Debate Outline 1a

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1 Introduction/Background Trade tariffs have been around in the United States since the Tariff Act of 1789 o The first tariffs in the United States were introduced for two reasons: 1) to promote trade, and 2) to be a form of income for the federal government o The term “trade barriers” describes government-imposed regulations that modify international free trade. o Tariffs are taxes imposed on imported goods. o Source: https://news.law.fordham.edu/jcfl/2019/03/17/a-brief- history-of-tariffs-in-the-united-states-and-the-dangers-of-their- use-today/ There are different uses for tariffs according to Investopedia (use as political weapons is included): o Protecting domestic employment o Protecting consumers o National security o Retaliation o Source: https://www.investopedia.com/articles/economics/08/ tariff-trade-barrier-basics.asp Free trade “increases global production, world-wide consumption, and international efficiency. But…In the real world…there are several arguments that can be made to justify protectionist measures.” o Infant industries can be aided by tariffs and quotas because they help starting domestic industries develop and prosper o Strategic trade policy is used to help domestic firms compete with foreign competition, although domination in these industries is not always realistic, and the promises can’t always be kept o National security and the national interest argument : “Decisions about what constitutes a key strategic material are made by politicians, not nonpartisan analysts.” Policymakers have a responsibility to ensure trade- restrictive policies have specific purpose and a limited timeline to reduce the economic and political impacts on affected citizens. o Job protection involves maintaining existing jobs that are threatened by foreign competition Deemed the most important source of today’s protectionist policies o Cheap foreign labor and outsourcing regards American workers being protected against companies outsourcing overseas to cut labor costs
2 o Differences in environmental standards focus on how countries with lower environmental quality demands and regulations have a comparative advantage over goods that produce pollution and waste in comparison to countries that don’t o Source: https://courses.lumenlearning.com/suny- microeconomics/chapter/reading-justifications-for-trade- restriction/ “The range of goals that we pursue using sanctions has grown dramatically. As initially conceived by the victors of World War I, the main aim of threatening to impose sanctions on a country was to prevent diplomatic disputes, usually over territory, from escalating into wider wars. Today, sanctions are still used as a punishment for or deterrent against territorial annexation. But they are also imposed over human rights violations, to stop nuclear weapons development, to fight money-laundering, to contest election results, to force the release of political prisoners or even entire changes in government, and to limit the transfer of strategic technologies.” –Nicholas Mulder (Assistant Professor of Modern European History at Cornell University) o Source: https://history.cornell.edu/news/economic-sanctions- evolved-tool-modern-war Position Using commerce, tariffs, and other trade barriers as political weapons is a necessary economic and political move. It is a tool governments and policymakers should use to achieve the greater goals of national interest, human well-being, and domestic and global security. Arguments Point 1: Sanctions work. According to a 2014 study relying on data maintained by the University of South Carolina, “...at best, sanctions lead to concessions between ⅓ and ½ of the time.” o ( https://www.foreignaffairs.com/articles/united-states/2021-08- 24/united-states-sanctions ) EXAMPLE: The U.S. was outraged by the British-French-Isreali invasion of Egypt, so the U.S. prevented the UK from drawing currency from the International Monetary Fund reserves (which defended the UK’s currency) The run that followed on the pound caused London to withdraw its troops. o ( https://www.foreignaffairs.com/articles/united-states/2021-08- 24/united-states-sanctions ) “For the moment at least, Mr Trump’s sanction policy is a bright spot in an otherwise lamentable foreign policy record.”
