{"id":680,"date":"2017-02-14T22:14:16","date_gmt":"2017-02-14T22:14:16","guid":{"rendered":"http:\/\/wordpress.fau.edu\/lifelongexchange\/?p=680"},"modified":"2017-02-14T22:14:16","modified_gmt":"2017-02-14T22:14:16","slug":"president-trumps-retreat-from-trade","status":"publish","type":"post","link":"https:\/\/wordpress.fau.edu\/lifelongexchange\/2017\/02\/14\/president-trumps-retreat-from-trade\/","title":{"rendered":"President Trump\u2019s Retreat from Trade"},"content":{"rendered":"
\"schug\"<\/a>

By Mark Schug, Ph.D.<\/p><\/div>\n

President Trump fulfilled a campaign promise by signing an executive order formally withdrawing from the Trans-Pacific Partnership (TPP).\u00a0 The pact was already dead-on-arrival given the fact that both Mr. Trump and Mrs. Clinton had campaigned against it. A recent poll reported in the Wall Street Journal showed that voters of both parties \u2013 especially Republicans \u2013 are less likely to see trade agreements as favorable to the United States.<\/p>\n

The TPP certainly had its flaws including many carve-outs to placate special interests in several of the 12 nations involved.\u00a0 Nonetheless, many economists supported it.<\/p>\n

Formal withdrawal from the TPP marks a radical change in direction for the United States.\u00a0 It has been nearly 90 years since the Smoot-Hawley Tariff was passed.\u00a0 The argument then as now was that American jobs were being lost due to international competition.\u00a0 Smoot-Hawley increased tariff rates from 20% to 30% on agricultural products.\u00a0 Tariffs were raised on 887 items.\u00a0 Europe and Canada quickly retaliated wiping out many farmers in the Western United States and bankrupting Western banks further weakening a sinking economy.\u00a0 It is almost certain that the Smoot-Hawley Tariff all by itself would have induced a recession.\u00a0 It certainly contributed to making the Great Depression longer and more painful.<\/p>\n

Since the end of World War II, the United States has championed freer trade and open markets.\u00a0The United States led the creation in 1947 of the General Agreement of Trade and Tariffs (GATT) that was signed by 23 countries.\u00a0 In 1995, The United States helped lead the establishment of GATT\u2019s successor \u2013 the World Trade Organization (WTO) which today has over 160 member nations.<\/p>\n

But, it is now 2017.\u00a0 People have many serious concerns about trade that need to be addressed.\u00a0 These concerns never received the attention they deserved during the campaigns of either candidate.<\/p>\n