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Thursday, January 26, 2012

Greg Mankiw, free trader

He comments on Obama's State of the Union speech:

I was disappointed, and even a bit surprised, that the President adopted the xenophobic approach to outsourcing and international trade. Usually, on issues of international trade, the President plays the role of grown-up and leaves it up to Congress to gin up populist ire. That is true of both parties. Recall that President Clinton pushed NAFTA through.

When President Obama bragged that his administration had substantially increased trade cases against China compared with his predecessor, it made me proud to be one of President Bush's advisers...

Is he also proud to be one of Mitt Romney's economic advisers? Because here's what Romney proposes to do about China:

CONFRONTING CHINA
... It is time to end the Obama administration’s acquiescence to the one-way arrangements
the Chinese have come to enjoy... Our first priority must be to put on the table all unilateral actions...

Improve Enforcement at the Border
... As president, Mitt Romney will allocate the necessary resources to investigating the actual point of origin for suspect products arriving on our shores and impose harsher penalties on those who would circumvent our laws...

Protect and Pursue Legal Rights
... The Office of the United States Trade Representative (USTR) in a Romney administration will be tasked with pursuing all significant claims of unfair trade practices. It will also take a far
more active role in encouraging private firms that have been victimized to raise
claims both in U.S. courts and at the WTO...

Impose Targeted Tariffs or Economic Sanctions
... if the United States identifies a Chinese firm or industry that is relying on unfair practices or misappropriated American technology for its competitive advantage, we should be in a position to impose punitive measures in response...

Designate China a Currency Manipulator and Impose Countervailing Duties
... If China fails to move quickly to bring its currency to fair value, the Department of the Treasury in a Romney administration will designate China a currency manipulator and the Department of Commerce will impose countervailing duties...

Insist on Reciprocal Government Procurement
... Until China joins and abides by the GPA [Government Procurement Agreement], a Romney administration will respond in kind by ending U.S. government procurement of Chinese goods and services.

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