Spanky |
06-16-2005 03:50 PM |
free trade
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Originally posted by Not Bob
Thanks for the substantive response.
I agree with you that labor in general may be using this issue to scuttle a deal because they don't like free trade, but there are pro-free trade Democrats who have a problem with this disparate treatment, and a concern that it will be seen as encouragement to poor islands to not enforce their laws in order to get jobs.
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Yes - but that is not enough reason to kill the bill. Even if they don't enforce their laws we are still better off with the free trade.
Quote:
Originally posted by Not Bob Your above analogy is not quite apt. The comparable issue would be if Alabama allowed BMW to violate its lax wage and hour laws, and California wanted to slap an excise tax on M3s..
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I think this does happen. States go through fierce competition to get company's to open plants in their states. They offer tax breaks, suspension of labor laws etc. What is the difference between repealing the law and ignoring the law. Many states do all sorts of stuff to encourage business in their states yet California never does anything retalitory. We just offer other incentives to get companys to come here. But the answer is not retalitory tariffs or taxes. In addition, California does not reach agreements with Alabama that says if you don't uphold certain labor laws or environmental laws we will retaliate. We may bitch about it but we don't shoot ourself in the head by trying to screw with free trade (plus it is illegal). And I think we are better off because of it. Giving California the ability to retaliate economically if Alabama reduced its labor protections or environmental laws would not make the US better of. Trade wars would start and everyone would get screwed. But for some reason this logic is not applied to the international community.
Quote:
Originally posted by Not Bob But I guess I should read the treaty. As I understand it, it does contain labor and environmental provisions. But it doesn't treat violations of these provisions the same as it treats violations of the commercial provisions. In other words, if Grenada slaps a 50% tax on Budweiser, the US can retaliate, but if they violate their own labor provisions, we can't.
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That is still better than having no treaty at all. Right now we can't retaliate on the commercial stuff either. The treaty might be better with the retaliation clause for labor and the environment, but without it the treat is still better than the current situation.
There a lot of "free trade" Republicans that are against this treaty to. But the textile and sugar industrys are trying to kill it and they have a lot of money to throw around. Like I said, all businesses are for free trade except for the area which they trade in.
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