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Ford Motor Co. just announced it will move one of its auto manufacturing plants (2,700 factory workers) from Michigan to Mexico.
United Technology disclosed a long-time U.S. manufacturing center would be relocated to Mexico.
Donald Trump is saying now USA should build the wall not to keep immigrants out, but to keep our jobs here.
in the case of Ford, U.S. taxpayers benefited with credits and loans during the auto bailout of 2008-09 to help it stay competitive
Mexico is a country where there is little environmental regulation, lower requirements for Jobs market, and all the products produced are returned and sold duty free in the good old USA.
But if I were Mexico, I wouldn’t get overconfident about the future. For every Mexico, there is another country willing to lower wages and environmental standards to get the next industrial country’s expansion. If an international corporation is experiencing problems with a union, there are plenty of countries where even mentioning the word “union” will land you in jail or a shallow grave.
International trading agreements now require U.S. goods producers to chase the lowest common economic denominator across the globe.
thinking of Bretton Woods.
1944, The 44 countries of the allied coalition met in Bretton Woods, and commenced to plan the post-world War II international economy.
Most of Europe was destroyed,
there was massive population dislocation.
A method to stabilize currency values was developed and both concepts for the International Monetary Fund and the World Bank were put in place.
is not the TTIP another kind of Bretton Woods in a sense?
April 2016, the 13th round of talks about Transatlantic Trade and Investment Protocols agreement (TTIP).
this trade liberalization could create huge worldwide economic benefits?
In the 1990 or earlier – there were real barriers to international trade.
Tariffs, import quotas and many varieties of protectionist legislation did appear to limit the flow of goods between nations.
Trade liberalization can, according to many economists, create huge worldwide economic benefits.
The most relevants agreements in last years are
China joined the World Trade Organization (WTO), and WTO rules lowered worldwide trade barriers.
European Union as a single market across more and more of Europe.
And Bilateral and regional trade agreements, too numerous to mention, continued to pop up on every continent.
Paul Krugman, (Nobel Prize) thinks past gains from liberalization were important, but now says that cutting the tiny remaining barriers to trade “isn’t going to give you a boost that you’ll be able to tell from statistical noise.”
In TTIP, tariffs now average less than 3% on transatlantic trade, in both directions.
The real agenda of the TTIP negotiations is not to eliminate the last few trade barriers, but to create pressure for downward harmonization of social and environmental regulations, adopting the weaker of American or European standards.
American standards are usually, though not always, weaker than European ones. Thus downward harmonization frequently means imposing lax U.S. rules on European countries that have had, or would prefer to have, stricter regulations.
there are enormous benefits from multiple areas of European regulation.
In chemicals policy,
In climate change and renewable energy,
there are more than 1.2 million jobs in renewable energy industries throughout the EU.
Are The benefits of just these two areas of European regulation, almost as valuable as the entire economic benefit of TTIP to Europe?
many other valuable areas of regulation would also be at risk?
is free trade just another word for nothing left to lose?
Tourism business, import export business, traders, from Pakistan to China….
Obama warned that it could take a decade for the U.K. to negotiate a new trade agreement with USA if it leaves the EU.
"the U.K. would not be able to negotiate something with the United States faster than the EU."
"Our preference would be to work with this large block of countries,"
Britain would go to the "back of the queue" for a trade deal in the case of Brexit.
"The bond between our two countries is unbreakable," Obama said.
Hillary Clinton, shares Obama's view on Brexit.
Clinton "believes that trans-Atlantic cooperation is essential, and that cooperation is strongest when Europe is United."
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Obama is trying to light a fire under stalled talks about a trans-Atlantic trade deal,
“the majority of people still favor trade. They still recognize, on balance, that it’s a good idea.”
Obama mounted a strong defense of international trade deals in the face of domestic and foreign opposition, saying it’s “indisputable” that such agreements strengthen the economy and make U.S. businesses more competitive worldwide.
Obama will send an additional 250 military personnel to Syria to help local forces fighting the Islamic State group,
The move will significantly increase the U.S. presence in Syria
About 50 U.S. special operations forces are already operating in Syria.
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