3 o ( https://www.economist.com/united-states/2019/11/24/donald- trump-uses-sanctions-more-keenly-than-any-of-his-predecessors ) Also… Countries other than the U.S. throw their economic weight around. ( https://www.economist.com/asia/2021/02/27/asian-countries-are- learning-to-cope-with-chinese-bullying ) o Ex. China has sanctioned lots of countries recently (Lobsters from Australia) o China is an example of using tariffs manipulatively. o If you have a tool that works, but it gets misused, you don’t throw out the tool. (Eg. knives for murder vs. cooking) https://www.washingtonpost.com/news/worldviews/wp/2014/04/28/13- times-that-economic-sanctions-really-worked/ o The Washington Post lists 13 examples where sanctions have been effective in achieving peace and reducing heightening tensions. o The article also states near the end that sanctions may not always work, and these examples are only 13 out of 200 studied cases, but a quote at the end sums up the necessity of sanctions as political weapons in some cases. o "The early assessments of these targeted sanctions is that they are quite useful in signaling displeasure and as tangible signs of support for international norms," Kimberly Ann Elliott. "Their utility in changing objectionable behavior is more questionable." Point 2: Tariffs–to be effective–should be used sparingly. “Washington should use sanctions surgically and sparingly” o ( https://www.foreignaffairs.com/articles/united-states/2021-08- 24/united-states-sanctions ) “Over time, foreign powers could begin to create work-arounds that would make them less effective. If that happens, the Trump administration will have weakened one of America’s strongest non- military weapons.” o ( https://www.economist.com/united-states/2019/11/24/donald- trump-uses-sanctions-more-keenly-than-any-of-his-predecessors ) Sometimes increased sanctions actually increase illegal trade actions (example: UN sanctions on North Korea in 2016 because of its nuclear program and the black market with China and corrupt Chinese traders. o [ https://www.economist.com/asia/2016/03/03/big-bother ]) “From a policy standpoint, sanctioning states should ensure that human suffering and other adverse effects of sanctions do not outweigh the intended political gains….In cases where sanctions have been in place for years with no desired change in target regime behaviour, policymakers should consider lifting them to minimise the sanctions-induced instability and civilian harm.”
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4 o ( https://reliefweb.int/report/world/human-rights-effect- economic-sanctions ) “The paradox of sanctions is that effective use relies on a credible promise of their removal. You must commit to lifting restrictions when your demands are met. Right now, many Western governments are stuck in a ratcheting problem where they can only ramp up economic pressure but never lift restrictions. This not only defeats the entire democratic-behavioral model for sanctions, it also makes every new sanction less and less likely to succeed.” o ( https://history.cornell.edu/news/economic-sanctions-evolved- tool-modern-war ) Point 3: Sanctions should be used only when they clearly improve national interests. “Critics [of Trump’s tariffs] must face some uncomfortable truths. The first is that some of America’s frustrations with its trading partners are justified. o ( https://www.economist.com/finance-and-economics/ 2019/06/08/president-donald-trump-is-trashing-deals-in-favour- of-tariffs ) Tariffs cause companies to consider sourcing manufacturing jobs at home, which gives work to those in their local country. o ( https://www.economist.com/finance-and-economics/ 2019/06/08/president-donald-trump-is-trashing-deals-in-favour- of-tariffs ) “Economic interdependence and globalization has resulted in a system, where each country is largely dependent upon other countries for economic sustainability…This results in a substantial national security threat in the form of conflicting or offensive trade strategies between countries.” o ( https://socialsci.libretexts.org/Bookshelves/Economics/ Economics_(Boundless)/31%3A_International_Trade/ 31.5%3A_Arguments_for_and_Against_Protectionist_Policy ) Point 4: Tariffs and sanctions are preferred to warfare. A 2020 Gallup Poll found that 65% of Americans don’t believe we should strike another country first militarily. What the article pointed out is that small military missions rarely remain small and have the tendency to grow into a war. o For example, the Hamas-Israel and Ukraine-Russia wars. o ( https://www.foreignaffairs.com/articles/united-states/2021-08- 24/united-states-sanctions ) “Certainly [sanctions] seem an ideal tool for Mr Trump, who wants to put foreigners under lots of pressure but is reluctant to send troops or bombers to do the job.”
