The BBC reports that Barack Obama has just signed into law the creation of a new trade task force, which will be responsible for finding and targeting “unfair trade practices” by US trading partners. China is clearly the main target of this task force:
US creates task force to target unfair trade practices
The US has also recently brought India before the WTO to force it to allow US meat producers to sell there. US meat produce is currently banned, supposedly due to Avian Flu concerns:
US challenges India poultry import ban at trade body
While China very clearly is manipulating its currency, I am personally very concerned about this new “task force”. It seems to complement FATCA perfectly: first the world’s banking system will be exposed to the US and now they will agressively nitpick all of the trading practices that they don’t like. I can’t comment on the India meat issue since I do not know the background behind the case, but I am worried that the US will try to force the EU to accept GM foods and crops (very controversial issue here). I imagine that they will continue their never-ending battle with Airbus as well. Seems like Apple is in trademark battles worldwide with Samsung, HTC and others – Maybe they’ll be” helping out” US companies to drag their competitors in court whenever the “foreign” product looks to overtake the US one.
What do you think? Is this a sign that the US is really getting desperate for cash/influence or is it a logical step towards reigning in actual “recalcitrant countries”? Personally I think that this is just an election tool for now and that this “trade force” will steer well clear of targeting China at first. I imagine that they’ll go after “the minnows” of the trading world world. Seems to be the US government’s preferred tactic: go after the little guy.
This is just lashing out and an attempt to divert attention away from the real issue which is that the US tax code for businesses is the most uncompetitive in the world.
It doesn’t matter how big your “task force” is when your biggest enemy is yourself there is no hope of winning.
Leaders of foreign countries should probably send Barack Obama thank you letters for handicapping American business as much as he does. If you read between the lines of his speeches you can see that he has a pathological hatred of American business. Very sad for America. The US will continue going downhill until he is replaced by a leader who understands and appreciates the contribution businesses make to a country’s economy.
Well said OMG! .. It doesn’t matter how big your “task force” is when your biggest enemy is yourself there is no hope of winning. .. It is really true!
More high-handed approach like FATCA only alienates friendly countries. The American press doesn’t talk about it, but the US employees many unfair tactics in developing countries.
I believe, only 10% of affected people (e.g. 6 million expats and about 30 million green card holders and immigrants in the USA) really aware of FATCA and FBAR. When they understand the impact full implications, there will be huge cry from them and their families around the world.
According to Bruce Krasting’s blog there is now a bill in Congress to essentially re-impose Smoot Hawley tariffs on imports from China.
Tariffs aren’t a bad idea for the US, really!
If the price of importation is lower than local production, everyone will import at the expense of local production. I think that in 2003-2004, the US enacted some legislation about steel producers to try to protect local factories.
I’ve had sooooo many of these conversations with people who have MBA’s today….. It’s a balancing act really.
Where I live, they do a pretty good job.
I think Brazil is better than alll of the Latin American countries because there was such a mix of everything here. I saw a girl today that was so white, I thought she was wearing makeup. Anyone that is of Indian of Asian descent, there’s no problem there because those groups are well represented here in the native population. And I haven’t seen or heard of the same stereotypes here that exist in America, thank goodness!
There’s everything here! If you want to work or invest your money with a trustworthy person, or business, YOU WILL have a positive return with Brazil. I’m really happy I moved here some years back.