And that is just what Mexico did when Mexican officials announced their government will raise tariffs on 90 U.S. products, hitting $2.4 billion in American goods exported to our Southern neighbor. The decision by the Mexican government is in retaliation to recent legislation coming out of Congress and signed by President Obama to close the border to Mexican trucks, a clear violation of our NAFTA obligations.

 

Was this the first anti-free trade policy to come out of the Obama Administration or the Democratic-controlled Congress?  Anyone?  Yes?  No?  Anyone?  No it was not. 

 

The stimulus bill included the protectionist “Buy American” provision, forcing manufacturers to give preferential treatment to domestic producers of iron, steel and other manufactured goods in building contracts and other spending, forcing taxpayers to pay more money for the same goods that could be purchased more cheaply from foreign manufacturers.  As a result, we will almost certainly see the same retaliation from our trading partners in Europe as we just saw from Mexico. Moreover, President Obama has signaled his administration would make it tougher to pass existing agreements such as the Korea, Colombia, and Panama FTAs.

 

The US has been down this protectionist road before. The Smoot-Hawley Tariff Act of 1930 was also introduced as a means to protect American workers and businesses and reduce imports during a global recession. What followed?   Anyone?  Anyone?  The Great Depression.

Any time we begin to fool around with trade policies as to protect ourselves we will scare off out customers. If at any time we can't compete in a world market we have gotten too fat and cocky for our own good. If we survive in the world market we will have to compete, or figure out how to do it. Sincerely, LEW
>> LEWIS A. COOK Friday, March 20, 2009 1:42 PM Report Comment

You miss the point. Obama is doing this deliberately, with the intent of causing the collapse of the American political structure, civil unrest, imposition of martial law with consequent suspension of civil liberties. Meet Obama The Great, President-for-Life. This is easy to demonstrate, but not within the 500-character limit imposed by the site.
>> barry e lerner Friday, March 20, 2009 11:28 PM Report Comment