The leaders of developing countries are moving aggressively to remove trade barriers, while the U.S. sits on the sidelines. Taiwan and China, for example, are pursuing a bilateral free-trade deal, and South Korea, China, and Japan have announced talks aimed at eventually producing a free-trade bloc among the three nations. The European Union later this year could ratify a trade agreement with South Korea that would lower tariffs on its exports to the Asian nation.
On Capitol Hill, meanwhile, a free-trade agreement with South Korea languishes; like similar agreements with Colombia and Panama, this trade deal is largely the victim of politically influential labor unions and their hold on leading House Democrats.
How does a multinational react to this stall-out of the U.S. on world trade agreements? Instead of abandoning the Asian and Latin American opportunity, big companies are finding ways around trade tariffs, often by moving jobs elsewhere.
Read Full Article
Enjoy curated articles directly to your inbox.