Protectionism Problems Persist
June 22, 2009 9:04 pm
You would think that the world would have learned, but it is very apparent that it has not. Leaders are obviously trying their best to revive and protect their economies even thought the perils of the 1930’s has shown that that leads economies into greater difficulties.
Now, the U.S. and UE are going after China’s export policies. That is a slippery slope that will surely be intercepted by threats by China regarding U.S. treasury bonds and counterclaims tht we have aided the U.S. auto industry to the detriment global industry. Also, it will be fun to watch the WTO squirm as they are reminded about the “BUY AMERICAN” edict that has been added to the recent U.S. stimulus package.
Are they simply posturing? What is the point anyway…?
ISCO (MarketWatch) — The U.S. and the European Union are expected to announce a World Trade Organization case against China over its export restrictions on raw materials, according to a report Monday.
Reuters reported that U.S. Trade Representative Ron Kirk’s office has scheduled a news conference at 9:15 am Eastern time regarding U.S.-China trade, at which industry sources expect the WTO case will be announced.
The action would follow the failure of the U.S. and EU to persuade China to reduce its export tariffs and raise quotas on materials including zinc, tin, tungsten and yellow phosphorous, Reuters reported.
The first step in a WTO action, according to the report, would be for the U.S. and EU to formally request consultations with Beijing. If those talks fail, the next step would be to request that a WTO panel hear the complaint — a process that can take years, according to Reuters.
Critics have long complained that China artificially benefits Chinese manufacturers by restricting exports of raw materials used in steel, semiconductors and other products.
This should be fun to watch…..