Tag: free trade

Ohio Senator Portman, in Final Policy Effort in Senate, Calls for More Global Trade

Bradley Vasoli

U.S. Senator Rob Portman (R-OH) retires at the end of the year, but before he does, he hopes to have a hand in reenergizing openness toward global trade, a policy perspective that hasn’t been ascendant in the Biden administration or the preceding Trump administration. 

In a guest column for the D.C.-based Hill newspaper, Portman and his Democratic Delaware colleague Chris Coons called on Congress to pass a legislative package facilitating foreign trade agreements. The lawmakers particularly urged enactment of their Trading System Preservation Act. The act would enable the president to iron out industry-specific trade deals with other nations that are part of the World Trade Organization (WTO) and would allow negotiation of comprehensive agreements with Ecuador, Taiwan, the United Kingdom and Kenya. 

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Commentary: Free Trade and the ‘Cheap Goods’ Delusion

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by Spencer Morrison   Between 1348 and 1352 a monstrous plague – the Black Death – ravaged Europe. The disease struck young and old, men and women, saint and sinner alike. Half the population died. Whole cities disappeared. Western Civilization was on the brink of collapse. What caused this plague? Bad smells. Foul odors. The stench of decay. This was considered unequivocal, scientific fact – that is until we invented the microscope and discovered that an entire world of miniature animalcules existed right under our noses. In time we realized that these creatures caused illness: germ theory was born, and with it died the centuries-old miasma theory of disease. Received wisdom – no matter how venerable – should always be treated with a healthy dose of skepticism. This is especially true when it comes to economics, as money brings out hucksters who sell snake-oil bottled as genuine emollients. Bluntly: many economists are crooks and liars. The biggest lie they tell us is that international free trade makes stuff cheaper. It doesn’t. It simply enriches the white-collar gangsters who run our banks – the very people who so often fund “libertarian” think tanks. Go figure. The Bigger the Lie . . . Free-trade theory is…

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China, Tariffs, Trade, Cost and Prices: An Explainer

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by Rick Manning   Stock markets go up and down based upon the latest trade rumors. Predictions of price hikes make headlines, yet the inflation rate remains at the levels, 2.0 percent at last count, desired by the Federal Reserve. What is going on?  And is this even really a trade war with China at all, or is it part of something much bigger?  These are questions that should be asked but are often lost to click-bait headlines.  So, here are a few thumbnail answers that will hopefully help you understand what is going on. Question: Are President Trump’s use of tariffs against China part of a trade war? Those who try to put tariffs on goods made in China into this context are deliberately narrowing the real challenge in the economic relations between the U.S. and China. The tariffs are designed to restructure America’s trade relations with China, but when you examine the key demands from the recent attempts to create a new economic partnership with China, they are mostly focused upon protecting patents, ending forced technology transfers to the Chinese government and stopping Chinese currency manipulation which always puts U.S. goods at a competitive disadvantage with Chinese goods. Traditional trade deals…

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Ohio Democrats Negative on New NAFTA Deal Known as USMCA

Jason M. Reynolds

  President Donald Trump’s Administration is expected to speed up the procedural steps necessary for a Congressional vote on the United States-Mexico-Canada Agreement (USMCA), media outlets report. Trump should issue a “statement of administrative action” soon, Reuters reported. U.S. House of Representatives Speaker Nancy Pelosi said that was “not a positive step,” Reuters said, adding she wanted more time for lawmakers to review the agreement. The Republican National Committee has questioned why Democrats under the leadership of Pelosi and Sen. Chuck Schumer (D-NY) are holding up USMCA. Pelosi said Mexico must change its labor laws, while Schumer said there are “outstanding issues.” Several Ohio Democrats have posed roadblocks as well. In February, in response to Trump’s State of the Union mention of USMCA, U.S. Rep. Tim Ryan (D-OH-13) said: “While I continue to be supportive of renegotiating NAFTA, what I have seen so far does not do enough to protect the hardworking men and women of my district.” “For far too long, I have seen firsthand how unfair trade agreements have harmed our manufacturing industry in Ohio and across the United States. Just this week the GM plant in my district started its first round of layoffs. I join with my…

