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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (51684)	6/24/2009 5:03:55 AM
From: Maurice Winn	3 Recommendations Read Replies (1) \| Respond to of 217617

USA complaining about China charging export taxes on various raw materials is funny. The USA charges import taxes and imposes quotas so New Zealand can't export so much milk to USA. It doesn't really matter because such taxes are primarily a problem for the country imposing the taxes and there's always somebody else to buy milk. If the USA doesn't want it then 1.3 billion people in China certainly do [NZ milk is much better than milk Made in China using melamine]. It was the same with steel exports from New Zealand. The USA government charged tariffs and imposed quotas, but unsurprisingly, for not much less money, China was happy to take the available stock. The USA can become a modern and larger version of North Korea/Albania, but it's not good economics. Forcing New Zealand to join with China is not good strategy in the long run for USA. New Zealand now has a free trade agreement with China. It seems more sensible for the USA to have one - but no agreement is necessary, a unilateral decision to just allow people to buy and sell as they wish is a good idea. If China doesn't want to make money selling things, that's more a problem for China than the buyers. China doesn't have a monopoly on anything. It's a bit like Iran or Saudi Arabia refusing to sell to foreigners - it doesn't matter much to the foreigners but it plays havoc with Iran's and Saudi Arabia's income. Mqurice