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Good for President Zardari

Wednesday, June 17, 2009
From Pakistani daily, Dawn:

"President Asif Ali Zardari said Wednesday he hoped to secure better access to European markets rather than more aid, ahead of a landmark EU-Pakistan summit focused in part on trade.

‘What I need is trade, not aid. I'm looking for MOUs (memoranda of understanding) and not IOUs and I intend to get them,’ he told journalists after meeting with Nato ambassadors in Brussels".

Hear, hear.


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Straw man o' the day

Friday, June 12, 2009
As set up by Baron Mandelson, of Foy in the county of Herefordshire and Hartlepool in the county of Durham. Or Peter to his friends.

"We have too often acted as if we have nothing to learn from the rest of Europe, or gain from closer European co-operation," explained Lord Mandelson. "After the crunch, that attitude is simply no longer credible.

"No matter how badly a downturn might tempt us to think and act in national silos, the next five years will in fact demand an even greater Europeanism from us."

The warning followed gains from eurosceptic parties in the European Parliament elections last weekend".


Presumably he means the Tory party and UKIP, given that No2Eu etc did not exactly set the Thames, or come to that the Tyne, on fire. Both parties are committed to free trade, so what is he playing at?


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Hurrah for the youth of America

Wednesday, April 29, 2009
In comparative terms, as 18-29 year olds are the demographic most likely to see free trade agreements as a 'good thing', at a still somewhat lukewarm 62% to 19%. 50-64 year olds go the other way at 32% / 47%, while I worry about the 30% of the 65+ cohort that cannot muster the intellectual challenge of having an opinion.

Elsewhere, black folk are more supportive than white folk at 47% to 42% and an alarming 34% of college graduates are, it would appear, in the grip of the mercantilist fallacy as they deem free trade a bad thing.

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EU in 'getting something right' shocker

Wednesday, December 10, 2008
Yes, really.

"The European Commission has ruled that 16 developing countries no longer have to pay import duties. The ruling mainly effects countries in Central and South America, as well as Georgia, Azerbaijan and Mongolia.

The measure will save these countries hundreds of millions of euros in duties and applies to thousands of products from tobacco to vegetables and fish".

I wade through any amount of guff at the EU newsroom but found this at Radio Netherlands, of all places. Searching the website has not disclosed the names of the other 13 countries. Anyone would think the EU was ashamed of this development. Anyway, more of this please, much more.

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Thinking. Why bother?

Thursday, October 23, 2008
"[Trade and Development Minister] Gareth Thomas (background - secondary school teacher) is backing the new 'Be an Ethical Pest' campaign created by the Ethical Trading Initiative"

And there's more:
"This is not just about trade; it's about trade that works for local people. The public are entitled to know how ethical different shopping chains are - which ones are committed to getting their suppliers to pay a living wage, how transparent they are about their supply chains and which can be trusted never to source goods made with child labour."

Questions to ask when out shopping from the ETI's Ethical Pest campaign;

* Do you know which country this product comes from?

* What are you doing to protect the rights of workers who are making your products?

* Do you know how much the workers making your products are paid?"


Fortunately, those fine people at Mises.org have a handy cut out 'n' keep rebuttal:

"If you're criticizing a "sweatshop," make sure you have a good reason for it--i.e., criticize a sweatshop if it is actually enslaving people, committing fraud, or something like that and not because it pays "low wages" or offers lousy working conditions. Most of us in the developed world would recoil in horror at the idea of working in a "sweatshop" for pitifully low wages and in relatively unsafe working conditions. That is because we have better options. Many people around the world, however, are not so fortunate, and their working conditions have roused the indignation and anger of many around the world. These sweatshops are better than poor workers' next-best options, which is always a job that offers either lower wages or worse working conditions. In the case of some laid-off child workers in Bangladesh, the next best alternative was prostitution or starvation. Economists Benjamin Powell and David Skarbek have studied sweatshop wages and conditions around the world and have found that sweatshops usually offer higher wages and better working conditions than average for the countries in which they operate. The road out of poverty can be long and arduous, and closing off opportunities for the very poor only makes that road more difficult to travel".


Note also that by insisting on 'Western' pay and conditions for developing world economies, one is undermining the competitive advantage those economies have. So protectionism under a false flag...

I could have sworn I had written about 'Fair Trade' products before, but if so cannot lay hands on the reference. So, briefly, anyone buying overpriced 'ethical' coffee etc is at best only doing a very short term favour to the growers etc, as the inability of folk to make a living from growing coffee or whatever is a clear pricing signal that they should find another way to make a living. As and when demand for the product abates - and do not doubt that it will when tastes change or purse strings are tightened -growers etc will be out of work with precious little warning and therefore limited opportunities for immediate re-skilling. One might also ask why it is that areas of agriculture bring out the sentimentalist rather more than dock work, estate agency, fax bureaux etc etc.

