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Bilifuduo (98.39)

Want To Jump-Start the Economy?

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June 18, 2012 – Comments (1)

Pursue a a free trade agreement, says Bloomberg. A free trade agreement between the U.S. and Europe would significantly increase the largest economic relationship in the world, one which accounts for nearly one-third of all trade. Moreover, this free trade agreement will sidestep the argument brewing over austerity vs. stimulus. 

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#1) On June 19, 2012 at 2:14 PM, leohaas (30.99) wrote:

Interesting, but it won't happen.

First of all, Europe is a very diverse continent when it comes to just about everything, including trade. Cameron and Merkel may agree in large lines, but the French will not. And neither will some of the smaller European countries.

But let us assume for a moment that Germany and say, Greece, can agree on one line when it comes to free trade with the US, how do you propose we resolve the obstacles the Bloomberg article lists as "pesky" (and all other issues the article fails to mention):

Are we going to stop genetically modifying our foods? I don't think so. Or are the Europeans going to allow genetically modified foods in their food supply? Nah.

Use of growth hormones in chickens, cattle, pigs? Allowed or not?

Horse meat? Yes or no?

Agricultural subsidies? Do we both abolish them? Or do we agree to limit them to a certain amount? And wouldn't we need to agree on what products can be subsidized, and what products not?

What counts as subsidy to Boeing or Airbus? We sincerely disagree on that one...

Is refunding the VAT for exports a subsidy? Do you believe the Europeans would be willing to stop this refund? Or do you believe we in the US will create a VAT (and refund it for our exports) to level the playing field? If so, who is going to convince Congress that this is a good idea?

Finally: isn't any form of stimulus a subsidy? What country would give up the ability to use stimulus for a free trade agreement?

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