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96 votes

What is Canada's case for applying tariffs on US dairy?

It seems that Canada and the US use two different systems to protect their respective domestic dairy producers. In Canada "Under a system called supply management, the Canadian government controls ...
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  • 10.1k
92 votes
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How are steel imports supposed to threaten US national security?

By allowing the import of steel, you encourage the dissolution through insolvency of native steel firms (because they often struggle to compete economically with imported steel). This means that you ...
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  • 5,753
86 votes

Why are the Brexit trade talks held up by the divorce talks?

This might be described as an "eat your vegetables" strategy by the EU27. The three preliminary issues are not palatable to the UK government: It is reluctant to discuss the divorce bill. Paying any ...
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61 votes
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Can the president of the United States be guilty of insider trading?

Is there potential for the President of the United States to commit insider trading? Certainly. The President has access to all kinds of material information that is non-public, either because it’s ...
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  • 25.7k
53 votes
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Why did China target Australia for economic sanctions?

It's because they previously saw Australia as a weak link in the Western democratic alliance, and are not happy that they are now firmly siding with the U.S. and other Five Eyes. Australia has long ...
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  • 1,976
46 votes

Why do EU sanctions against Russia stop short of a total trade ban?

I think there are at least two obvious reasons, The EU profits from trade with Russia. Russia buys a lot of stuff, sells a lot of stuff the EU needs, and also uses the European market for its ...
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  • 5,979
44 votes
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No deal Brexit : How is it going to help UK to create new trade deals?

More than "an opportunity", it should read "will be forced to", as it will begin with no trade deals with other countries and will default to the WTO rules. For the answerable part: A country within ...
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  • 27.6k
42 votes
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Does stopping metal imports alone cover the trade deficit of the USA?

According to the US census bureau, the trade deficit of the United States in 2016 was $504.8 Billion. The recent US import tariff increase is on both steel and aluminum. In 2016, the United States ...
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  • 68k
42 votes

What reasons do pro-trade politicians use to justify retaliatory tariffs?

The point of retaliatory tariffs is to act as a disincentive to countries thinking of imposing tariffs. WTO rules, being agreements between sovereign nations, can't really be enforced. Instead they ...
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  • 7,383
42 votes

What international relations is Australia missing out on by being a constitutional monarchy?

Sorry, I think you are out of luck here. NATO and EU are open to (constitutional) monarchies, for example Belgium is a member of both. The EU is restricted to democracies, and while there are no ...
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  • 93.9k
40 votes
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Post-Brexit UK-EU trading relationship: Why (not) Canada?

There's not really a lot to elaborate on, the UK's location is the key reason why the EU is not willing to grant a Canada style deal. Elaborated here, as a low number of tariffs, and high quotas. ...
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  • 21.4k
39 votes
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ELI5: Why is Russia's requirement for oil to be paid in Roubles abnormal?

Because the contracts stipulated payments in other currencies (euros, dollars), not roubles. i.e. all your other arguments are superseded by the fact that these were not the contractual commitments ...
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32 votes
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What were Trump's specific accusations justifying imposing tariffs against China?

Peter Navarro, the White House National Trade Council and Office of Trade and Manufacturing Policy Director, put out a report called "How China’s Economic Aggression Threatens the Technologies and ...
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  • 444
31 votes

What is Canada's case for applying tariffs on US dairy?

The simplest explanation is that the two systems are not compatible so Canada protects their side via a large tariff wall. Canada uses Supply Management boards to control the price of dairy (among ...
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  • 411
31 votes
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What reasons do pro-trade politicians use to justify retaliatory tariffs?

The tariffs that the EU and China have imposed on the US are politically aimed at (swing) states held by (key) Republican politicians. In this way, the EU hopes to influence the US domestic political ...
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  • 44.8k
31 votes

Does the EU require preferential trade within itself?

I think you may be confusing this a bit. I am not aware of a "members trade first" requirement, and in any case, private entities are free to trade with whomever they wish. There is however a ...
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  • 409
30 votes
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Does the European Union buy soybeans?

According to Reuters, it's not the EU but companies: “It is not the European Commission that buys, but the industry, and traders who look for goods where they are the least expensive for their ...
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  • 32.5k
29 votes
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Why would it be considered advantageous to negotiate ones own trade treaties?

The problem is that the EU has to satisfy demands from all member states. In particular, the UK isn't as protective as a few other member states. The EU may have been setting unreasonable tariffs to ...
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  • 5,129
29 votes
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Why are the Brexit trade talks held up by the divorce talks?

Almost the first set of talks that were held about Brexit were about the order in which things were happening. The UK wanted to do things in parallel. The EU said no, we need to settle things like the ...
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  • 1,406
25 votes

Why are the Brexit trade talks held up by the divorce talks?

The process of leaving the EU is governed by Aritcle 50 of the Lisbon Treaty. This article requires the EU to negotiate the terms of the withdrawal on the basis of the Treaty on the Functioning of the ...
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  • 17.2k
25 votes
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What is preventing the UK and the EU from progressing in the talks on post-Brexit trade?

During the Brexit negotiations, fundamentally unresolvable differences were postponed. There will be a point when they will have to come to the table. Look at the terms regulatory alignment and level ...
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  • 84.4k
24 votes

Does the United States tax exports?

The United States taxes global income (as opposed to territorial income as in most countries). So the income of the export is taxed in the US when it is repatriated to the US. Some companies leave ...
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  • 88.2k
23 votes

Does stopping metal imports alone cover the trade deficit of the USA?

The underlying premise of the Trump administration is that globalization is harmful, at least for the US, due to trade deficits. The simplified idea is as follows: Assume that the US imports steel, ...
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  • 3,793
23 votes

What were Trump's specific accusations justifying imposing tariffs against China?

Before we discuss qualitative "fairness", there's a practical reason to single China out even if it's not qualitatively different: scale. US trade deficit is $795B total. Of that, $375B or ...
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  • 89.3k
23 votes
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Why is the Crimean peninsula so important for Russian trade?

Military importance There are several reasons of the importance of Crimea to Russia, the primary of which is the Sevastopol naval base, which is the largest Russian naval base on the Black sea: It is ...
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  • 8,339
18 votes
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Has Britain negotiated with any other countries outside the EU in preparation for the exit?

Yes, negotiations are proceeding with non-EU countries. The BBC reported on the 21st of February that trade deals had been concluded to continue the terms of existing EU deals with Israel (signed 18 ...
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  • 20.6k
18 votes

Why did China target Australia for economic sanctions?

According to a piece on The Conversation, "China used anti-dumping rules against us because what goes around comes around": Australia was among the first wave of countries to adopt anti-...
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  • 13.7k
18 votes
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Which EU countries trade more with China than with the US?

The BBC article you've linked uses figures from Eurostat, but I can't seem to find disaggregated international trade data on their data viewer. Nevertheless, a good substitute is the UN's COMTRADE ...
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  • 82.6k
17 votes
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Why isn't Norway a part of OPEC?

Short answer: Norway is a developed country. Longer answer: OPEC was developed as a way for under-developed economies with oil wealth to fight back against the power of multinational corporations ...
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