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French Socialist Énarque 'gets it right' shocker

Thursday, September 25, 2008
This being Pascal Lamy, head of the WTO:

"They are all stressing that lessons from the Great Depression have been learned, and that the many policy mistakes that were associated with it will be avoided. But one of the important lessons of the Great Depression, which we must not forget, is that “protectionism” and economic isolationism do not work. They are policies of the past, which should have no place in our future.

....

Some of these topics, if successfully addressed, can already go a long way towards addressing problems such as the food price crisis and climate change. The reduction of agricultural tariffs and subsidies would allow agricultural production to shift more towards the developing world; enabling supply to better adjust to demand; easing the structural causes of the food crisis. Similarly, trade opening in environmental goods and services, in particular in climate-friendly technology, can make vital pollution prevention and reduction equipment more accessible to countries in need; thereby easing the climate crisis.

Less of the climate change alarmism please, but otherwise right on the money.

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Failing to learn from the mistakes of others

Monday, August 18, 2008
The good bit:

"Eleven of the 14 countries that are part of the Southern African Development Community (SADC) will participate in the free trade area".

The stupid bit:

"plans for a common currency by 2018".

Integrating successes like Botswana with basket cases like Zim would make the efforts of the EU look quite unambitious....

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Three cheers for Cape Verde

Saturday, July 26, 2008
I can't say that my top of mind recall of Cape Verde goes much beyond, 'erm, islands off the coast of Africa, ex Portuguese colony', but having seen that it has just joined the WTO, went for a little dig:

"Since 1991, the country has pursued market-oriented economic policies, facilitating foreign investment, fostering the private sector through privatisations, developing tourism, light manufacturing industries and fisheries. Cape Verde has also developed its transport, communications and energy facilities".

And it has worked: "In 2007 the United Nations graduated Cape Verde from the category of Least Developed Countries, only the second time this has happened to a country".

The other country to get promotion is Botswana, also a free market orientated democracy.

As a footnote, the WTO states "Any state or customs territory having full autonomy in the conduct of its trade policies may become a member (“accede to”) the WTO". The UK is a member, but can it be said to have 'full autonomy in the conduct of its trade policies'? Open to debate, isn't it?


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'Television without frontiers'

That is the name of an EU directive on matters televisual. If, as the saying goes, it does what it says on the tin, one would hope it would be a clarion call to free trade in goods and services. But it does not:

"Article 4 of the “Television without Frontiers” Directive calls upon EU Member States to ensure "where practicable and by appropriate means" that broadcasters within their jurisdiction reserve the majority of their transmission time for European works".

Prima facie this sounds like a pretty grotesque violation of the GATT agreements, and one can be stone-cold certain just which originator of material this is aimed at - the US of A, of course.

The release goes on to show the percentage of material shown in each market that originates in the EU, with Sweden bottom of the class at 45% and ourselves (53%), Slovenia (52%), the Irish Republic (55%) and Greece (55%) also all on the naughty step. Poland (81%) and Denmark (81%) are this year's teacher's pets.

The item doe not make clear quite what constitutes the broadcasting universe per market - all TV stations including those weird shopping / religious / music etc etc channels one sees when channel surfing when at a Sky-enabled house, those available through a normal television or whatever. However it is calculated, it must be broadcasters overall not broadcasters one by one. Otherwise the likes of Five USA let alone the likes of the Tamil film channels would be regulated out of existence. Further, those raw figures tell nothing about what is popular, what is scheduled when and where and so on.

However, the overall point remains that the EU is in its usual way showing scant regard either for free trade or the wishes of the populace. Should the entire population of Cyprus wish to sit down to back to back repeats of 'Gilligan's Island' or Denmark discover the delights of Australian soap operas, their governments should not be facing even mild criticism from the EU - it is none of its damned business, frankly.

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Trouble for the Revenue?

Monday, June 23, 2008
Good news - for once - from the EU.

This is what EU Consumer Commissioner Meglena Kuneva had to say the other day, while in these parts:

"It is particularly important for consumers to challenge the acceptability of business models based on geographical discrimination. In the world we live in, we are not obliged to shop in the supermarkets and stores of our postal code. We are not constrained to buy in our municipalities. We should also not be forced to shop within our national borders. Yet we cannot buy computers, train tickets or play-stations freely across the EU. We are forced to buy domestic. Let me be clear, there is no place in Europe's Single Market for artificial geographical restrictions which hold consumers back within national borders. I am in the process of carrying out a study on e-commerce, which I hope will start to launch the debate."

That, made law, would rather put the kibosh on our penal duty rates on tobacco and alcohol....

(NB - One does need the EU in order for cross border trade to flourish....)


Meanwhile, in another release quoting the redoubtable, and not uneasy on the eye, Ms Kuneva, she is shocked, shocked, that fewer consumers engage in cross-border e-commerce than domestic e-commerce. Erm, penal international postage, exchange rates (in some cases) and language problems?

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