Subscribe to our free, weekly email newsletter!



Smoot-Hawley redux?

While there is scant evidence that a job crisis would be eased with a “Buy American” policy, several prominent economists believe that protectionism would make the situation far worse.
By Patrick Burnson, Executive Editor
October 05, 2010

According to the Wall Street Journal, U.S. shippers are going to have a hard sell when in comes to going global.

In its feature, “Americans Sour on Trade,” readers are told that popular sentiment against off-shoring and out-sourcing is being driven by the continued slump in U.S. employment figures.

While there is scant evidence that a job crisis would be eased with a “Buy American” policy, several prominent economists believe that protectionism would make the situation far worse.

Curiously, with President Obama now promoting an aggressive export agenda, such a development would hasten the rise of tariffs on American goods that cross-border shippers are already seeing in Mexico.

Speaking with Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, we found an enlightened voice:

“As trade professionals we understand the benefits of unfettered commerce,” he said. “But try telling that to someone who has been out of work for some time.”

Indeed, our job as communication specialists is to counter the misinformation of mainstream media and calculating politicians and be evangelists for globalization.

The first move, one might argue, is to revisit the unintended consequence of the Smoot-Hawley Tariff Act of 1930. Forget “double-dip.” Now we’re talking Great Depression.

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

Article Topics

Blogs · Trade · Exports · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA