Redstate

Posted at 1:34am on Mar. 16, 2008 Forcing The Issue: The Free Trade Pact With Colombia

By Pejman Yousefzadeh

This is a potentially good move by the White House. The Colombians clearly need assistance and buttressing in the wake of recent aggressive measures by FARC, Venezuela and Ecuador. A free trade pact with the Colombians could be just the thing to augment their economic security and could help augment their political security as well.

One hopes that Congress responds favorably--the neo-protectionism of certain members of Congress notwithstanding. At the very Representatives and Senators should be flushed out into the open as either supporting our Colombian ally or seeking to undermine it. There is little--if any--middle ground given the grave nature of the situation in Colombia. That the trade pact will help the American economy should be an added bonus, though Heaven knows that the neo-protectionists don't appear to understand this fact at all.

Posted in Economy | Enhancing Security | Fighting Protectionism | Free Trade — Comments (1)/ Email this page » / Read More »

Posted at 1:32am on Mar. 16, 2008 Endorsing NAFTA

By Pejman Yousefzadeh

This editorial deserves widespread attention--especially given the neo-protectionism that is currently afflicting the discussion of trade policy:

For the past few months, we Canadians have had our ears pressed to the border, listening with great interest as our American friends discuss the North American Free Trade Agreement.

As a partner in the agreement, we have a tremendous stake in how this conversation plays out, of course. But we also have a unique perspective on the agreement. For us, Nafta works. That is because Nafta allows trade to flow more naturally and fluidly across our shared border and has helped turn the Great Lakes region into one of the largest concentrations of economic might in the industrialised world.

The numbers are significant. The eight Great Lakes states plus Ontario account for 30 per cent of North America's employment and output and a healthy 36 per cent of its manufacturing employment. Every day, about $900m worth of goods travels between Ontario and our Great Lakes partners. At the Detroit-Windsor gateway alone - the busiest in the world - $122.8bn worth of goods, 6.5m trucks and 6m cars cross each year. This has helped create an integrated Great Lakes economy where products are made - not on the Canadian side, or the American side, but together as a region.

For example, a part produced in Ohio could find its way into a car assembled in Ontario, which in turn could be shipped to Europe. Resources produced in Ontario can be sold in the US, turned into products and sold again in the Canadian market.

Canada is the largest trading partner for 36 of 50 US states. Pennsylvania exports more to Canada than its next seven markets combined. Cross-border trade supports 221,500 jobs in Michigan alone. The regional trade relationship is complex, dynamic and, ultimately, good for our shared economy.

A 2004 study in the American Economic Review concluded that, while there was short-term job loss in manufacturing in the early days of Nafta, the lost employment was offset by employment gains in other parts of manufacturing. Overall, wages increased, as did productivity. In fact, labour productivity in manufacturing increased by a remarkable 0.93 per cent annually. Overall, Canada and the US increased their trade with each other, forming a more cohesive North American market.

There is a lot more at the link and all of it is worth reading.

Posted in Economy | Fighting Protectionism | Free Trade | NAFTA — Comments (4)/ Email this page » / Read More »