Send a Tweet
Most Popular Choices
Share on Facebook 6 Share on Twitter Printer Friendly Page More Sharing
OpEdNews Op Eds    H2'ed 4/22/18

Message to NYT Times: Growth in Our Trading Partners Is Good for the United States

By       (Page 1 of 1 pages)     (# of views)   No comments
Author 2529
Message Dean Baker
Become a Fan
  (40 fans)

From Beat The Press


(Image by pixabay.com)   Details   DMCA
- Advertisement -

The NYT ran a piece about a revised trade pact between the European Union and Mexico with the headline, "In a message to Trump, Europe and Mexico announce trade pact." The piece tells readers:

"...it sends a message to Mr. Trump that some of America's closest trading partners are moving ahead with deals of their own -- potentially leaving American exporters on the losing end in foreign markets."

This is not how this treaty would be viewed in standard economics. While some U.S. exporters may lose markets in Mexico's relatively small market, as a result of better treatment for EU exporters, other exporters would gain markets due to expanded growth in both regions. In addition, the U.S. should benefit insofar as increased trade between the EU and Mexico could lead to lower prices for items that we import from these countries.

This is how the same logic by which the United States gained from the formation of the European Common Market and later the EU. By making the region stronger economically, it became a more valuable trading partner. It is striking that the NYT apparently is so unfamiliar with basic economics.

- Advertisement -

It is also worth pointing out that the paper wrongly referred to the pact as a "free trade" agreement. Politicians like to call their deals "free trade" agreements because intellectual-types then think they have to support them. In reality, this pact includes the imposition of a number of regulatory measures that have nothing directly to do with free trade and enhanced patent, copyright, and related protections, which are explicitly protectionist.

The paper should not see it as its responsibility to help politicians promote their agenda by adopting their language. It would be more accurate -- and save space -- simply to refer to the pact as a "trade agreement."

 

- Advertisement -

Rate It | View Ratings

Dean Baker Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Dr. Dean Baker is a macroeconomist and Co-Director of the Center for Economic and Policy Research in Washington, D.C. He previously worked as a senior economist at the Economic Policy Institute and an assistant professor at Bucknell University. (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Federal Reserve Board and the Presidential Candidates

The Deficit Hawks Target Nurses and Firefighters

The Attack of the Real Black Helicopter Gang: The IMF Is Coming for Your Social Security

The profit on the TARP and Bernie Madoff

Poverty: The New Growth Industry in America

The Real Reason For The Government Shutdown