Primarily, we can see which considerations are taken in to account, and how decisions actually come down.
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FreeRepublic , LLC PO BOX 9771 FRESNO, CA 93794
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The facts of this case indicate that imposing the USITC's recommended quota would not likely benefit the domestic producing industry and instead would cause imports to shift from China to other offshore sources.
I agree with this. I am not against trade at all, hence this company probably would not get 'overall' protection had I been elected President.
However IMO, it will be a much better boon to America to have that shift. China is not a huge boon market for the US.
If we say, spread $50 billion worth of imports from China, and spread them over say 20 competing smaller countries it will be MUCH better for the US.
First we can guarantee market access for other products under that scheme (let us in or don't get the plant)...Secondly in placing a plant in a smaller economy, it creates much better micro economic environments. For example, if we put an electric motor plant in the tiny island nation of Samoa, it would have several effects: First it would employ much of the population. Secondly it would be a massive boom in their economy. Wages would increase, but the products being shipped to the US would still have import price tags on them (albeit not China cheap, but still pretty darn profit making cheap). On top of that, US companies would be able to sell to these new consumers.
Where the tire meets the road is where we sell our goods. Trying to go cheaper cheaper all the time is not in our best interests.
It would still not 100% protect this company above, but the returns reaped would be much better overall. Old folks get their cheap scooters, the importers make money, and the markets we can tap will expand far greater and faster and our returns will be better.
Such a move though will in effect reverse PNTR. Its not anti-trade, just smart business IMHO.
The only real hitch here is that the electronics industry thinks, and is convinced, that China is going to be the next big tech boom.
Thanks for the ping.
This is an excellent example of how the federal bureacracy wastes our taxdollars in a futile and ineffective attempt to micromanage the economy. Just what the heck is the "pedestal actuator industry" anyway???
Negotiated import quotas and targeted tariffs are totally ineffective and usually do more harm than good. At best they provide only temporary benefit to very narrow special interests.
What IS effective are broad based revenue tariffs that apply to ALL imported goods, regardless of nation of origin. Such tariffs are typically much lower than targetted tariffs, usually between 10~20%, and provide an adequate buffer between goods that are produced under different sets of regulations and restrictions. Additionally, the revenue raised from revenue tariffs can be utilized to decrease other forms of domestic taxation, further stimulating domestic production of goods and making them more competitive without bureaucratic federal micromanagement.
Fundamentally, we believe that the U.S. government needs to devote more resources and put in place new programs to build wider expertise about China and to protect our industrial base from eroding as a result of our economic relations with China.
-- C. Richard DAmato, chairman
U.S.-China Security Review Commission
(How to improve U.S.-China relations )