Anti-trade has become a major political issue in both major political parties in the 2016 election and has forced the candidates for president to disavow foreign trade. Without doubt, automobile assemblers in Michigan and some other states have been hurt by NAFTA, even though, over all, there was a net gain in jobs in America.* The fact that those workers left out of the benefits of free trade did not get any Adjustment Assistance (for what this is, see below) is a failure of government and not of the trade deal. I suspect that few of those against foreign trade know of this program. This is the target they should be aiming at and not foreign trade. Below are excerpts from the Guardian and the Washington Post on the Trans Pacific Partnership. Bolding and underlining have been added for emphasis.
From the Guardian:
But the reality is that, if two sides willingly trade, it can be assumed
that both are better off; otherwise, one of them would refuse to trade.
So, while trade liberalisation may entail some (smaller) losses for
certain groups, these can – and should – be addressed through domestic
relocation and assistance schemes, such as America’s Trade Adjustment Assistance programme, [See note on the Trade Assistance Program below]and transition rules for affected industries, firms, and workers.
...................................................................
At a time when growth is failing to meet expectations almost everywhere,
the TPP thus seems like a good move. To be sure, because tariffs in the
TPP member countries are already low (with some exceptions, such as
Canada’s tariffs on dairy products and Japan’s on beef), the net benefit
of eliminating them would be modest (except for a few items that are
very sensitive to small price changes). But the TPP is also expected to
reduce non-tariff barriers (such as red tape and protection of state
enterprises); harmonise policies and procedures; and include
dispute-settlement mechanisms.
..................................................................
That would be a major loss. Allowing existing protectionist trade
barriers to remain in place – or worsen – would not only deprive
citizens in TPP countries of higher incomes; it would also deal a
damaging blow to international cooperation.***
And from the Washington Post:
The security effects of trade agreements can be significant — indeed, one could argue that this was the most
important thing about the North American Free Trade Agreement, the deal
that has caused DeLong such existential angst. It’s worth remembering
that prior to NAFTA, Mexico had a … let’s say “fraught” relationship
with the United States. NAFTA made it clear to U.S. policymakers that
Mexico was now a key partner and merited treatment as such. Which is why
the United States helped Mexico in the mid-1990s and during the 2008
financial crisis. And the lock-in effects of NAFTA also helped Mexico
transition from a one-party-dominated state to a true multiparty
democracy.****
The Trade Assistance Program The Trade Adjustment Assistance (TAA) Program is a federal program
that provides a path for employment growth and opportunity through aid
to US workers who have lost their jobs as a result of foreign trade.
The TAA program seeks to provide these trade-affected workers with
opportunities to obtain the skills, resources, and support they need to
become reemployed. The program benefits and services that are available
to individual workers are administered by the states through agreements
between the Secretary of Labor and each state Governor. Program
eligibility, technical assistance, and oversight are provided by the US
Department of Labor's Employment and Training Administration's Office of
Trade Adjustment Assistance.(https://www.doleta.gov/tradeact/factsheet.cfm)
* http://stopcontinentaldrift.blogspot.com/2016/07/the-american-economy-great-recovery.html
*** https://www.theguardian.com/business/2015/oct/30/tpp-trans-pacific-partnership-the-case-for-trade
**** https://www.washingtonpost.com/posteverything/wp/2015/05/07/the-trans-pacific-partnership-is-about-more-than-trade/
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment