Vietnam trade bill defeated in US House

In a striking blow to free(er) trade principles, a bill in the US House of Representatives died after failing to receive the two-thirds majority required under special House rules. The bill would have normalized trade relations with Vietnam, thus paving the way for a Vietnamese entry into the World Trade Organization.

President Bush is due to attend the Asia Pacific Economic Cooperation summit meeting in Hanoi next week. He had hoped to trumpet the passing of the bill as a milestone in opening up trade with the communist country. The Bush administration still has hopes for normalizing trade relations with Vietnam, although with the current political climate, it seems that the Republicans and Bush have a difficult path ahead.

This defeat is a setback for the global economy, especially with Asia trade relations. As demonstrated in the Chinese model, trade is a proven way to open closed societies and to further the influence of freedom and democratic principles. Normalized trade relations with Vietnam could have been the crack through which democracy could slowly infiltrate Vietnamese society.

For further reading:

A setback for Vietnam trade bill (IHT)

Vietnam trade bill fails in U.S. before Bush visit (Reuters)

House set to approve trade bill for Vietnam: lawmakers (Reuters)

Two groups that make a difference: ONE and DATA

Charities have always been cause for suspect. While there's something noble about altruism, most charities or activist groups tend to rub me the wrong way. Usually it's due to self-righteous pontificating from the leaders of a particular group that turn me off to supporting various causes.

However...

There is a cause in which I strongly believe. The DATA group is an organization dedicated to improving the situation on the African continent through economic, rather than "charitable" means. Essentially, this group favors eliminating poverty through global trade. Rather than throwing money into a black hole under the guise of "helping," DATA prefers to influence policy to promote a free-market escape from the chains of AIDS, poverty and oppression. I would encourage everyone to read more about DATA and sign on to support their efforts.

The ONE campaign is a sister organization that is not about donating money, but about donating a voice. This non-partisan group is dedicated to ending poverty by working with governments and influencing rather than simply screaming to the masses as many advocacy groups unsuccessfully do.

What is ONE?

ONE is a new effort by Americans to rally Americans – ONE by ONE – to fight the emergency of global AIDS and extreme poverty. ONE is students and ministers, punk rockers and NASCAR moms, Americans of all beliefs and every walk of life, united as ONE to help make poverty history. ONE believes that allocating an additional ONE percent of the U.S. budget toward providing basic needs like health, education, clean water and food would transform the futures and hopes of an entire generation in the world's poorest countries. ONE also calls for debt cancellation, trade reform and anti–corruption measures in a comprehensive package to help Africa and the poorest nations beat AIDS and extreme poverty.

Here's a video:



Now go do something. Add your name to the ONE declaration.

My vision of globalization

The concept of globalization as I mean it, is not necessarily the homogenization of cultures, but more the homogenization of economic systems to facilitate the unencumbered exchange of products and ideas. Globalization is the economic equivalent of freedom of speech. Of course, we all know that freedom of speech is not, nor should it be absolute, just as free trade should not absolute. However, the concept of freedom of speech as well as globalization is overall a good idea. Obviously, with trade and speech, there should be certain limits in order to not squash the rights of others. For example, US, EU farm subsidies are an example of where limits should be enacted. Those subsidies effectively limit the economic freedoms of developing countries (such as in Africa.) Those subsidies are not just unfair, they distort the market. Just as the media can distort elections via biased coverage.

My globalization ideal would involve graduated elimination of all tariffs, but of course that would require the graduated elimination of domestic subsidies. Over time, the markets will create a more efficient and productive environment. This is the stated aim of the World Trade Organization, however domestic political agendas often preclude trade fairness. Much as Colorado can trade products and services with Illinois with minimal regulatory interference, I would hope that America and Zambia, or France and Uzbekistan could enjoy similar trade efficiency.

Economic balkanization is a poison. It is one of the root causes of poverty. If Africa can't sell tulips to Europe because the Dutch oppose tariff elimination, then Africa effectively will have a smaller or reduced market for their products, thus perpetuating poverty in that region. Bono is more of an expert in that area than me, go visit the One Campaign website for more about African trade and poverty.

I am not in favor of cultural imperialism from any country. I am in favor of eliminating barriers to trade as it will benefit all economies, from developed countries like the US all the way down to small Bangladeshi basket weavers.

Much as the civil rights movement in the United States reduced barriers between races, I want to reduce barriers between economies. Racial segregation seemed like a good idea to some people throughout history just as economic segregation seems like a good idea to some now. Realizing that segregation hurts a country took many years, but looking back it seems obvious (to most of us) that segregation was wrong, both morally and economically.

A rising tide will raise all boats -- we just need to ensure all boats are ready for the rising tide.

Read a speech from the WTO Director General Mike Moore about Globalization. In the speech he explains that "globalization works."

For an alternative view check out the Free Trade section of GlobalIssues.org. Much as I slant strongly in favor of globalization, this site provides links and commentary slanting against free trade policies.