Ditch the Tariff

Like cheaper electronics? This article is an opinion piece from the NY Times.

Tariff: a tax on certain imported and/or exported goods.  

A Smart Deal to Cut Tariffs on Tech Products

More than 50 countries agreed on Friday to eliminate tariffs on a wide range of technology goods like medical devices, navigation equipment and advanced semiconductors in a trade agreement that should benefit American manufacturers, consumers and the global economy.

Signatories to the Information Technology Agreement, which covers 201 product categories, include the United States, the European Union, China, South Korea and other members of the World Trade Organization. International trade in those goods totals about $1.3 trillion a year, or about 7 percent of all trade.

Negotiators say this agreement is the most significant deal struck at the W.T.O. in almost two decades. Completion of the much more substantial agreement known as the Doha Round, which began in 2001 and includes all 161 W.T.O. members, has been delayed by disagreements between countries like the United States and India.

Given the slow progress on the Doha Round, some countries have sought to reduce trade barriers through bilateral, regional and sector-specific trade deals. Under sector-specific deals, countries agree to eliminate tariffs on a list of goods. Some W.T.O. members, including the United States, are negotiating a similar deal on environmental goods like solar panels.

Sector-specific deals tend to benefit the whole world even though they are not signed by the entire W.T.O. membership because signatories agree to charge no tariffs on the listed products even if they are exported by nonsignatories. By contrast, the benefits of bilateral or regional pacts are reserved for countries that are party to them.

Sector-specific deals are focused on eliminating tariffs and do not cover contentious issues like labor, intellectual property and environmental standards. Those issues are big components of the regional trade pacts that the United States is currently negotiating — the Trans-Pacific Partnership, which includes 12 Pacific Rim nations, and the Transatlantic Trade and Investment Partnership with the European Union — which is why they take years to negotiate and can face significant opposition.

The tech trade deal will require markets like China and the European Union to eliminate tariffs, which are as high as 35 percent on some goods, between 2016 and 2019. With the United States exporting about $100 billion a year in products covered by the pact, businesses and workers could see big benefits if lower costs to foreign consumers create higher demand for American products.

http://www.nytimes.com/2015/07/27/opinion/a-smart-deal-to-cut-tariffs-on-tech-products.html?_r=0

China has really high tariffs obviously to protect their domestic businesses.  China is also in-demand because they can provide cheap labor for the other countries mentioned in the article.  It’s great to buy the electronics that you want/like for less cost, however, I wonder how much tariffs make up the nations mentioned’s budgets because of this cut in income.

These little plastic and metal things are in a lot of goods, like cars. I saw a short video recently where it was possible for people to hack cars and you know what bad things can happen with hacked cars.  [Side thought: Russians are such terrible drivers that so many accidents occur each day.  In addition, almost all cars there have cameras to capture those accidents to prove one side didn’t cause the accident, to get the license plate, and the other driver(s).  Go on youtube and find some].  A lot of cars are sold and plenty of other tech toys, so a lot of money will not be floating around.

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Leanne

I began writing Elle's Adventure in China (EACh) in June 2014 as a fun summer project, but as obstacles kept interfering with my plans, I forked and forked more options. I took writing this novel much more seriously in mid-July, and want to have it officially published someday in my lifetime. As many artists put their hearts into their projects, so do I. I did not start out liking to read, but a professor suggested a book for me for homework a few years ago, and it was an amazing book. Since then, I read for pleasure, and I hope my novel, Elle's Adventure in China, does the same for as many of you as possible. The same thing goes to writing. I did not like to write until I took a course where the professor and papers made me love to write. I hope every one of you find what makes you happy and dedicated to work. In May 2015, I started my other blog, Read and Write Here (R&WH), as a place to post other things that aren't China- and Chinese culture-related and not EACh. I share some of my memories and experiences from student teaching, irregular participation in Daily Prompts, etc. I'd like to have regular people and bloggers to write book reviews and post it on R&WH someday. Keep reading and writing!

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