Doha timeline | Business | guardian.co.uk
Just when I was certain that the U.S. had traded in its heart and soul, the Red and White and Blue makes a sobering show at what has been dubbed the Doha Round Collapse. What is unavoidably intriguing is that, while the U.S. maintained its typical monopsony approach, the power-share at the negotiations table has changed, for good I would presume.
In years past, I believe it is safe to say that the U.S. has been able to use its market muscle--production in some areas, but mostly its buying power--to ensure that trade deals protected its politically sensitive domestic areas, such as agriculture and manufacturing. The results stemming from the Doha trading rounds provides strong support that the U.S.'s leverage has subsided.
This structural change should not be taken lightly. I can think of no greater example of willful ignorance than Ford and GM's failure to observe the shift in the terms of trade. If we don't develop a transitional scheme to reflect the changes in our comparative advantages, we will be about as marketable as a country as the Ford Expedition. The break in the Doha round provides an opportunity to develop a long-term, multilateral plan. I fear that instead of choosing that path, our Washington wisdom will see it as an opportunity to cease on more Regional Trade Agreements. That's unfortunate, as I can think of no auto alliances that have made our domestic industry more competitive compared to Japan, China, Korea, and Mexico.
We need a solution, not a temporary fix.
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