Diamond Author
If we are going to have a cohesive world trade organization, and maintain civility, transparency, and fairness, then we are most likely going to have to be a little more careful in the future. We cannot and should not engage in trade wars, which lead to political impasse and hurt commerce, or even lead to unrelenting and lasting disputes, or war.
The United States felt it had no choice but to put tariffs on Steel and Tires coming from China, claiming China was dumping on US Markets, that is to say selling at below costs. The Chinese retaliated with tariffs on frozen chickens. Not long ago, I was discussing trade wars and how they escalate with a US-Russian post cold war scholar, Jesse Giraldo, who has an interesting perspective on such issues and so I asked him, "What are your thoughts on steel pipe dumping and that trade war fiasco brewing?"
Giraldo stated; as for China saturating our steel industry the issue seems to stem from basic market mechanics. If there is a demand for steel in a particular region, U.S or otherwise, suppliers move to fill that gap. If we don't want foreign competition to undercut our domestic business profit margins then we can simply petition to tariff their imports.
Okay, this is a good point and yet the steel is inferior, the iron ore used is not as pure, nor are their processes comparable, it's a problem, and although it is a lot cheaper, it's a problem. But we do have too much power with our unions and old industries with a strangle-hold on politics, this jeopardizes free-markets and trade, especially with steel. This administration and the last, and the prior to that have all engaged in protectionism, like our trading partners, so I agree.
On the issues of tires, many were knock-off brands, inferior, and not up to par with US tire safety standards, amongst other issues such as the rock bottom prices being sold into the US Markets. Next, I asked Giraldo what he thought about the BRIC Nations; Brazil-Russia-India-China and their push to de-thrown the US Dollar as the World's reserve currency. Jesse stated;
The real danger here though is not if it will happen, I think most analysts agree by now that this is the future we are going to have to deal with but how this will affect U.S prominence. China pushing for the Yuan as a global reserve currency is going to change things dramatically but I think the BRIC itself, the fact that these countries have identified a common interest and are working together is the bigger issue at hand in the long term.
To this, I'd have to say I concur, and thus, it is my hope that you too will wake up to what is going on out there, as these issues do indeed affect us all.
About this Author
Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you've enjoyed today's discussion and topic. http://www.WorldThinkTank.net. Have an important subject to discuss, contact Lance Winslow.
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