Trade relations between the U.S. and China are heating up, with both countries bringing antidumping charges against the other — some in retaliation for earlier actions. With the House of Representatives primed to take up a bill allowing the U.S. to levy tariffs on Chinese imports to protest China’s currency intervention, China announced it was slapping a huge tariff on imports of U.S. poultry. This would up the chicken tariff to a minimum of 50.3 percent and a maximum of 105.4 percent on chicken products imported from the U.S. — an escalation from an earlier tariff tacked on by China in retaliation for the U.S. slapping a higher tariff on Chinese tires last year.
Last Friday, the House Ways and Means Committee approved H.R. 2378, the Currency Reform for Fair Trade Act. (Note to readers: whenever “fair trade” is used instead of “free trade,” it’s almost always supporting a protectionist policy.) Almost immediately on September 26 — though apparently not connected — China’s ministry of commerce announced that it had concluded a year-long antidumping investigation of U.S. poultry imports and concluded that the chickens were being sold to China at lower than production costs.
This was followed quickly by a September 27 announcement by the U.S. Department of Commerce that the People’s Republic of China and Mexico were unfairly dumping seamless refined copper pipe and tube, and the U.S. would be imposing dumping duties on those imports pending a thorough investigation by the International Trade Commission.
Currently, the ITC has numerous investigations in their final stages involving Chinese imports. Here’s the current list: Certain Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses from China and Indonesia; Drill Pipe from China; Magnesia Carbon Bricks from China and Mexico; Narrow Woven Ribbons from China and Taiwan; Seamless Refined Copper Pipe and Tube from China and Mexico; Seamless SLP Pipe from China; Woven Electric Blankets from China.
It’s not likely that these actions and others will advance President Obama’s goal of doubling exports in five years as part of an economic recovery plan. Important trade partners such as China and Mexico that have retaliated against some U.S. protectionist policies may encourage other countries to take action. Tit-for-tat trade remedies won’t improve U.S. competitiveness, but can undermine the international trading system.
Legislators in Maryland have disappointed the state’s wine lovers yet again by failing to pass a bill that would have allowed residents to receive wine via the mail. Sadly, the bill gained a sizable majority of the members (12-8) in the House Economic Matters Committee, but it was just shy of the 13 votes required (a majority of committee’s 26 members) before it could go for a full House vote. According to a memo produced by Marylanders for Better Wine and Beer Laws posted by wine writer Rob Garretson, three members were excused from voting, one because of religious views regarding alcohol and two others for unknown reasons. Something seems fishy here.
Staff at Marylanders for Better Wine and Beer Laws are optimistic that the state could open in 2011. This year, the legislature passed Maryland Winery Modernization Act, which Marylanders for Better Wine Laws says reduces regulation on Maryland wineries and allows wineries to open for the first time in Prince George’s County. In addition, the new law funded a study that could help build the case for direct shipping.
Nonetheless, such trade restrictions are just one problem with the prohibition-inspired, state-level regulatory morass. Some states have opened up, but problems abound. Even where shipping is allowed, myriad regulations and taxes needlessly burden consumers. The advocates of regulation make a host of arguments, some of which are quite similar to those made by the temperance movement to advance prohibition. Surely, responsible alcohol use is in order, but government bans and regulations are not necessary to protect us from ourselves. And the massive regulatory bureaucracy is not necessary to ensure simple ID checks to protect children. Instead, it largely serves politically organized players and government budgets.
Welcome to Episode 30 of everyone’s favorite podcast LibertyWeek, with your hosts Richard Morrison and Cord Blomquist and very special guest Jeremy Lott. We start with the end of the U.S. economy as we have known it: the $790 billion economic stimulus plan and its chilling consequences. We take note of Citigroup CEO Vikram Pandit’s pledge to work for $1 a year and celebrate some good news with Alabama’s plan to legalize beer with a higher alcohol content than most wines. We then enlist our listeners to defend against the War on St. Valentine’s Day and move on to Scandal Watch: Judd Gregg edition.
The highlight of our program comes with our interview with writer, raconteur and bon vivant around town Jeremy Lott. He talks about his book, The Warm Bucket Brigade: The Story of the American Vice Presidency, about Presidents’ Day and the best lunch to pack when hunting with Sarah Palin. Jeremy also takes on the much-anticipated Cool v. Drool Vice Presidential Snap Judgment Lightning Round. Finally we take some legal counsel with this week’s edition of Olympic News.
When was the last time the U.S.’s top trade official wasn’t a strong advocate for free trade? It may happen in the new Obama Administration.
According to numerous news reports, President-elect Obama has offered the post of USTR to Rep. Xavier Becerra (D-Calif.), a 16-year member of the House, who serves on the powerful Ways and Means Committee that oversees trade and is a close ally of Speaker Nancy Pelosi — his website lists him as “Assistant to the Speaker.”
Becerra’s record on supporting free trade is a mixed bag. He voted to hold up the Colombia Free Trade Agreement. He voted for the Peru free trade agreement, but against the Oman FTA and the Central America-DR FTA. He is a strong proponent of including non-trade issues in trade agreements, particularly labor and environmental provisions that could act as protectionist trade barriers by forcing poor countries to adopt rich countries’ standards.
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