IB Economics B

THE passage this month of free trade agreements may be a victory not only for President Obama, but also for workers in Colombia, Panama and South Korea. Although the anticipated economic consequences of these agreements are small, these pacts also offer a mechanism for improving workers' rights in partner countries.

The article is an example of how the trade disputes between China and the U.S. results in China finding new ways of getting around those trade barriers by using the free trade agreement between Columbia and the U.S: "With around 35 to 40% of the value of a product added in Colombia, it may be considered Colombian and enter the U.S. tax free"

Russia cut down its tariffs for transportation exceeding 1100 km by half to lower the cost of hauling grain to its farmers in the country's interior to sell their crops.

Once Russia gets into the WTO it will reduce their quotas in pork, chicken and turkey imports. This means that competition will raise in russia and more efficient companies will supply the demand

A pioneering project to provide 22,000 tenants of social housing schemes with solar panels generating free electricity is in jeopardy.

Mexico has suspended the last of the retaliatory tariffs it had imposed more than two years ago on an array of U.S. products such as apples, certain pork products, and personal care goods. The tariffs were imposed as a result of a cross-border trucking dispute between our two countries.

This article talks about how China is complaining for the protectionist measures being taken by the US government about the solar panels trade between those countries, by imposing a tariff on the imports of solar panels to the USA.

BRazilian Beef giant JBS has been allowed massive growth because of low tariffs in and out of BRazil to countries such as Belgium and the Netherlands. Yet, its Fresh Beef has yet to see the outside of Brazil because of many developed nations high health standards. Maybe if JBS can overcome these standards its growth will continue.

The article discusses whether there should be a change in tariff regarding the US flower import. As it is the tariff on Colombian flower imports is 8% but the US government is considering tariff free trade with Bogota, which would be less fortunate for the Colombian flower suppliers.

This article discusses a tariff that the Bush administration in the US imposed on Roquefort cheese in retaliation to the ban on hormone-fed beef. The tariff is 300% which does not ban it however it puts such an increased cost on it that it practically prevents farmers in Roquefort from exporting it to the US.

The U.S. accuses China of dumping solar panels into the United States on very low cost due to government subsidies. Therefore the seek for tariffs of more than 100% of the whole sale price of the solar panels that come from China.

This articles describes the strained relationship between the United States and Mexico because of their respective protectionist policies. There is talk of both countries decreasing or completely removing these policies to allow for better trade within each country. This would decrease domestic trade and increase exportation between countries. Unemployment would decrease due to the increased trade between countries.

There is a risk of a double-dip recession because of the chronic lack of aggregate demand and the failure of the austerity packages provided by the European countries.

This article talks mainly about all the economical problems, especially deficits, between European countries and who is to blame for it. And what should we do? Well one statement was: "it will be only a matter of time before one or more countries resort to protectionism. That could, as in the 1930s, lead to a disastrous collapse in activity around the world," He definitely prefers free trade and thinks it is important to focus on a collaborative strategy, so countries should help each other out in these hard economic times instead of work against each other.

This article talks about how the self-developed protectionism (with a combination of tariffs and legislation in favor of domestic supply) of the brazilian economy is threatening its economy.

"According to the National Carmakers' Association, poor infrastructure and pricey credit and labour mean that making cars is 60% more expensive in Brazil than in China. Local manufacturers have long relied on high tariffs." I understand why Brazil wants to protect their car industry, however shouldn't it be time to look at why there is such high foreign competition, maybe if they would use the revenue the government earns from the tariffs, they could implement training programs or educational programs to increase workers productivity and therefore in the long run decrease the prices consumers have to pay.

After the tsunami in Japan, it destroyed a place that focussed on fishing the Pacific Saury, therefore to ease supply shortfalls they set an import quota on this kind of fish.The quota amounts almost triple the size of actual imports last year.

This article about UNFAO agrees with banning the subsidies for agriculture on the rich countries, due to the effects on trade. Subsidies is an example of protectionism.

The World Trade Organization's ruling this month against China's restrictions on the export of raw materials is a welcome decision that we hope will temper China's mercantilistic strategy, in which every policy decision is designed to favor Chinese exporters.

This article is another one that describes the reasons for the controversial China currency bill that many US senators are trying to pass. While this bill has the right idea that the US needs to reduce the many imports from China, the reason being that China is undervaluing the yuan may just be an excuse.

"China on Sunday urged Washington to stop pressuring Beijing as the US Senate prepares to vote on a controversial bill aimed at punishing the Asian nation for alleged currency manipulation." The U.S. government is very unhappy with China's dealings with their currency and policies regarding said fiasco. We are en route to passing a very controversial bill to reprimand China for its backhanded actions.

This article discusses an example of protectionism where a country (the US) might be just giving an unfair excuse in order to prevent imports

This is a NYT editorial article written in June addressing the issue of a looming trend of protectionism. The big trading nations' patience with the open market is wearing thin with the sluggish economic recovery. However, it is crucial that the world stays committed to the game with a sense of common purpose to survive the economic crisis. Protectionism brings disruptions of the international supply chains and reduce economic activity.