Tuesday, March 17, 2009

Violating NAFTA is not a win move

The same goes for World Trade Organization rules: If one intends to for all intents and purposes break a trade treaty, then formally renounce it and take the consequences.

Fooling around with trivial reinterpretations of conditions and sub-clauses is just inviting all the troubles of a formal break and engendering bad feelings of ill-treatment and unfairness in the process. Reprisals become politically necessary.

Besides the fact that the supposed reasons for the Obama administration's baiting this response are not provable, it is singularly unwise to turn protectionist in a time of economic recession. Cf. Smoot-Hawley Tariff Act.

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