A Humane Trade Reform (Washington Post)
Washington Post op-ed columnist David Gerson cites CGD senior fellow Kim Elliott on U.S. trade reform.
From the article:
"One example: According to the Center for Global Development, Cambodia and Bangladesh pay about the same total tariffs to America as do France and Britain -- even though those European countries export about 15 times more to the United States. And in 2006, America collected about $850 million in tariffs from Cambodia and Bangladesh, mainly on imported apparel -- which is about seven times more than we provided in foreign assistance to those impoverished countries.
How to change the system? Kimberly Ann Elliott, a senior fellow at the center, recommends that Congress provide 100 percent duty-free, quota-free access to American markets for 70 of the most vulnerable countries on Earth -- ending the discrimination against products produced by the world's poor.
There are good humanitarian reasons for this reform, which would help nations suffering from a global recession they did nothing to cause. There are national security justifications: America has a direct interest in promoting economic growth and stability in parts of the world otherwise prone to terrorism, criminal gangs and epidemic diseases.
And there is a domestic economic argument. The very products produced by the poor abroad -- clothing, shoes, food -- are necessities for the poor at home. Our current tariff system is a regressive tax on these goods.
The cost of this reform to American manufacturers would be minimal -- even under Elliott's proposal, less than 2 percent of American imports would come from the countries granted duty-free, quota-free access. But the effect in those nations could be large. Even if international trade is no longer cause for poetry, it is cause for hope."
