Cato's Center for Trade Policy Studies -

Free Trade Is a Boon to the Environment

admin — Thu, 08 Oct 2009 16:08:44 -0400

by Sallie James
RealClearMarkets.com, October 8, 2009

If summitry was a sure predictor of activity, then climate change would be heading towards a golden era. The UN climate summit on Tuesday and the G-20 summit that just wrapped up in Pittsburgh both attempted to relight the dying embers of hope that the December climate meeting in Copenhagen can lead to a successor agreement to the Kyoto Protocol, due to expire in 2012.

If the G-20 leaders really want to demonstrate commitment to action on climate change, they would do well to be more careful about sticking to their commitments when it comes to open international trade. [read more]

Obama's Protectionist Policies Hurting Low-Income Americans

admin — Tue, 29 Sep 2009 17:44:37 -0400

by Daniel Griswold
The Washington Times, September 29, 2009

President Obama and the other Group of 20 leaders delivered their obligatory warning against protectionism at last week's summit in Pittsburgh. But at home the U.S. president continues to conduct his own trade war, not only against imports from China and other developing countries, but against the most vulnerable of American consumers.

America's highest remaining trade barriers are aimed at products mostly grown and made by poor people abroad and disproportionately consumed by poor people at home. While industrial goods and luxury products typically enter under low or zero tariffs, the U.S. government imposes duties of 30 percent or more on food and lower-end clothing and shoes - staple goods that loom large in the budgets of poor families.

To win favor with organized labor and other opponents of trade liberalization, Mr. Obama has either defended or actually raised barriers on precisely those products of most interest to poor households. [read more]

BOOK REVIEW: World Peace Through World Trade

content editor — Fri, 25 Sep 2009 15:22:20 -0400

Reviewed by William H. Peterson
The Washinton Times , September 21, 2009

MAD ABOUT TRADE: WHY MAIN STREET AMERICA SHOULD EMBRACE GLOBALIZATION

by Daniel Griswold

Advised Ludwig von Mises in 1922: "The slogan 'Away With Foreign Goods!' would lead us, if we accepted all its implications, to abolish the division of labor altogether. For the principle that makes 'international' division of labor seem advantageous is precisely the principle which recommends division of labor in any case."

Rising trade, division of labor and globalization are advancing Main Street America, writes Daniel Griswold of the libertarian Cato Institute in Washington. He hails the advance and presses for still more growth-oriented, peaceful trade via competitive imports. This despite some persistent American push for protectionism, including demands to "Buy American."

Case in point of the latter is the Lou Dobbs 2004 book "Exporting America," in which CNN-TV host Mr. Dobbs dismisses worries for consumers, saying, "I don't think helping consumers save a few cents on trinkets and T-shirts is worth the loss of American jobs." Too, then-Sen. Barack Obama in 2007 echoed this very fear before a cheering union audience that people "don't want a cheaper T-shirt if they're losing a job in the process." [read more]

Crash Course in Global Economics

admin — Mon, 21 Sep 2009 10:21:31 -0400

by Daniel J. Ikenson and Alec van Gelder
The Korea Times , September 21, 2009

G20 leaders are convening in Pittsburgh this week during a sticky time for global trade relations. Brazilians, Canadians, Mexicans and Chinese are angry with the Americans.

The Indians and the Chinese are furious with each other, as are the Europeans and the Americans. Most of this stems from new trade restrictions imposed despite repeated pledges from G20 countries to avoid protectionism.

To quell the anger and gain a constructive focus in Pittsburgh, leaders must recognize how outdated it is to view the world in terms of "us" versus "them." A crash course on the global economy is in order. [read more]

Free Trade Bulletin no. 39: Burning Rubber: Proposed Duties on Chinese Tires Whiff of Senseless Protectionism

admin — Fri, 11 Sep 2009 16:34:29 -0400

by Daniel Ikenson

September 11, 2009

Despite the controversy that seems to color all portrayals of U.S. trade with China, the bilateral relationship has held up remarkably well to the benefit of both countries. But, "things could go south quickly, if President Obama grants the wish of the United Steelworkers union to impose import restrictions on Chinese-produced passenger tires," according to Daniel Ikenson, associate director of the Cato Institute's Center for Trade Policy Studies and author of the new Cato paper, "Burning Rubber: Proposed Duties on Chinese Tires Whiffs of Senseless Protectionism."
To read the complete study, click here.

