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96

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 how much milk dairy farmers produce and how much it sells for" thereby guaranteeing sustained dairy milk farming. In the US, milk dairy farmers are supported by ...


92

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 now rely on imported steel for things like tanks and what have you. During times of conflict, there's now the risk that your enemy will cut your supply chains ...


86

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 money at all to the EU will be unpopular, especially in the wake of false promises by the Leave campaign about money saved by Brexit. It is reluctant to ...


61

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 classified, confidential, or not yet cleared for public consumption. Some examples of material information that the President could have access to before the ...


44

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 the EU cannot sign its own, separated trade deals, because the single market would mean that once the goods are in that country they can travel everywhere in ...


42

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 imported $21.9 billion worth of steel and $12.4 billion worth of aluminum and bauxite (aluminum ore). So even if the tariffs manage to reduce the US steel and ...


42

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 are a set of rules that set out what countries can and should do, and what responses are allowed. Those rules allow that, in the case that an invalid tariff is ...


42

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 explicit requirements on government type for NATO, in practice, all members have been broadly capitalist and democratic. Both organisations have regional ...


40

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. There's more in this article on BBC. Almost all trade agreements include them to some degree, but the EU is demanding particularly strict rules because the UK is ...


33

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 Intellectual Property of the United States and the World". In it there are many specific accusations against Chinese "economic aggression", with evidence cited for ...


31

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 different requirement which might fit the argument you are citing. What the EU requires is that all member states are treated equally in government tenders. So, if a ...


30

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 other things). These boards issue quotas to producers. For instance, a dairy farmer may own a quota of, say 50 kg of milk fat. Thus he could produce milk until ...


30

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 debate in favour of removing the tariffs, while keeping direct economic damage to a minimum. In case of EU tariffs, BBC News reports: Brussels said it ...


29

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 protect some non-UK industry, and in exchange got a worse deal in return. The UK on its own can make a deal that only needs to take into account British industry....


29

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 financial interests,” one European soybean trader said. Reuters also quotes a market reseacher saying that the statement is "largely symbolic", and that ...


28

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 financial commitments first and in the end the UK negotiators agreed to that. They really had no choice though, as negotiations require two parties. The UK ...


25

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 European Union. The EU has decided that it will prioritise the rights of its citizens and the UK's financial obligations, based on the provisions of that ...


24

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 their foreign revenues overseas in order to avoid that taxation. Note that it is the income that is taxed, not the export. Income is taxable no matter the ...


24

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 playing field. The UK wants a Brexit which means Brexit, the right to make their own policies and trade agreements as they see fit. Speech by Johnson The EU ...


23

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, instead of producing it. This means that US Dollars are spent to acquire a resource, where instead American workers could have produced it, thereby creating jobs ...


23

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 47%, is with China (source: Wikipedia) - dwarfing deficit with any other country (more than twice the size of next biggest entity, EU, and more than 5 times the ...


18

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 February) Palestinian Authority (18 February) Switzerland (11 February) The Faroe Islands (1 February) Eastern and Southern Africa (31 January) Chile (30 ...


17

Why some countries are poor and others are rich is one of the fundamental questions in economics, going all the way back to Adam Smith. There is a whole wealth of literature on the subject, but to simplify greatly the three main sources of economic growth are resources, technology, and institutions. Mexico has a reasonably large quantity of of natural ...


17

This PDF has a good list in Table 1.1 of statutes that grant the President wide lattitude in setting Tariffs. Tariffs are not covered under Article I, Section 8 as you quoted, that sentence applies to only internal interstate trade within the boundaries of the United States. The President has much more authority with external trade since that is a form of ...


16

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 mostly from Britain and the U.S. Norway didn't have that problem, and so wasn't really concerned with the same issues of OPEC. Later, OPEC became a way for ...


16

Under Article I, section 10 of the US Constitution, no state can enter into an agreement with a foreign power without the approval of Congress. No state can enter into a treaty with a foreign power period, even with Congressional approval. This is specifically to prevent what you're talking about: the US is a single country and is supposed to act as a single ...


15

Another way to look at it is that it is not "..practical for Britain to carry out trade talks with the European Union in parallel with the divorce talks." This is because the basis for trade with the EU is the rules that govern trade. These include freedom of movement taxes and tariffs border controls As the nature of the separation is not clear, the ...


15

Rather than a formal reason, this may just be indicative of pre-negotiation maneuvering and building up their negotiating bargaining chips. It's already clear the EU won't grant a Norway/Switzerland level of access, at least not unless the UK agrees to the same kind of constraints those 2 operate under. Note that Switzerland is even closer than the UK, so ...


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