October 31st, 2011
What do South Korea, Colombia, and Panama have in common? They all have newly approved trade agreements with the United States. At least those Republicans and Democrats can agree on something. That may be the only reason that they passed these bills, to show the voters that they can behave. Will economic conditions improve further damaged with these new trade pacts.
From here in beautiful Sonoma County, economic conditions can hardly seem worse. Perhaps it is better to make a wrong move, if that’s what these trade pacts are, than to continue the do nothing approach that appears to be the main bi-partisan activity. The resultant easing of the many tariffs on US exports to the 3 nations from the agreements passing would at first glance appear to favor the United States. The thought of liberation from the wine tariff imposed by South Korea has wine growers positively bubbly.
Labor groups aren’t so thrilled about it. Public Citizens Global Trade Watch believes that free trade agreements destroy American jobs by undervaluing labor in favor of the non-livable wages imposed on workers in places like Columbia and Panama. Therefore, it just depends upon whom one asks. It will certainly stimulate investment ideas by the reduction in the border impediments represented by the so-called free trade agreements. Will that translate into truly improved conditions for those millions of unemployed laborers who are out in the real world and that must live with the consequences of alleged free trade?
Those investment ideas will be flowing like a fine wine as the Wine Institute shows off what good vintners are famous for, their timing. They could not have been timed their annual trade crusade to Korea better, coinciding as it does with the free trade pact’s approval in Washington. Let us hope that everyone else involved in this trio of trade agreements prospers as well. If trade is truly freed or constrained in the four countries involved remains to be seen and the world will be watching in earnest to see if economic conditions will improve as a result.
Photo © zimbio
This entry was posted on Monday, October 31st, 2011 at 3:02 pm and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.