Trade Policy Analysis no. 41: A Harsh Climate for Trade: How Climate Change Proposals Threaten Global Commerce

admin — Wed, 09 Sep 2009 09:13:47 -0400

by Sallie James

September 9, 2009

The upcoming Copenhagen conference on climate change has led to calls for the United States to adopt a climate change abatement program in advance. In an effort to minimize adverse effects on certain domestic industries from higher energy costs, however, proponents of a cap-and-trade program for greenhouse gas emissions have loaded up their proposal with giveaways, loopholes, and barriers to imports from nations with less stringent emission caps. These trade measures are likely to be ineffective at best and harmful to U.S. interests at worst. [read more]

Manufactured Objections

admin — Thu, 20 Aug 2009 10:30:52 -0400

by Daniel J. Ikenson
The National Review (Online), August 20, 2009

During the past few years, America has grown increasingly averse to trade. This trend is the product of myths perpetuated by campaigning politicians, captured policymakers, TV charlatans, and woefully ill-informed newspaper columnists. Harold Meyerson always comes to mind as emblematic of this last category, so his fallacy-laden diatribe about the decline of U.S. manufacturing in Wednesday's Washington Post is par for the course.

Meyerson makes a few claims that cannot be allowed to stand. For example, he asserts: "We don't [make things] any more — at least, not like we used to. Since 1987, manufacturing as a share of our gross domestic product has declined 30 percent." [read more]

Trade Policy Analysis no. 40: Restriction or Legalization? Measuring the Economic Benefits of Immigration Reform

admin — Thu, 13 Aug 2009 16:00:25 -0400

by Peter B. Dixon and Maureen T. Rimmer

August 13, 2009

By the latest estimates, 8.3 million workers in the United States are illegal immigrants. Proposed policy responses range from more restrictive border and workplace enforcement to legalization of workers who are already here and the admission of new workers through a temporary visa program. Policy choices made by Congress and the president could have a major economic impact on the welfare of U.S. households. This study uses the U.S. Applied General Equilibrium model that has been developed for the U.S. International Trade Commission and other U.S. government agencies to estimate the welfare impact of seven different scenarios, which include increased enforcement at the border and in the workplace, and several different legalization options, including a visa program that allows more low-skilled workers to enter the U.S. workforce legally. [read more]

Paying the Price for Obama's Lack of a Trade Policy

admin — Fri, 24 Jul 2009 10:32:50 -0400

by Daniel J. Ikenson and Scott Lincicome
The Los Angeles Times, July 24, 2009

President Obama is neither a committed free-trader nor a hard-core protectionist. But his continuing failure to commit to a pro-trade agenda amounts to de facto protectionism and subverts his economic and foreign policy objectives.

Reacting recently to a provision in the climate change bill that would impose trade penalties against nations that do not limit carbon emissions enough, the president said, "At a time when the economy worldwide is still deep in recession and we've seen a significant drop in global trade, I think we have to be very careful about sending any protectionist signals."

Free Trade Bulletin no. 38: As Immigrants Move In, Americans Move Up

admin — Tue, 21 Jul 2009 04:00:20 -0400

by Daniel T. Griswold

July 21, 2009

Congress and President Obama may tackle the controversial issue of immigration reform as soon as the fall of 2009. If past congressional debates are any guide, one point of contention will be the impact of reform on the American underclass.

In 2006, and again in 2007, the U.S. Senate debated "comprehensive immigration reform" designed to curb illegal immigration by ramping up enforcement while providing expanded opportunities for legal immigration. Both bills would have legalized several million immigrants currently in the United States illegally and created a temporary visa program to allow more low-skilled workers to enter the country legally in future years. [read more]