Wednesday, September 16, 2009

Trade Away

IDFA is concerned about trade. So far, I have not seen IDFA worry about American dairy farmer income:

President Obama Agrees to Restrictive Duties on Chinese Imports
Late last Friday President Obama responded to a trade issue involving lower-cost Chinese tire imports by handing down a decision to implement the trade restrictions recommended by the International Trade Commission. His decision includes imposing duties of 35 percent in the first year, scaling down to 30 percent in the second year and 25 percent in the final year. In addition, the President also decided to extend trade adjustment assistance to laid-off workers in the domestic tire industry.

The United Steelworkers recently filed a complaint with the International Trade Commission, blaming Chinese tire exports for the loss of more than 5,000 American jobs. Because the group has no authority to implement the plan, the recommendation was sent to President Obama for review and action.

The response from the Chinese already has implicated the U.S. poultry sector, and IDFA remains concerned that other agricultural products, including dairy, may be vulnerable to retaliation. IDFA had previously signed onto an industry-wide letter, urging the president to consider the ramifications of agreeing with the ITC and warning against the dangers of protectionist trade policies.

"President Obama's mandated tariffs impose duties at a slightly lower rate than the ITC's recommendations, but the trade ramifications and protectionist implications are still potentially dangerous for IDFA and its members," said Clay Hough, IDFA senior group vice president.

No comments:

Post a Comment