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- Path: sparky!uunet!usc!zaphod.mps.ohio-state.edu!saimiri.primate.wisc.edu!ames!sgi!fido!solntze!livesey
- From: livesey@solntze.wpd.sgi.com (Jon Livesey)
- Newsgroups: sci.econ
- Subject: Re: Trade War?
- Date: 8 Nov 1992 04:24:34 GMT
- Organization: Silicon Graphics, Inc. Mountain View, CA
- Lines: 40
- Message-ID: <1di4q2INN7jo@fido.asd.sgi.com>
- References: <6NOV92.03424517@skyfox.usask.ca> <1992Nov6.164840.1526@bnr.ca> <BxB4ME.9BC@apollo.hp.com>
- NNTP-Posting-Host: solntze.wpd.sgi.com
-
-
- In article <BxB4ME.9BC@apollo.hp.com>, nelson_p@apollo.hp.com writes:
- >
- > 1. The entire world economy is very shaky just now; the last
- > thing it needs is a trade war. We should all be trying
- > to INCREASE the volume of world trade.
-
- Quite right.
-
- >
- >
- > 2. France, et al, are democracies. Their voters have made it
- > clear that they WANT some of their tax money to be used for
- > agricultural subsidies. What the US is, in effect, saying
- > to the EC officials is that they should ignore the wishes of
- > their own voters and instead follow OUR dictates.
-
- Actually, although France, et al are democracies, the et al
- part of the EC don't all want this kind of subsidy. In
- fact, there's quite a fuss in Europe over Delors appearing
- to speak for France when he ought to be speaking for the EC
- as a whole.
-
- In one minor sense, this incipient trade war might have a
- good effect if it means that the other EC countries end up
- taking a stand against French agricultural interests. I
- think that the US has shown an uncharacteristic degree of
- subtlety in aiming its retaliation at French and German
- agriculture, rather than at the other EC countries. The
- implied threat that the next step in retaliation *could*
- affect other EC countries, may impell them to action.
-
- I doubt, however, if that will result in the US getting
- some of its - frankly absurd - demands met. The request
- for post-facto 'compensation' in particular, is meeting
- with some hilarity in the European Press.
-
- I think that the rest of your points are very well taken.
-
- jon.
-