Protectionism or Free Trade?
Many of our basic freedoms are guaranteed by the Constitution. Speech, press, assembly, religion: these are all accepted as sacrosanct rights by reasonable people across the political spectrum. But should we not have the same freedom when it comes to the economy?
Lessons from the SmootâHawley Tariff Act of 1930
The various tariffs that President Trump has imposed since retaking office are based on delegated authority found in several existing statutes. But a century ago, tariffs were primarily the purview of Congress. One of the most controversial manifestations of U.S. tariff legislation (and of American legislation in general) was the SmootâHawley Tariff Act of 1930, signed into law by President Hoover shortly after the United Statesâand the worldâfell into the black hole of the Great Depression.
Americaâs Misunderstood Trade Deficit
Several fundamental conditions are widely presumed necessary for a country to enjoy the benefits of global trade. One condition is that import activity ought not exceed export activity. Put more simply, we must sell more than we buy. On its face this seem reasonable. It seems logical that a trade deficit (that is, selling less than we buy) is a drain on our economy. Indeed, every month the news media feed us the bad news about the negative âbalance of tradeâ data reported by the Commerce Department.
Punctuation in the Harmonized Tariff Schedule of the United States
Punctuation matters. Iâve always remembered a poster on the wall of a co-workerâs officeâthis was back in the 80sâthat showed baby seals dancing at a disco under a four-word caption: STOP CLUBBING, BABY SEALS. The poster (which has become an internet meme forty years later) cleverly showed how something as seemingly minor as a comma can change the meaning of a phrase or sentence. If a comma can flip the meaning of a four-word sentence, is it hard to imagine the effect that punctuation, or lack of punctuation, might have on our interpretation of a law or regulation?
The Ghost of CDSOA Still Haunts Us
One of the most anticipated decisions of the Supreme Courtâs recent term was Loper Bright Enterprises v. Raimondo. While the specific underlying dispute in Loper Bright isnât relevant to the trade communityâdid fishermen have to pay for government-mandated observers on their vessels?âthe Court used this case to overturn the broadly applicable judicial deference test established in 1984 in Chevron U.S.A. Inc., v. Natural Resources Defense Council.
Aluminum Extrusions from 13 Countries â Commerce Makes Affirmative Final AD and CVD DeterminationsÂ
On September 27, 2024, Commerce announced its affirmative final determination in the ongoing AD / CVD aluminum extrusions investigation. On the same day Commerce also posted its Final Scope Issues and Decision Memorandum. In both, Commerce almost uniformly deferred to Petitioners in dismissing numerous comments of interested parties primarily challenging the scope of the investigation on a wide range of legal theories and practical considerations.
The Future of Environmental Protection Laws and Trade Agreements
Historically, trade agreements have focused on reducing barriers to tradeâsuch as tariffs and quotasâwhile encouraging economic integration and growth. Environmental protection was often considered a separate issue, addressed primarily through national regulations or multilateral environmental agreements like the Paris Agreement. However, recent developments suggest that trade and environmental concerns are converging, with many new trade agreements incorporating specific environmental provisions.
BRICS – Shaping the Future of Global Finance and Investment
Imagine a world where five powerhouse nations are redefining the global economic landscape. BRICSâan acronym for Brazil, Russia, India, China, and South Africaâis not just a coalition of emerging markets; it is a formidable alliance shaping the future of global finance and investment. You can read about the coalitionâs attempt to unseat the US dollar in our previous newsletter.
The Trade Powerhouse: Analyzing Texas’ Role in Global and National Trade
Texas isn’t just celebrated for its breathtaking landscapes and rich historyâit’s a dynamic powerhouse in international and interstate trade. As the second-largest state in the U.S., Texas capitalizes on its strategic location, diverse economy, and vast infrastructure to fuel an extraordinary flow of goods and services. If Texas was a country, it would be ranked as the eighth- largest economy in the world, ahead of both Canada and Russia.
New Presidential Proclamations – Section 232 Duties on Certain Steel and Aluminum Products from Mexico
On July 10, 2024, the President issued two Presidential Proclamations related to the imposition of Section 232 duties on certain steel and aluminum products from Mexico. The first establishes a âmelt and pourâ requirement for imports of steel articles that are products of Mexico and will increase the section 232 duty rate for imports of steel articles and derivative steel articles that are products of Mexico that are melted and poured in a country other than Mexico, Canada, or the United States.
