The U.S. alternative energy sector has been under attack from cheap foreign competition for years. In a rare move, the U.S. government has decided to do something about this problem. The U.S. Commerce Department has sided with U.S. solar companies and will place tariffs of 30 percent or more on illegally-dumped solar panels from China. With the solar industry just developing as a legitimate industry, this move could be invaluable in helping the U.S. compete in the long term.
The United States is in open competition with the very countries from whom we buy our goods and finance our government. These countries supply our consumption while simultaneously competing fiercely against our companies in international markets. India, Japan, China and the European Union consistently rail against “protectionism” in the U.S., because they do not want their unfettered access to our market tampered with.
The World Trade Organization (WTO) was allegedly intended to benefit all of its members by increasing economic activity, but the reality has been quite different. The WTO has been a boon to multinational corporations, but it has worked against the best interest of average citizens, particularly in the United States. According to Public Citizen, the WTO has ruled against the U.S. in 100 percent of the cases where a complaint was brought against a U.S. public interest law.
With the KORUS FTA now officially enacted, it is only a matter of time before its ill effects start to accrue. Our domestic auto industry is one area that could see adverse affects from this agreement. While KORUS is supposedly a “free trade” agreement, American automakers will continue to get limited access to the small South Korean market, while South Korean manufacturers enjoy open access to our large auto market.
NAFTA cannot be called anything but an economic disaster for the United States, but that is not to say that profits have not been made. Multinational corporations have seen their profits grow as a result of NAFTA, but those profits have not created jobs in the United States. When the public is sold on free trade agreements, they are told that free trade agreements create economic activity through increased trade. Unfortunately for American workers, that economic activity usually means a few rich individuals are profiting at their expense.
Trade Reform The Economic Collapse Blog
