www.iasinsights.in; www.iasgyaan.com posts Hindu Summary-7th Feb 2018 about USA latest stand on protectionism.
- US President plans to revisit the Trans-Pacific Partnership that he had pulled out of last year.
- Also started renegotiating North American Free Trade Agreement (NAFTA).
- The protectionist campaign is the action that Mr. Trump has initiated on China indirectly.
- There seems to be a realization of the risks to his globally disruptive agenda
- So announced at the recent Davos World Economic Forum that “America first does not mean America alone.
Consequences after USA exit:
- Apart from USA the other 11 nations of that original grouping will adopt in March 2018 the renamed Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
- Not sure whether Canada and Mexico could be arm-twisted to allow a large proportion of U.S. components in the manufacture of cars.
- USA threatened Beijing with 45% punitive tariffs in retaliation against a huge trade surplus.
- Job loss looming in solar industry due to recent slap on safeguard tariffs on imports of solar cells.
What should not be done?
- To alienate allies across the Atlantic would not seem strategic for a President eager to capitalize on Europe’s opposition to Beijing’s perceived unfair trade practices.
How USA doing protectionist measures?
- Launched two separate probes: one into illegal aluminium subsidies and into anti-dumping of Chinese aluminium exports.
- Another probe related to Beijing’s so-called intellectual property theft ordered last April into the effects of steel imports on U.S. national security.
- Launched the probe despite Beijing’s offer to cut excess capacity by 150 million tonnes by 2022.
- In January, the U.S., slapped safeguard tariffs on imports of solar cells and domestic washing machines.