Sunday, July 1, 2018

More Trade Talk -- Special Arrangements

An Old English "Friend"

I read this today about the potential for a trade deal,

"We already know the American demands for a trade deal Total access to provide NHS services by American HMOs, the ability to import American growth hormone feed cattle and pigs plus chemically treated poultry. The Americans make no secret that these demands are non negotiable if the UK wants a deal with Trump."


My Response

That sentiment may be based on honest belief and hear-say, but I disagree that it has to be accepted that America will make such demands. I hope John Bolton isn't trying to coerce people. That is just plain awful and everyone should simply reject that. I hope he isn't working on behalf of some domestic interests aside from the president's agenda as that would be criminal.

The idea of a fair deal is that both sides get something they want and neither forces the other.


Moving Forward

If there are a thousand things you agree on and three things you don't, do you scuttle a deal because of the three or do you work out the special arrangements for those three?

It seems to me that it may be possible to go ahead with changing the tariffs on the one thousand, down to zero - zero, and then work on the other issues. Each nation can look at its own trade deals to see if that is a possibility. It seems to me this can be done within the WTO without further ado.

What will happen on those special arrangement issues? I don't know, but America has some things we consider special and which must remain protected, so it's to our benefit to discuss those without trying to force on someone else the very thing we want to prevent with regard to our own issues.

If we can agree to make changes rapidly while still within the WTO, then it will give everyone an economic boost and confidence to work out remaining issues.

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