Monday, February 27, 2006

Trade agreements

The World Trade Organization will certainly be opposed to these transferable IMPORT Certificates. I’m told that most trade pacts, (including the WTO) provide for six months notice of resignation. The WTO could regretfully accept USA’s resignation or our trade policy of IMPORT Certificates. Sovereign nations often act in their people’s best interest. I object to USA accepting lesser median wage because it is in China’s best interest.

USA's policy of IMPORT Certificates advantage or disadvantage to any other nation would be dependent upon the nation's trade balance of goods with the USA. Importers of goods into the USA will try and usually succeed to raise their prices due to the expenses of acquiring IMPORT Certificates. Due to the extent that foreign good's prices increase within the USA and USA good's prices decrease abroad, foreign goods suffer some competitive advantage. Foreign purchasers of USA’s manufactured goods will be able to negotiate cheaper prices (due to the seller's profiting from the transaction’s byproduct, (the resale of their acquired IMPORT Certificates).

A world that couldn't prevent the trade and planting of land mines can not readily prevent sale of trucks and washing machines to the USA. If any nations choose to discard their shares of the USA market, other nations will be pleased to pick up the slack.

Nations that refuse to buy from us, (refuse to negotiate cheaper prices for our goods) would deny the opportunity of all, (including their own) entrepeneurs from accquiring IMPORT Certificates. Thus the world, (including themselves) will be to that extent denied the opportunity to sell to us.

All of this is dependent upon the mighty USA domestic market. Each year our trade deficit causes our domestic market to proportionaly diminish as other nations grow greater. It is desirable that we initiate this trade proposal sooner rather than later.


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