward China. But in this instance the absurdity is magnified by the [...]
Solar Panels Trade Case Mocks Washington’s Ways is a post from Cato @ Liberty – Cato Institute Blog
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Popular opinion demonizes the U.S. for importing more goods than it exports, or running a “trade deficit.” This view maintains that the trade deficit is costing jobs and slowing economic growth. “The $600 billion annual deficit is the most significant barrier to achieving a robust economic recovery and creating jobs,” charges a recent column. Yet this popular understanding, which is based on an incomplete assessment of the trade equation, is wrong. The prevailing view assumes that exchangingU.S.currency for foreign goods leaks money out of circulation. The reason for this confusion … More
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By Daniel Ikenson
If you harbor any doubts that the parameters of U.S. trade policy are defined by a few politically-important domestic industries, take a look at the debate over whether Japan should be allowed to join the Trans-Pacific Partnership trade negotiations. Did you miss it? That’s because there really hasn’t been much debate; there has been near-unanimous [...]
The TPP Trade Negotiations Need More Japan and Less Detroit is a post from Cato @ Liberty – Cato Institute Blog
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North Carolinians, like many Americans, are concerned that opening the door to foreign companies will result in the loss of jobs, hurting the economic livelihood of the state and its residents. North Carolina’s elected officials have reflected their concerns on free trade through their voting patterns. Both the voters and their representatives should rethink their position on free trade. While expanding on trade relations with other countries may, in some circumstances, lead to a decrease in employment for certain sectors, the overall benefits far outweigh the costs. North Carolina continues … More
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China has the world’s second-largest GDP, the world’s largest monetary base, and the world’s largest foreign exchange reserves. Its large internal and external economic imbalances can matter a great deal to the global economy. There are claims China is now rebalancing. It isn’t. Claims of rebalancing are based on the current account surplus, a broad measure of trade and other international activities that are concluded over a short period. China’s current account surplus with the world has fallen sharply as a percentage of GDP. However, the current account surplus tells … More
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Sugar producers contribute only a small percentage of value to overall U.S. crop production, yet the industry continues to reap the rewards from government thanks to a significant lobbying presence and sizable campaign donations. The result is government interference in the sugar market, which dates to the 1930s Depression. American consumers pay the price in the form of higher prices. This week’s chart depicts sugar’s sweet deal. When the federal government hands out favors to sugar producers, they turn around and fund lobbyists and political action committees, leading to yet … More
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The U.S. Bureau of Economic Analysis (BEA) just announced that the country’s current account deficit for 2011 was $473.4 billion. This number includes transactions like exports and imports. Cue the “sky is falling” headlines. However, the BEA did not point out that the overall U.S. international transactions deficit was $0. That means the number of dollars leaving the country and the number of dollars entering the country in 2011 balance out. Clearly explaining this information might reduce the number of inaccurate reports on the trade deficit’s impact, such the Associated … More
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March 15 marked the official start of the landmark Korea–U.S. Free Trade Agreement (KORUS FTA). Yes, it’s been a long journey. Almost six years ago, Washington and Seoul announced their intention to negotiate a free-trade pact. Critics were skeptical, yet the announcement was greeted as a welcome surprise. Despite their differences, the two allies had shown that they were determined to expand their economic partnership for the future. No matter how bumpy and dramatic the process, one thing has been clear from the outset: The whole process of negotiating, signing, … More
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By Daniel Ikenson
This morning the Obama administration lodged an official complaint with the World Trade Organization’s (WTO) Dispute Settlement Body over China’s ongoing restrictions of exports of “Rare Earth” minerals. Rare Earths are crucial ingredients used in the production of flat-screen televisions, smart phones, hybrid automobile batteries, and other high technology products. The formal complaint was not [...]
Trade Policy Lessons in WTO Challenge of China’s Rare Earth Restrictions is a post from Cato @ Liberty – Cato Institute Blog
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President Obama just announced plans to borrow millions of dollars from countries likeChinato create a new federal bureaucracy tasked with policing the trade practices of countries likeChina. The new bureaucracy is more about politics than trade. The International Trade Enforcement Center (ITEC) will have as many as 60 employees. With a budget of $26 million—about $433,000 per employee—it appears the agency may be bloated even by government standards. For example, the U.S. Trade Representative’s Office (USTR) currently spends about $207,000 per employee. The U.S.government already has several agencies dedicated to … More
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