Retaliation within global trade.

Discussion in 'Economy' started by Supposn, May 1, 2018.

  1. Supposn
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    Supposn VIP Member

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    Retaliation within global trade:

    (I'm among the proponents for USA adopting the unilateral Wikipedia described “Import Certificates” trade policy).

    USA should not seek to harm other nations, but we should not refrain from protecting ourselves because nations exporting to us will consider our efforts to be contrary to their best interests. If USA enacts an Import Certificate policy, it is not unreasonable to expect our being targeted by some international trade retaliations.

    But USA's chronic annual trade deficits are detrimental to our GDP and drag upon our numbers of jobs.

    In excess of a half-century, our trade deficits of goods have consistently been net detrimental to our domestic production and numbers of jobs. If we continue seeking a policy of pure free trade, our trade policy will continue to be increasingly of greater future detriment to our nations' net domestic volumes of production and numbers of jobs.
    USA enacting Wikipedia's version of Import Certificate policy would be to our net economic and social improvement and would continue to be increasingly so in the years following its enactment.


    Respectfully, Supposn
     
  2. Supposn
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    I do expect retaliation to a newly enacted USA Import Certificate trade policy.

    Nation's fully or marginally uneconomically refraining from purchasing USA products would to some extent be effectively somewhat reducing USA's exports. To the extent of those nations' behavior being less than to their “best buy”, those individual nation's behaviors will be of lesser benefit to them.

    The consequence of USA's lesser exported goods are:
    Lesser aggregate certificates values circulating in global certificate markets.
    Increasing global certificate markets' price-rates.
    Increasing price-rates paid by importers of goods entering the USA.
    Increasing prices to USA purchasers and users of imported goods.
    Reduced imports of goods into the USA; (i.e. reduced aggregate foreign sales of goods to USA purchasers).


    Due to increases of global certificate markets' price rates, USA goods that were previously marginally to expensive for global sales are transformed to be globally price competitive. Exporters of USA goods could reduce their good's prices and recover the revenue from the increased values of the Certificates they acquire; (Increasing Import Certificates price-rate is an indirect but effective subsidy of USA exported goods).

    Due to increases of global certificate markets' price rates, there's increased inducement for enterprises to increase USA production of goods we now import, or for other substitute goods or service products.

    Respectfully, Supposn
     
  3. Supposn
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    Even when USA seeks a pure free trade policy, our nation encounters incidences of retaliation against our exports. USA should not bully smaller nations.

    Bullying smaller economies would be of little net gains relative to the size of our own economic scale, and wouldn't gain us the reputation as a great populist democratic republic that has some concern for both our own and other populations. A bad rep is similar to a poor credit report; it can cost us.

    Attempting to bully larger individual or pacts of nations could consequentially be both economically and politically to our net detriment.

    If USA enacts an Import Certificate policy, I believe we can well afford foreign nations considering our federal price-rate paid by exporters of USA goods as logically equivalent to a tariff rate, (because importers must surrender such certificates in order to bring their goods into the USA).

    Note by law, U.S. federal price rates are monitored and annually updated to only defray direct government expenses due to the Import Certificate policy.

    As a general matter of policy, USA should then be tolerant of any tariffs or other charges upon our exports, that do not exceed that rate. Such tariffs or charges upon our exports will effectively reduce and probably eliminate any price reductions for USA goods exported to those particular nations. Their government ate the lunches of their nation's purchasers of USA exports. USA should determine our own domestic policies and the conditions upon which goods cross our borders is domestic policy. We should not unreasonably object when other nations behave as we do.

    When individual or pacts of foreign nations tariffs and other charges exceed our federal certificates' price rate, we should then consider enacting our contra-tariff policy against them. They're stepping on our toes.

    Respectfully, Supposn
     

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