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OPINION * USA - Triggering a trade war
As if America’s hands were not full already — from Iran to Afghanistan to North Korea - Washington have increased tensions with our next-door neighbors
Dickinson,North Dakota,USA -The Dickinson Press, by Deroy Murdock -June 13 2009: -- Washington have increased tensions with Canada and Mexico, America’s top two export markets, are embroiled in trade feuds with the U.S., both triggered by American protectionism... A $787 billion stimulus package law requires American-made construction materials in federally funded public-works projects. This “Buy American” provision would keep U.S. roads, bridges, and tunnels free of Canadian iron, steel, and other components... Ironically, such limitations will impoverish American companies that supply parts for this Canadian firm’s products. Halton Hills responded to February’s regulations with its own don’t-buy-American rules for government purchases... Expanding this local boycott, the Federation of Canadian Municipalities voted June 6 to back localities that refuse to buy from nations that block Canadian goods and services — namely America... The scene is equally grim south of the border... Removing goods from one country’s trucks and reloading them onto the other nation’s vehicles for onward travel has boosted transit costs anew. These eventually increase price tags... Mexico correctly argues that the North American Free Trade Agreement, opened U.S. roads to Mexican trucks in 1995. Exasperated by Washington’s 14 years of foot dragging, including 2002’s imposition of 22 safety regulations on Mexican (but not Canadian) trucks, Mexico slapped tariffs on 90 American exports worth $2.4 billion, including grapes and toilet paper. This reportedly killed 40,000 American jobs. Mexico’s backlash against U.S. protectionism interrupted its unilateral reduction of average industrial tariffs from 10.4 percent in 2008 to 4.2 percent in 2013... Even worse, June 1 brought word that Canacar — an association of 4,500 Mexican trucking companies — filed a grievance seeking $6 billion in damages from Washington, due to the pilot program’s termination and the resulting brick wall that arose between big rigs at the border... Beyond anti-Mexican bias, the bigger issue here is that, since 1990, according to OpenSecrets.org, the truckers’ union has donated $26.9 million to federal candidates, 93 percent to Democrats... The Teamsters simply purchased protection from its Mexican competitors from the best parliament and president money can buy. If this hikes costs for U.S. consumers, shrinks markets for American exporters, and creates new pitfalls in U.S.-Mexican relations, who cares? No matter what, Washington’s whores put out... As global leader and decent hemispheric neighbor — especially during these economic doldrums — America immediately should rejoin Canada and Mexico on the road to free trade... (Photo from tinka.net: US Customs 2 hours)
Labels: mexicans' trucks debate
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