Trade expert: U.S. protectionism risks trade war, distorts economic growth
Published: 24/09/2009 05:00
The U.S. decision to increase Chinese tire tariffs risks starting a full-scale trade war, distorts economic growth and ultimately hurts consumers, according to a U.S. trade expert. “Every action has a reaction. This could lead to further protectionism on China’s part. At the very least, this sort of protectionist policy creates a tense trade environment,” he said. Eldred has been in international trade and distribution for 20 years. His company, Golden Hill Foods, imports spices and other cooking ingredients from around the world, including China. Eldred believes that trade protectionism in general distorts economic growth by supporting uncompetitive industries. “In this case, the tire tariff will have a negative impact on the auto industry as automakers seek the least expensive alternatives for inputs. Ultimately, the U.S. consumer will suffer as they will not have access to the lowest possible price for cars,” he said. As an importer of food ingredients, Eldred is concerned that this decision may inspire more cases of U.S. producers looking for protection against less expensive imports from China and elsewhere. “It’s a slippery slope that could lead to big increases in U.S. protectionism. In the end, U.S. consumers will feel it in their wallets when they realize that they can’t afford to buy the same quality cars, TVs, appliances, clothing and other consumables. They will certainly let their feelings be known at the ballot box. The end result is volatility both politically and economically,” he said. Eldred said the trade dispute should be addressed and dealt with at the World Trade Organization level to prevent escalation into other sectors of the economy. He further pointed out that, in today’s interwoven global economy, a thorough cost-benefit analysis needed to be conducted to understand what the true “downstream” effects are of punitive tariffs levied on imports to satisfy one interest group or another. He gave an example of a handful of U.S. tire companies operating in China now. “How does this decision affect them? How about rubber futures on the global commodity exchanges? And does this have a significant effect on raw material suppliers to related industries?” he questioned. Eldred said U.S.-China trade relations also had broader implications. “Like it or not, the U.S. and China are partners in dealing with geo-political issues around the world. Our dealings with China on the economic front have an impact on how we work together as partners on issues such as North Korea (the Democratic People’s Republic of Korea), Iran and an assortment of regional conflicts,” he said. “If we are dealing with China in a way that is perceived as completely self-interested, then they will reciprocate in kind with regards to these issues,” he warned. Eldred said the Obama administration should push for the reopening of the Doha round of world trade talks. “This would show good faith in an effort to address some of the unsolved issues around global trade, particularly with respect to the developing markets’ attempts to gain access to areas of the U.S. economy previously protected.” Being in international trade for about 20 years, Eldred always has the belief that trade among countries is imperative to raising the quality of life for everyone. “Without international trade, consumers would be limited to products produced in their own countries.” “As the world continues to globalize, economies will seek the most cost-effective inputs to increase the well-being of its citizens. Trade wars distort that growth and ultimately consumers suffer,” he added. VietNamNet/Xinhuanet
|
Provide by Vietnam Travel
Trade expert: U.S. protectionism risks trade war, distorts economic growth - International - News | vietnam travel company
You can see more
- ASEAN Community Exhibition hold in Danang
- Vietnam and U.S. travel societies to jointly launch tourism products
- Hung Kings’ death anniversaries commemorated in Berlin
- Tourism cooperation potential between Vietnam and Indonesia
- OPEC, non-OPEC to look at extending oil-output cut by six months
- Events welcome Italian friendship
- 70,000 sea tourists travel to Vietnam
- PM wants stronger oil and gas cooperation with Russia
enews & updates
Sign up to receive breaking news as well as receive other site updates!
- Hanoi ranked top 3 cuisine in the world in 2023
- Beautiful resorts for a weekend escape close to Hanoi
- Travel trends in 2023
- In the spring, Moc Chau is covered in plum blossoms.
- The Most Wonderful Destinations In Sapa
- Top 3 Special festivals in Vietnam during Tet holiday - 2023
- 5 tourist hotspots expected to see a spike in visitors during Lunar New Year 2023
- How To Make Kitchen Cleaned
- Health benefits of lime
- Cooperation expanding between Havard University and Vietnamese universities
-
vietnam travel
http://www.vietnamtourism.org.vn " Vietnam Tourism: Vietnam Travel Guide, Culture, Travel, Entertainment, Guide, News, and...
-
Vietnam culture, culture travel
http://travel.org.vn " Vietnam culture
-
Vietnam travel, vietnam travel news, vietnam in photos
http://www.nccorp.vn " Vietnam travel, vietnam travel news, vietnam in photos
-
Vietnam tourism
http://www.vietnamtourism.org.vn " The official online information on culture, travel, entertainment, and including facts, maps,...
-
Vietnam Travel and Tourism
http://www.vietnamtourism.org.vn/ " Vietnam Travel, Entertainment, People, Agents, Company, Vietnam Tourism information.
-
Information travel online
http://www.travellive.org "Information travel online