About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (November 2016)

handle is hein.amenin/aeiaaru0001 and id is 1 raw text is: Key Points * The language of the Trump campaign indicates possible major changes in American trade policy. These changes should not focus on eliminating or drastically reducing the trade deficit, as the evidence shows this is unlikely to create jobs. * Our biggest trade relationship, with China, has multiple problems. Currency manipulation wins attention but may be an outdated concern. Right now, Chinese subsidies are blocking American exports and China is stealing intellectual property. The US should strongly consider retaliation in these areas. * Both Americans who benefit from trade and US trade partners would be immensely reassured if the restrictions the Trump administration finds necessary are coupled with steps to encourage more trade. An example is seeking a free trade agreement with the United Kingdom. Only a few people know what President-elect Donald Trump truly wants to do about trade. For the rest of us, constant conjecture about the grand vision is much less valuable than evaluating specific policies. These policies must fit at least to some extent with what the president-elect and his staff said during the campaign. Fortunately, the campaign offered plenty of trade material to work with. The following recommendations may or may not match the Trump administration's eventual views, but they should be close enough to be worth consideration: (i) Do not try to zero out the trade deficit. It will not create jobs. (2) Focusing on China makes more sense than focusing on NAFTA. Regarding China, currency manipulation may not matter while subsidies and theft of trade secrets definitely matter. (3) It would reassure Americans and American trade partners if positive steps accompanied new barriers. A free trade deal with Britain, for example, has many advantages. (4) There are also unilateral actions that would make any trade policy better. These range from compiling information on trade cheaters to streamlining corporate taxes. The Trade Deficit The rhetoric of the Trump campaign suggests that the net effect of planned changes in US policy will be to limit trade rather than expand it. But this general observation obscures a wide variety of possibilities. The primary issue-more important than the North American Free Trade Agreement (NAFTA), more important than 45 percent tariffs on China-is how to treat the trade deficit. AMERICAN ENTERPRISE INSTITUTE

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most