Trade war begins

[BlasterBates]

Listening to comments about this on LBC.

[meridian]

What do you think the Customs Union is?

This isn't specifically what the US administration is focussing on, however. It's the abuse of NAFTA, both China and the EU ship components to Mexico and Canada for assembly and then sell the finished goods in the US under the NAFTA agreement. This circumvents trade agreements in place for direct trade. That's the current beef.

Huh.

Not blocking Russia though. Funny, that...

http://amp.nymag.com/daily/intellige...al-giant.html?

“RUSAL has felt the impact of U.S. sanctions because of its entanglement with Oleg Deripaska, but the U.S. government is not targeting the hardworking people who depend on RUSAL and its subsidiaries,”

Hardworking people who depend on EU (including U.K.) companies can go **** themselves, though...

[sasguru]

Listening to comments about this on LBC.

DO share ....

[BlasterBates]

DO share ....

We should follow Trump, shove up trade barriers and get our shipping industry back by building small motor-boats to support the local fishing industry.

[ContractorOnAMotorbike]

It is indeed very interesting, not to mention amusing, how the rise of the cretinocracy in the Anglo-Saxon countries (US and UK) is going to hasten their loss of influence and power.
What is also interesting is how the right now embrace naive socialist ideas like protectionism, simply because they want the votes of the uncompetitive cretinocracy.
If protectionsim worked, North Korea would be the most successful state in the world.

You're using an extreme example to claim that protectionism doesn't work. Here's a less extreme example... Take a look at the motorcycle industry in India. The Indian government permitted collaboration so long as the major shareholder was an indian entity and banned chinese manufacturers outright. The end result was that you now have top japanese companies like Honda, Yamaha etc and top european companies like BMW, KTM and so on working with indian manufacturers like Bajaj and TVS churning out thousands of quality bikes for the local market and motorbikes for export. Protectionism does work if it is done right.

[sasguru]

There is some evidence that protectionism works in the initial stages of a country's development, when keeping out foreign competition may help indigenous industry to take root.
After that period in a country's development though, the evidence is overwhelming that it doesn't work, making everyone poorer.
Tariffs are a tax and eventually the consumer pays.
Look at the US - put tariffs on steel and aluminium - initially there might be some local investment in those industries, but the lack of competition means in the long run costs will go up and quality will go down (competition keeps you on your toes), companies who use these raw products will have to raise their prices, US products will become uncompetitive.
Or say the US puts punitive tariffs on German luxury cars into the US - US cars which are tulipe, but have to be a certain standard purely because they can be compared to German cars,
will become even more tulipe.
The thing is developed economies end up specialising in certain areas because they have cultural inclinations and aptitudes in those areas. Trying to create jobs in low value-added industries which are being mechanised anyway, simply because those are the people who voted for you, is doomed to failure.

[BlasterBates]

You only have to spend 10 minutes listening to LBC to know the UK is going to hell in a hand cart.

Personally I blame tabloid newspapers after years of shoving their tripe down people's throats.

[BlasterBates]

There is some evidence that protectionism works in the initial stages of a country's development, when keeping out foreign competition may help indigenous industry to take root.
After that period in a country's development though, the evidence is overwhelming that it doesn't work, making everyone poorer.
Tariffs are a tax and eventually the consumer pays.
Look at the US - put tariffs on steel and aluminium - initially there might be some local investment in those industries, but the lack of competition means in the long run costs will go up and quality will go down (competition keeps you on your toes), companies who use these raw products will have to raise their prices, US products will become uncompetitive.
Or say the US puts punitive tariffs on German luxury cars into the US - US cars which are tulipe, but have to be a certain standard purely because they can be compared to German cars,
will become even more tulipe.
The thing is developed economies end up specialising in certain areas because they have cultural inclinations and aptitudes in those areas. Trying to create jobs in low value-added industries which are being mechanised anyway, simply because those are the people who voted for you, is doomed to failure.

Believe me you're wasting your breath, the answer is to ring-fence the UK and try and prevent contagion to other countries,

[sasguru]

You're using an extreme example to claim that protectionism doesn't work. Here's a less extreme example... Take a look at the motorcycle industry in India. The Indian government permitted collaboration so long as the major shareholder was an indian entity and banned chinese manufacturers outright. The end result was that you now have top japanese companies like Honda, Yamaha etc and top european companies like BMW, KTM and so on working with indian manufacturers like Bajaj and TVS churning out thousands of quality bikes for the local market and motorbikes for export. Protectionism does work if it is done right.

Indian bikes are not quality bikes.
Compare the build quality of an Indian Enfield, say, with a Honda.
Like I say, protectionism works in the early stages.
Now if India wants quality products it's going to have to learn to comepete with Honda and the like.

[Zigenare]

Indian bikes are not quality bikes.
Compare the build quality of an Indian Enfield, say, with a Honda.
Like I say, protectionism works in the early stages.
Now if India wants quality products it's going to have to learn to comepete with Honda and the like.

The bikes are built for the local market to a price.

Bear in mind that India has its own problems! Namely a looming water shortage when the populous eventually learns to use a toilet and not crap in the street!