Thomas Friedman made a very good point in his op-ed column on CAFTA in the Times today (6/24/05).
The hazard of protectionism in a rapidly growing global economy is shutting yourself out, proverbialy cutting off your nose to spite your face. With China on the make, particularly, it is almost certain that trade barriers between the US and Central America would undermine joint ventures between US designers and Central American producers. Competiton with China is going to be nip and tuck and we shouldn’t let protectionist urges do that.
First, though, let’s take a moment and celebrate the problem. It’s been a hundred years or so that the developed economies, the US and old Europe mainly, have been doling out a few fish and unsuccessfully trying to teach the rest of the world how to catch their own. It was a largely disappointing enterprise, save for easing our guilt for being rich and not knowing how to share it. Continue reading Trading up