My 2021 Trade Policy Wish List

Inu ManakIf I had to choose a word to describe the trade landscape in 2020, a strong candidate would have to bedisruption. The first three quarters of the year witnessed an8.2 percent drop in the volume of world merchandise trade, compared to last year, and it is still unclear if there will be a deeper plunge as the year draws to a close. But this downward trend, while rapidly accelerated by the pandemic, had already begun in 2019 due to increasing global trade tension. In fact, the World Trade Organization (WTO)estimated a 0.1 percent drop in merchandise trade volume in 2019, with the dollar value of world merchandise exports falling by 3 percent, to the tune of $18.89 trillion USD. While it will take time for us to recover, I offer five practical ideas for trade policy in 2021 that can help ease the economic burden on Americans, repair our fraught relationship with our closest trading partners, and revitalize the rules-based trading system.Rein in executive authority on trade policyIn just one term, the Trump administration has been responsible for nearly a quarter of all Section 232 investigations initiated since 1962. This statute has allowed him to levy tariffs in the name of national security —such as on steel and aluminum products fromour allies. The administration has threatened action onautomobile imports as well —as if importing cars is a national security threat. These actions have been overtly protectionist, encouragedcronyism through a lack of transparency, a...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs