Thursday, August 16, 2018

Trade War: Clarified Standards and Goals

I've read several articles about the views of the Chinese after their leadership meeting. I think it was a very good idea for them to produce a unified view of their national policies and standards. It will not only help everyone to understand them, but it will help them to stay on course when moving forward into concrete negotiations.

The first thing it brought to mind was discussions recently about Brexit between the U.K. and the EU. Repeatedly the EU representatives have mentioned their four goals for the freedom of movement of people, capital, goods, and services within the EU. This makes it clear how you must relate to them. It's very useful.

Today NAFTA, the EU, the TPP, China, and some other groups are attempting to improve trade relations in some major ways. Knowing where each nation or group stands is very good.

The NAFTA nations tend to believe the previous concept of negotiating about individual products or sectors of the economy was useful, but that we can do better. Each speaks of modernizing the trade deal. In recent years in America there has been discussion of moving to "free trade" or "fair trade" and I believe the recent idea of Zero-Zero (wherein each side of a trade deal would seek to find all product areas or services where tariffs, subsidies, and other market impediments can be reduced to Zero) is worth attempting.

So now, the question is how we can match one trade bloc to the others to move us closer to the Zero-Zero goal, but without 'breaking' the standards of the EU or the Chinese or of other trade blocs.

I won't go into detail in this post. I want to leave this one short. But, I shall attempt to discuss these relationships in other posts very soon.

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