Failure to pass TPP harming domestic agriculture


#1

To those of you who love tariffs and hate the Trans-Pacific Partnership,

This from a press release today from the Oregon Cattlemen’s Association:

“The importance of the TPP agreement is in getting lower tariffs in export markets,” Wise said. “If we don’t get TPP enacted, we have a distinct disadvantage for Oregon beef producers compared to our competitors in other countries.” As an example, he noted that Australia has a much lower tariff for their beef entering Japan. Passing TPP would level the playing field for U.S. exporters.
Oregon Cattlemen’s Association news via FlashAlert.Net


#2

Yep. Free market concepts have to drive the market. Tariffs have a place, but primarily to punish those who cheat or those who are enemy states/regimes. Ensure the deals even it out for all and let innovation and creativity win the day.

Now, the manipulation of China’s currency is an issue. So as far as I am concerned “like minded” economies should break down barriers, cheaters should pay a price, even if it includes some tariffs, or some form of equalizer. Romney rightfully took aim at China’s currency manipulation in 2012, Trump is correctly doing so now and you can be sure nations will alter their tactics if there are consequences. This doesn’t have to become a trade war per se, but rotating impacts on different industries until the Chinese understand.

Or, if the WTO and IMF cannot or will not step in, America could ban Chinese purchases of T-bills and other American assets, this would change their position very quickly. The biggest contributor to the U.S/China trade deficit is probably this currency issue. To support this TPP in point once again, it cuts China out of major trading opportunities with Aussies, Japan and others. It’s a very effective way to “shut them out”.

The obvious differences between Romney and Trump on this issue are that I take Trump as an interventionalist (a la Canadian economy) and big government candidate. This in and of itself, will ensure failure for the economy as the world is becoming more globalized.