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Originally posted by Sidd Finch
Without getting into the costs-v-benefits argument on this, let me ask you -- is "free trade with China" an oxymoron?
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Maybe - I don't know what that really means. It would be nice if it was freer. Of course it is not totally free but no trade relationship is - it is all relative.
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Originally posted by Sidd Finch I am in general a big believer in free trade (and I think the G7 should eliminate farm subsidies to practice what they preach).
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From your mouth to God's ears. The French are the worst on this. They claim to be so concerned about subsuharan aftrica and yet their unyielding support of the EU CAP is the single biggest cause of poverty in that region.
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Originally posted by Sidd Finch But many, though certainly not all, commentators seem to believe that China has artificially suppressed its currency, and this makes the "free" trade a very murky proposition.
Related question -- if you believe that China does artificially suppress its currency, then does the fact that this keeps prices of goods imported from China low make it an acceptable practice -- or even a practice that benefits the US?
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The resources that China expends to keep their currency down is basically a subsidy to the US consumer. I think their country would benefit greatly by letting the currency go (in the long run these types of distortions just hurt everyone), but in the short run the American consumer is getting a kickback from the PRC.
