tag:blogger.com,1999:blog-16438495.post113131785565841064..comments2024-01-25T18:53:11.461-06:00Comments on Center for International Finance & Development: FTAA & Bush in South AmericaWebmasterhttp://www.blogger.com/profile/03812565839828757976noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-16438495.post-1131482687438606142005-11-08T14:44:00.000-06:002005-11-08T14:44:00.000-06:00Sen. Charles Schumer and economist Paul Craig Robe...Sen. Charles Schumer and economist Paul Craig Roberts' joint article in the New York Times, "Second Thoughts on Free Trade". In this article, Roberts reiterated his position that "the case for free trade" rests on the assumption that factors of production cannot move between countries (or at least, cannot move as easily as final products can).<BR/><BR/>According to Schumer and Roberts, in the modern world of multinational corporations, reduced shipping costs, and high-speed telecommunications, factors of production are quite mobile indeed. We can no longer be sure that "free trade" will work in the new environment. Rather than David Ricardo's classical law of comparative advantage (which showed that laborers in various countries will specialize in those industries in which they are relatively superior), which Roberts agrees will produce shared gains among all trading nations, in the new global economy we confront the law of absolute advantage: Capital and labor will move to those countries with the lowest costs of production, meaning some nations gain and others lose.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-16438495.post-1131456398166148192005-11-08T07:26:00.000-06:002005-11-08T07:26:00.000-06:00I personally feel that Bush Sucks! Besides that h...I personally feel that Bush Sucks! Besides that he is out for his own financial gain post presidency. He is always trying to get over on the little guy American or Latin American or South American. He always places his priorities first with the countries rich close behind.<BR/><BR/>Thanks Janel for putting this on.<BR/>CaraAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-16438495.post-1131398129875663352005-11-07T15:15:00.000-06:002005-11-07T15:15:00.000-06:00Thank you for your comment jay. Through our blog, ...Thank you for your comment jay. Through our blog, we hope to report recent developments in the areas of international finance and development. We also hope to stimulate discussion among our readers on those issues. I would not want to inhibit that discussion by creating postings that solely express my personal views. <BR/><BR/>However, in response to your comment, I personally do not think that the FTAA will not happen as Washington proposes. There are too many heterogenous economies involved and a strong possibility that the FTAA will have a negative impact on countries with smaller economies. <BR/><BR/>For example, the subsidization of American agriculture allows American goods and services to be sold in Latin American and the Caribbean below production costs and at half its real costs. By eliminating tariffs and other barriers through the FTAA, local producers would not be able to compete in their own markets. <BR/><BR/>Some developing countries are justifiably looking out for the interests of their own citizens and businesses, and recognize that the FTAA could merely be a U.S. initiative to open up a market to its transnational companies. <BR/><BR/>One way to ensure equitable FTAA negotiations is for countries to solidify their regional trade groups first, then enter as a bloc into negotiations about the hemispheric Free trade agreement. The economies in the the regional trade blocs (i.e. Caribbean Single Market and Economy; Southern Common Market (Mercosur)) are more homogeneous. The regional trade blocs would be better able to assert their region's special problems and challenges, and advocate solutions for them.Janelhttps://www.blogger.com/profile/12167731680089179101noreply@blogger.comtag:blogger.com,1999:blog-16438495.post-1131330744570394252005-11-06T20:32:00.000-06:002005-11-06T20:32:00.000-06:00Too bad Chavez will probably be assasinated by the...Too bad Chavez will probably be assasinated by the U.S. There could have been potential for some Latin American unity under his leadership.Anonymousnoreply@blogger.com