5 o ( https://www.economist.com/united-states/2019/11/24/donald- trump-uses-sanctions-more-keenly-than-any-of-his-predecessors ) “Sanctions are perceived to be an option for when words aren’t enough but war is too much.” Elizabeth Rosenburg o ( https://www.economist.com/united-states/2019/11/24/donald- trump-uses-sanctions-more-keenly-than-any-of-his-predecessors ) “Economic levers are much more practical than military levers.” o ( https://socialsci.libretexts.org/Bookshelves/Economics/ Economics_(Boundless)/31%3A_International_Trade/ 31.5%3A_Arguments_for_and_Against_Protectionist_Policy ) Additional Resources History of tariffs o https://news.law.fordham.edu/jcfl/2019/03/17/a-brief-history-of- tariffs-in-the-united-states-and-the-dangers-of-their-use-today/ China/US trade war o https://ezproxy.southern.edu/login?qurl=https%3a%2f %2fsearch.ebscohost.com%2flogin.aspx%3fdirect%3dtrue %26AuthType%3dip%2cuid%2curl%2ccookie%26db%3da9h %26AN%3d134356506%26site%3dehost-live%26scope%3dsite Trans-Pacific Trade Partnership History and Background o https://en.wikipedia.org/wiki/Trans-Pacific_Partnership Key Questions 1. To what extent should withholding commercial activities be used to force other countries to abide by our country’s agenda? Landon) To a very limited degree. Only in cases where national interests are being harmed, or the most severe human rights violations exist potentially. Faith) To the least extent possible. Trade barriers used as political weapons are necessary to global political and economic conflict, although the scale and effect on other countries and citizens economically (as well as our own country and citizens) should always be the primary objectives. 2. Should the concept of separation between church and state be extended to the separation of international commerce and politics?
6 Landon) No. The golden rule of politics should be, “What is best for the people?” In most cases, free trade is the most beneficial strategy for the people; however, we recognize even within our own economy that free trade does need checks and balances to avoid monopolies, for example. While trade barriers should be used cautiously, they do have their place as a substitute for war,, among other rare uses. Faith) There is no way to keep international commerce and politics separate. The economy has always been used as a point of leverage in political conflicts, and using trade barriers such as tariffs and embargos has been shown to be effective (for example: enforcing restrictions on Russia caused massive lows to its economy, increasing the pressure on continuing the Ukraine-Russia conflict Source: https://www.economist.com/europe/2018/08/30/americas- escalating-russian-sanctions 3. What are the long-term outcomes of weaponizing supply chains and extending commerce as political missiles? Landon) A less globalized economy and potentially higher prices for consumers. This is why trade barriers ought only to be used sparingly. Faith) The global economy and domestic prices and relations between countries suffer. The long-term effects should not be disregarded, and the “economic well-being of ordinary people” must be a concern of policymakers. However, national interest and the country’s well-being must also be taken into account, especially in regards to fragmentation of international relations and maintaining alliances. Source: https://www.imf.org/en/Blogs/Articles/2023/08/28/the-high- cost-of-global-economic-fragmentation#:~:text=While%20estimates %20of%20the%20cost,%247.4%20trillion%20in%20today%27s %20dollars. 4. Under what conditions/principles can commerce be used as a political weapon, and when is it inappropriate? Landon) As a substitute for warfare when possible, and when the trade barrier clearly improves the lives of a nation’s citizens. It is inappropriate when those people imposing the tariffs are more concerned with their own power and ego, rather than fighting for what they believe is best for the citizens they represent. Faith) Commerce can be used as a political weapon when the disagreements are particularly economical (trade relations, in response to another country’s sanctions/tariffs/embargos, to support our allies’
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7 economies, etc.). In addition, commerce can be politicized when national security and safety are at risk (examples: North Korea, Russia, China). Sources: https://www.economist.com/asia/2016/03/03/big-bother , https://www.economist.com/europe/2018/08/30/americas-escalating- russian-sanctions , https://www.bbc.com/news/business-49199559 . 5. It appears that many commercial missiles targeted at other countries originated from the USA, while few, if any, have been targeted at the USA. How would your views be influenced if the USA was the target? Landon) It would not change my perspective. I believe unrestricted free trade is an acceptable sacrifice on the alter of avoiding warfare and increasing the livelihood our our own nation. Faith) Of course, it is easier to say, “Yes, we should impose trade restrictions as political weapons on other countries who have wronged us or others in one way or another,” when we don’t feel we will be directly impacted. However, we have been directly affected by many trade restrictions and conflicts affecting the global economy (and ours specifically, such as the US-China trade war [Source: https://www.bbc.com/news/business-49199559 ]). Sometimes we must sacrifice perfect economic health for the safety of our country, as nuclear war and any type of war should be avoided at all costs; trade restrictions are often one of these costs.