Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘NAFTA’

Globalization’s Wrong Turn

Posted by hkarner - 12. Juni 2019

Date: 11-06-2019
Source: Foreign Affairs By Dani Rodrik

And How It Hurt America

Globalization is in trouble. A populist backlash, personified by U.S. President Donald Trump, is in full swing. A simmering trade war between China and the United States could easily boil over. Countries across Europe are shutting their borders to immigrants. Even globalization’s biggest boosters now concede that it has produced lopsided benefits and that something will have to change.

Today’s woes have their roots in the 1990s, when policymakers set the world on its current, hyperglobalist path, requiring domestic economies to be put in the service of the world economy instead of the other way around. In trade, the transformation was signaled by the creation of the World Trade Organization, in 1995. The WTO not only made it harder for countries to shield themselves from international competition but also reached into policy areas that international trade rules had not previously touched: agriculture, services, intellectual property, industrial policy, and health and sanitary regulations. Even more ambitious regional trade deals, such as the North American Free Trade Agreement, took off around the same time.

In finance, the change was marked by a fundamental shift in governments’ attitudes away from managing capital flows and toward liberalization. Pushed by the United States and global organizations such as the International Monetary Fund and the Organization for Economic Cooperation and Development, countries freed up vast quantities of short-term finance to slosh across borders in search of higher returns. Den Rest des Beitrags lesen »

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The US has become totally unreliable

Posted by hkarner - 28. Dezember 2018

Date: 27-12-2018
Source: The Wall Street Journal By The Editorial Board
Subject: Trump’s Broken Nafta Promise

The U.S. still hasn’t lifted metals tariffs on Canada and Mexico.

An employee monitors the packing of Wavemaker Amber Ale at Big Storm Brewing Company’s brewing facility in Clearwater, Florida, March 13.

When President Trump signed his new Nafta accord last month with the leaders of Mexico and Canada, Prime Minister Justin Trudeau almost didn’t show up. The reason: Mr. Trump still hasn’t lifted the steel and aluminum tariffs as he promised he’d do if America’s two neighbors signed a revised trade deal.

A month later they’re still waiting. The delay is damaging the U.S. economy and America’s credibility as a trading partner. Though Mr. Trump likes to use tariff threats as a negotiating tactic, his Administration also promised relief from the levies he imposed under Section 232 of U.S. trade law. Den Rest des Beitrags lesen »

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The New and Not Improved NAFTA

Posted by hkarner - 12. Oktober 2018

Jeffrey Frankel, a professor at Harvard University’s Kennedy School of Government, previously served as a member of President Bill Clinton’s Council of Economic Advisers. He is a research associate at the US National Bureau of Economic Research, where he is a member of the Business Cycle Dating Committee, the official US arbiter of recession and recovery.

US President Donald Trump has called the United States-Mexico-Canada Agreement, which succeeds NAFTA, “the single greatest agreement ever signed.“ In reality, it is not as good as the Trans-Pacific Partnership, from which Trump withdrew the US upon taking office, nor is it particularly better than the agreement it replaced.

CAMBRIDGE – US President Donald Trump acts as if he has pulled off a smashing victory by replacing the North American Free Trade Agreement (NAFTA) – supposedly “the worst trade deal ever” – with the new United States-Mexico-Canada Agreement. But the truth is that, while this outcome is better than an end to free trade in North America, the USMCA is no improvement over the status quo.

Of course, this is Trump’s modus operandi: threaten to do something catastrophic, so people are relieved when things get only a little bit worse. That is what he did with North Korea, when he insulted its leader, Kim Jong-un, and threatened to rain down “fire and fury” on the country. Compared to nuclear conflict, his eventual meeting with Kim seemed like a triumph, even though it produced little actual progress. Den Rest des Beitrags lesen »

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Trump Tariffs Spark GOP Rift

Posted by hkarner - 7. März 2018

Date: 06-03-2018
Source: The Wall Street Journal

President tries to extract Nafta concessions while GOP congressional leaders work to derail proposal

President Donald Trump said last week he plans to impose tariffs on steel and aluminum. Shown, US Steel Corp.’s plant in Clairton, Pa.

House Speaker Paul Ryan warned Monday that President Donald Trump’s plan to impose tariffs on steel and aluminum imports could trigger a trade war, as the president sought to wrest economic concessions from Canada and Mexico by turning up pressure on the proposal.

Mr. Trump’s evolving trade policy drew harsh criticism from congressional Republicans, who said they are concerned the president’s new threats will provoke retaliation rather than draw concessions.

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” said a spokeswoman for Mr. Ryan (R., Wis.), referring to Mr. Trump’s statement last week that he planned to impose global tariffs of 25% on steel and 10% on aluminum.

Congressional Republican leaders aren’t ruling out potential legislative action aimed at blocking such tariffs, according to a Republican familiar with the matter. Any such legislative action would take the relationship between the GOP-led Congress and the Republican president into new waters.

Top Republicans overseeing trade policy have also begun circulating a letter to Mr. Trump, warning that tariffs are a bad idea. Den Rest des Beitrags lesen »

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How to Combat Populist Demagogues

Posted by hkarner - 14. November 2017

We will never know whether greater honesty on the part of mainstream politicians and technocrats would have spared us the rise of nativist demagogues like Donald Trump in the US or Marine Le Pen in France. What is clear is that lack of candor in the past has come at a steep price.

CAMBRIDGE – At a recent conference I attended, I was seated next to a prominent American trade policy expert. We began to talk about the North American Free Trade Agreement (NAFTA), which President Donald Trump has blamed for American workers’ woes and is trying to renegotiate. “I never thought NAFTA was a big deal,” the economist said.

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Why Trump Can’t Bully China

Posted by hkarner - 10. Februar 2017

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Trading in Trump’s Lies

Posted by hkarner - 3. Februar 2017

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Trump Puts Auto Makers, Trade Policy in Spotlight

Posted by hkarner - 5. Januar 2017

Date: 04-01-2017
Source: The Wall Street Journal

GM says only a ‘small number’ of Chevy Cruzes are sent to U.S. from Mexican plant

Ford Motor Co. on Tuesday scrapped a plan to build a $1.6 billion small-car factory in Mexico that Donald Trump had slammed, a move announced just hours after the president-elect knocked General Motors Co. on Twitter for importing compact cars from Mexico to sell in the U.S.

The developments escalate the tension over trade policy between Mr. Trump and U.S. corporations. Analysts say the auto industry has the most at stake over Mr. Trump’s vow to renegotiate the North American Free Trade Agreement, which has allowed car makers and suppliers to move production to Mexico in recent years without facing tariffs.

Shortly after his election, Mr. Trump took credit for saving jobs at an Indiana factory that air conditioning maker Carrier Corp. had planned to move to Mexico. Den Rest des Beitrags lesen »

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