2012-11-07

Cato: A Divide and Conquer Trade Policy


California Rep. Devin Nunes has proposed what seems like a neo-con approach to trade policy:  Trade with our allies, not with our perceived enemies.  His goal is to make trade policy part of our general foreign policy, which, in his view, should focus on making alliances with our friends and isolating our enemies.
This is a bad idea, for many reasons.  I’ll explain the details of his plan a bit more, then I’ll go over all of the problems I see with it.
As he explains over at NRO, Rep. Nunes would like to create “an alliance of free-trading nations.” He supports the Trans Pacific Partnerhship (TPP) negotiations, and would also like to see U.S.-EU and U.S.-Brazil free trade agreements. He then talks about “distinguishing friend from foe,” and singles out Venezuela, the Gaza Strip, Russia and Egypt as countries who are “hostile” to the United States.

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