Example if Necessity of Making Our Free Trade Agreement FREE and FAIR

[GHook93]

We have a FTA with South Korea, but it's anything but Free and anything but FAIR! We allow South Korea unfethered access to American Markets, but they place up sneaky non-tarriff trade barriers that amounts to Protectionism!

So the question is, why do we not renegotiate these agreements to make the truly free and FAIR? Why still allow these one-sided protectionism agreements?

Ford Comes Out Swinging Against FTA With South Korea | Economy In Crisis
American-made cars can compete and win globally, but we can’t afford a future with more closed markets to American exports,” the ad states.

According to the ad, for every 52 vehicles that South Korea’s automakers ship to America, U.S. automakers export just one there.

The South Korean government uses a whole host of non-tariff barriers to keep foreign-made vehicles out of the market. South Korea uses efficiency standards, high taxes, restricted advertising hours and the assurance of an income tax audit to discourage the purchase of American-made automobiles.

Those tools have been extremely effective. In 2009, the U.S. exported just 5,878 autos to South Korea. South Korea, on the other hand, exported 476,833 autos to the U.S.

Korea has what Ford describes as “one of the most closed automotive markets in the world.” Imports make up just six percent of the market, the lowest foreign market share of all Organization for Economic Development and Cooperation nations.

Even if the terms of the agreement were renegotiated, it would be up to South Korea to hold up its end of the bargain, which hasn’t always been the case with the Asian nation. In the 1990s, the U.S. and South Korea negotiated two auto-specific agreements that removed some of the most overt non-tariff barriers, South Korean officials just replaced them with less overt barriers.

Outright bans were simply replaced with exponentially higher insurance costs and other measures to discourage South Koreans from buying imports. Other measures, including excessively burdensome certifications processes were implemented to discourage foreign companies from exporting to South Korea

This crap is bullshit and consistent with most of our "Free" Trade Agreements. They are one-sided free trade against us, but allows the other to still practice protectionism! WTF!!!

 

[GHook93]

I am not always the biggest Ron Paul supporter, but this is a consistent theme that he preached during his presidential run. He stated, none of our Free Trade Agreements are truly free. He said they all structured to put America at a huge disadvantage.

The South Korean FTA is a prime example of what Professor Paul was talking about!

 

[antagon]

i personally believe the trade agreement mechanism is inane. i suggest we employ more sophisticated protections than these trade partners, rather than bothering with changing the policies which are indicated to do their own economy significant harm. if one looks at economics as a way a society can enjoy the wealth they create, these mercantile economies and their crude protections miss the boat. we should concentrate on seeing to it that we don't either.

 

[GHook93]

i personally believe the trade agreement mechanism is inane. i suggest we employ more sophisticated protections than these trade partners, rather than bothering with changing the policies which are indicated to do their own economy significant harm. if one looks at economics as a way a society can enjoy the wealth they create, these mercantile economies and their crude protections miss the boat. we should concentrate on seeing to it that we don't either.

What specifically do you suggest!

 

[antagon]

this is snatched from another convo in another thread.

antagonian protectionism entails broad subsidy of $2-3 dollars/hour on hourly wages up to a cap, for example. this will empower job market demand, and in turn labor market demand, which would allow policy-level austerity to entitlements and a transition of the largess to productivity support rather than subsistence...

the antagon system is a complete package and i'd propose it as a policy rather than a stimulus. financing would come by way of the increase in job market demand by cutting back on entitlements with a cap there. i'd charge $ for citizenship and visas for those looking to participate in the hot job market (~$5k), then capture the demand by tying the subsidy to legally employed workers. i'd limit the subsidy to hourly workers coercing a better ratio of management to productive employees, while likely stimulating hiring of non-hourly employees, notwithstanding. i would freeze the prevailing wage and minimum wage for over a decade to suppress inflation in labor costs with the aim of pushing the demand into growth rather than into higher labor rates. i would redress union laws to make them more likely to compete with one another for (shorter) contracts, and with the job market at large. their legal protections would have to be corroded pursuant to the theme of getting more people to work rather than creating a worker elite.

this is the best solution i can think of. it walks away from capitalism's dependency on many progressive entitlements, particularly for able-bodied 16-65s, but not without recognizing their value in specific cases, and while maintaining a mechanism to recycle cash through the sweet spot in the economy.