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Lt. Gov. McNally Discusses New North American Trade Agreement With His Peers at White House Meeting

Jason M. Reynolds

Lt. Gov. and Sen. Randy McNally (R-TN-05) on Wednesday participated in a panel discussion at the White House with lieutenant governors from across the country. The discussion featured National Economic Council Director Larry Kudlow and White House Chief of Staff Mick Mulvaney and centered on the new United States-Mexico-Canada Agreement (USMCA), according to a statement from McNally’s office. McNally tweeted, “President @realDonaldTrump has committed to putting America first in all things, especially trade. I was grateful for the opportunity to learn about the new agreement and how it will affect our economy.” President @realDonaldTrump has committed to putting America first in all things, especially trade. I was grateful for the opportunity to learn about the new agreement and how it will affect our economy. pic.twitter.com/zUlHnCqhlc — Randy McNally (@ltgovmcnally) March 27, 2019 He also tweeted, “I was honored to join my fellow lieutenant governors from across the nation at the @WhiteHouse to discuss the state of our economy and how #USMCA will impact our states. Free trade is beneficial for our economy, but only if it is fair trade.” McNally said in his statement, “I was honored to join my fellow lieutenant governors from across the nation to discuss the…

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Commentary: Contrary to Some Conservatives’ Slavish Devotion Free Trade Dogma, Trade Deficits Do Matter

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by Spencer P. Morrison   Steve Hanke recently set out to prove “why President Trump’s trade message and protectionist policies are rubbish” in a Forbes article. Instead, the Johns Hopkins University economist exposed himself as a word-mincing, logic-twisting sophist – just like every other intellectual mercenary associated with the faux-libertarian propaganda mill that is the Cato Institute. Hanke’s argument: trade deficits don’t exist, China is not screwing America, and President Trump (the village idiot) is jousting windmills. The real problem is lazy Americans who shop-til-they-drop and demand welfare “gimmies” from Uncle Sam. Faust’s Bargain Hanke begins his argument by explaining that trade deficits don’t really exist. Instead, the goods trade deficit is simply one half of the equation: In economics, identities play an important role. These identities are obtained by equating two different breakdowns of a single aggregate. Identities are interesting, and usually important, by definition. In national income accounting, the following identity can be derived. It is the key to understanding the trade deficit. (Imports – Exports ) ≡ (Investment – Savings) + (Government Spending – Taxes) Given this identity, which must hold, the trade deficit is equal to the excess of private sector investment over savings, plus the excess of government spending over tax revenue.…

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As President Trump’s Successes with Trade Grow, Globalist Republicans’ Grip on ‘Free Trade’ Orthodoxy Slips

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by Michael Noyes   Eight hours before the first polls closed on November 8, 2016, the late Charles Krauthammer appeared on Fox News and made a prediction. Should Trump win, he said, it would “irreversibly” change the Republican Party. “Particularly the most obvious issues will be immigration and trade,” Krauthammer explained. Nearly two years into the Trump presidency, a look at debates from key Senate races may offer a hint at the party’s future on trade. The old guard is sticking with its free-trade roots. “I am for freedom, free people and free markets, and I am not a fan of tariffs and never have been,” Tennessee Republican Marsha Blackburn said in her debate with Democrat Phil Bredesen. “But China has had a trade war on us for decades, and if we’re in a trade war, for goodness sakes let’s make sure we win this. Now, I hope that we get these tariffs over and done with because they are not good for Tennessee.” Moments later Blackburn was asked to name one Trump policy she disagreed with. “One is the tariffs . . . ” On this the two candidates agreed. “The tariffs we have right now are hurting Tennessee…

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