- It brings into sharp focus the nature and volume of global trade and the highly interconnected world we live in.
- It signifies the emergence of China as a strong global player standing up to America
- Global downturn also means countries, and more importantly politicians are extremely cognizant of local interest, domestic lobbies and voting blocks: especially local workers who are hurting with high job losses (America is experiencing a historic high of nearly 10% joblessness)
- The few headlines on globalization and trade spats, are perhaps the tip of iceberg when it comes to issues and challenges
- Of course, it is not just about tires and Car parts: Indians cheered when their Commerce Minister - Kamal Nath – stood up to WTO trying to protect the rights of marginalized farmers ( fearful that on top of their burdens of a crippling drought and deep debts, they will face an influx of cheap foreign crops from countries like the United States)
- Much closer to my day-job as a Technocrat lies the issue of global restriction on movement of experts and service professionals: the H1-B visa caps or European work-visa restrictions.
Other bloggers on the topic
- Economists React: China Tariff “Disappointing” and Timing “Unfortunate” - WSJ Blog
- A Coming Trade War? Greg Mankiw's Blog
- Trade tensions stir recovery fears: Globe and Mail
- Reflections on US-China Climate Change Working Group - Fairer Globalization
I remember reading the chinese minister saying "China has every right to retaliate"... Did they retaliate?ReplyDelete
And yes, for all its championing of free trade, Uncle Sam had to bow down to worker pressures from within.
For a true globalized world, every sector should be able to take advantage. The advantages of a flat world should permeate across all spectrum of people. Only then will the lobbying by the select few stop.
There is more here than meets the eye!