China-tire restrictions open door for other trade protections

President Obama has decided to put trade restrictions on tire imports from China. In doing so, this has also started the proposal for more trade restrictions on the textile industry. Apparently this has been in the works for a while but President Obama has arranged to put it into effect. United States textile firms have been complaining for years that the Chinese are “dumping” into the United States market because they sell their product for less than the actual costing price.

US-China trade relations and penalties

I found an article from the New York Times website entitled “China: Trade Penalties Will Hurt US Relations” which discusses recent trade penalties that the United States imposed on Chinese tire imports. Barack Obama decided on a 35 percent tariff for one year, 30 percent the second year, and then 25 percent the third year. This is on top of the current four percent tariff on all tire imports.

“China: Trade Penalties Will Hurt U.S. Relations”

The article I read, titled “China: Trade Penalties Will Hurt U.S. Relations” was in the New York Times on September 12, 2009. The main topic of the article was about President Obama establishing a new trade tax that cut down the import of tires from China to the U.S. The United Steelworkers of America believes that the importation of so many Chinese tires has caused the loss of thousands of American’s jobs. However, now that Obama implemented this trade tariff the Chinese say that the penalty will be hurt relations with the U.S. While the American’s think that this part of the stimulus plan is making an even playing field for global trade, the Chinese think that it is protectionist of the American economy and that it goes against global trade laws.

Ecuador Facing Economic Collapse

The government of Ecuador has recently imposed the most severe and protectionist import restrictions in the entire world. For citizens of the country as of January 22nd, 2009, “buying domestic is no longer really a matter of choice”. These restrictions are being imposed on 627 types of goods in the country. This drastic action is a result of the plunging petroleum prices around the world, which has greatly hurt this country, which relies on oil sales for 40% of its national budget.

Cultural values issues in Europe

French President Nicolas Sarkozy speaks on issues in Europe and that cultural values should not be overlooked in the crisis of the economy and the race to success. Sarkozy made a point that capitalism be pushed far down the political hierarchy and that the EU should be focusing more on cultural and spiritual issues that they have been leaving behind; since all of the focus lately has been on the race economic success.

WTO urges G20 to uphold pledge to fight protectionism

“Despite the G20’s decision in November to refrain from raising new trade barriers, there have been several moves suggesting creeping protectionism is under way.” Yoko Nishikawa of Reuters speaks about the WTO’s director-general Pascal Lamy and his thoughts on the G20. After the meeting last November and the announced commitment made to reject protectionism, Pascal Lamy still thinks countries are trying to push the limits and head towards protectionism starting with minor actions.

Trading Conflict between China and India

This article is about the recent trading conflicts between China and India. India does not want to allow the importing of plastic toys from China anymore. They believe that they do not need this import anymore and it is further hurting their economy to keep importing from China.

The toy trade war between India and China

The article I read was called, “India Launches a Toy Trade War with China,” by Madhur Singh from time.com. The article states that India decided to restrict imports on Chinese toys, in order to help their economy.

Brazil may challenge “Buy American” at WTO

In my article it talks about how Brazil is considering challenging the legality of the newly passed “Buy American” clause at the WTO meeting in London next month. Brazil will speak about global protectionism. Brazil is challenging the clause because they feel that the United States is being counterproductive to global trade.

US President Barak Obama has signed his hard fought economic stimulus plan

BBC NEWS: Obama signs a $787 billion stimulus plan.
US President Barak Obama has signed his hard fought economic stimulus plan in Denver after congress approved the $787 billion package last week.