Friday, November 12, 2010
U.S. Hit by Trade Setback
This article talks about the failed talks between the US President and the South Korea President at the G20 Summit. There were many issues which were unresolved and critics fear that this will severely imapct the export industry of US . However, a lot of exporters in US are backing Obama's decision as they believe that the deal would have been bad for the US workers. But how well will this go down with the rest of the country is hard to tell.
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An article in the NY Times this past week highlighted President Obama's difficulties at the G20 in reaching trade agreements with other countries. The article suggested that it may be because the President has lost some of his 'dim' with the Democrats' recent setback in the midterm elections. Obama, though, suggests that these difficulties have always been there, and that he had just as much trouble reaching exchange rate agreements with China when his approval rating was at 65 %. More importantly, Obama said that other countries are becoming stronger and as a result are becoming more assertive in their trade demands.
Promoting exports is perhaps the most important task at the moment to increase domestic jobs so this surely is not a good news at all. Failure in trade deals does not only worsen the employment rate but also the relationship between the two countries. I hope the government will soon find common grounds between the U.S and other countries to make trade talks successful.
I totally agree with JP in the importance of export. However, the issue of pride might comes in to the picture as the US is the superpower. It might be hard for many Americans to believe that they will also need other nations to "help" them get their economy back up on track.
Yes Im sure those who are educated know very well that we need China to help the American economy to get back on track. Look at the current so-called trade war that is going on. If China "helps" America by reevaluate the reminbi, it will give American jobs back. In fact, I dont think the issue of pride matters at all when it comes to your jobs, your money, and your family.
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