Tide Turning on Globalization?

July 30, 2008

http://www.usatoday.com/money/world/2008-07-29-trade-tallks-collapse_N.htm

First of all, in an article I posted yesterday, I predicted that the U.S. would cave in to the demands of China and India in the “Doha round” of trade negotiations at the WTO (World Trade Organization).  I’ll be the first to happily admit that I was wrong!  As reported in the above article, the talks completely collapsed yesterday, and some say they may not be revived for years, if ever.  Is it possible that the tide is turning on globalization?  Could it possibly be that U.S. leaders are beginning to recognize the incredible damage that’s been done to our economy by parasitic, overpopulated nations? 

We can only hope.  There’s one particularly revealing paragraph in this article that deserves comment:

The talks’ failure may mark a watershed after two decades of increasing globalization. The collapse comes against the backdrop of a weakening global economy and growing opposition to foreign trade and the associated high-profile job losses in the U.S. The Doha Round, named for the Qatari capital where the talks began in November 2001, was designed to benefit poorer nations by reducing trade-distorting farm subsidies. The U.S. and Europe would reduce their generous payments to farmers, it was hoped, in return for broader access to developing countries’ markets for industrial goods.

This is an unusually frank admission that free trade has been harmful to the U.S. economy and that the real agenda of these talks was not to advance the concept of free trade but to benefit poorer nations.  I’ve said over and over again that this is the real agenda of the WTO, to transfer America’s wealth around the world and that it does this by actually enforcing protectionism for two thirds of its member states. 

The following paragraph merits comment as well:

… The issue that scuttled the talks involved a demand by India and China for the right to increase tariffs if food imports surged. Both countries have several hundred million small-scale farmers whose livelihoods would be threatened by larger, more efficient U.S. and European producers.

Oh, I see, it’s OK for China and India to protect domestic production.  They demand the right to raise tariffs if imports surge.  What about the $250 billion of imports (from China alone, in excess of exports) that have wiped out millions of high-paying manufacturing jobs in America?  If America so much as utters a peep of complaint, we’re mocked as “protectionists!” 

It’s time to fight fire with fire and bring back the tariff policies that the U.S. relied upon for the first 171 years of its history to protect domestic industry from such predatory practices.  It’s time to eliminate the trade deficit.  The “developing world” (especially China) likes to brag that it has “decoupled” from the U.S. economy.  It’s time for them to prove it.  Let’s wean them from America’s free trade breast. 


European Trade Negotiators Back Away from WTO

May 25, 2008

Here’s a news report that indicates the “Doha round” of WTO (World Trade Organization) negotiations may be breaking down, making it unlikely that a deal will be reached before Bush leaves office – a good thing, since Bush has signaled that he’s willing to sign any deal reached.  As it turns out, European negotiators may be the only friends that American workers have in those trade negotiations. 

http://africa.reuters.com/business/news/usnBAN431071.html

Europe’s trade chief Peter Mandelson, facing growing protests from EU business over global trade negotiations, thinks a lot more work needs to be done before he can agree to any deal, his spokesman said on Friday.

… Manufacturers of cars, textiles, chemicals and other industrial goods in the European Union, once seen as the bloc’s likely winners in the round, now worry that they will lose out.

Europe’s biggest employers lobby BusinessEurope criticised the revised WTO proposals on industrial goods on Friday as a “step backwards” offering big developing nations like China, Brazil and India “a free ride” on the back of European industry.

If it’s a “free ride on the back of European industry,” you can be sure that it would ride the backs of American workers even harder. 

The EU’s trade commissioner actually listens to the concerns of EU businesses.  Imagine that!  Perhaps the U.S. negotiator should be introduced to this novel concept.  Instead he’s 100% focused on scoring any kind of trade deal he can come up with that could be hyped as some sort of feather in the cap of Bush’s legacy.

I’ll keep you posted regarding any “Doha round” developments as they arise.