Sunday, April 18, 2010

Trade Protectionism of the U.S

The Western economists propagandized the "Free Trade." The concept free trade implies to trades among countries without any quote and tariffs. The main argument was competitive advantage of each nation, for example father of modern economics Adam Smith had supported the free trade. And, the Western world urged developing countries, the World Trade Organization was established to oversee trade activities and deal with disputes, in 1998.
Well, no use of telling who history of world trade. My point from this article is to point out how the U.S is following wisdom "Do What I tell you, Don't do what I do."

The U.S government imposed 15% tariff on Chinese made tyres. The argument was unfair competitive advantage of Chinese manufacturers: undervalued renminbi(the Chinese currency. Moreover, the Japanese automakers had accepted "voluntary tariff" on the cars. The Indonesian manufacturers had payed the same amount with the French manufacturers tariff of roughly $8 billion. Moreover, the U.S Congress is trying to impose more tariffs on the Chinese products if China doesn't establish fair value of the renminbi.
We don't know what will happen, whether countries start "trade war" or not, but it's going to hurt each of us.
Hence, the U.S propaganda of free trade is manipulated, like author is changing the content of book as he likes.

No comments: