My opinion is that there should be tariffs to make up for the differences in laws anywhere without similar laws - if you want to pay workers pennies a day no problem, but you're going to pay the difference on the way in. China might let you destroy their local environment but you'll pay for the effects of your pollution on the way in.
Trade deals should come with negotiations that will help us with our global warming problem at the very least - if you want to have a trade deal you'll need to match or beat the regulations we follow or the tariff will reflect an approximation of the difference in cost.
I think that it is a bit problematic that the majority of those for free trade also want policies that discourage domestic manufacturing like an increase in minimum wage and increased environmental regulations.
Otherwise we're just rewarding companies (many of which are American) with access to our market without having to follow any of our laws.
What about the state of California putting tariffs in place on any company incorporated in state Delaware because Delaware corporate law doesn't have certain investor protections in place? I could list countless examples of US States that have less stringent regulations but still have free trade and open borders.
My point is that is impossible to harmonize all regulations and even if it was would have no clear universal benefits.
Have you ever wondered why all credit card statement comes from North Dakota? Or why companies are incorporated in Delaware? It's not because they have the strictest regulations. I don't hear Republicans demanding that we erect trade barriers between states to keep jobs where they started in the first place.
The truth is the Chinese population is willing to except regulations that allow awful environmental practices because the manufacturing that harms the environment is a significant opportunity to improve their standard of living. Let's not forget that only a few generations ago they were literally starving to death. https://en.m.wikipedia.org/wiki/Great_Chinese_Famine
Bringing the Chinese population into the global trading network resulted in one of the most drastic, beneficial, and impressive increases in standard of living ever. Better yet China is now moving to reduce the environmental impact by moving into higher skilled manufacturing.
If it doesn't bring manufacturing jobs back (which it won't) it will do nothing, but lower sales. the amount lowered depends on the size of the tariff, and how much that makes the products unaffordable to the locals.
So yes, in the end it does work out to be a penalty to the origin country.
The only local harm relates to marginal utility, but this is offset by the benefits of national security and improvements to the mix of different types of employment.
What I see with "free trade" agreements is exploitation and creative accounting. Send your manufacturing one mile across the border to hire cheap labor through "third parties" that have much weaker workers' rights laws, no healthcare, and lax environmental oversight.
Then send those products back to the US and reap tremendous profit, while having your hands clean of any environmental or human exploitation because it was done on another "set of books" across the border. Same amount of damage, but we reap massive profits while keeping our noses clean. What's not to love about that ?
Exploitation is not ok, even in the short run, even if it produces a good outcome for the few who benefit from it. The massive profits made off the backs of mexican workers aren't going to mexicans, they are being exported back to the shareholders of the US companies who sent their manufacturing there.
> America needs to continue to increase sophistication of the economy by moving to higher skill services
Therein lies the inequality. Notice you said America needs to. We need to maintain that differential so that the exploitation keeps working. Because shareholders can't reap massive profits if everyone increases their sophistication. You have to keep the slaves in their proverbial cage, lest they run away.
My argument is that trade with the developing world will pull them out of poverty, decreasing global inequality, and as the population becomes wealthy, they will demand more labor, environmental and social protections. This is supported by the history of the developed worlds progress over the last 30 years.
I am not suggesting we preserve a differential between regions or countries. I am suggesting that free trade tends to create equilibrium over time as wages converge. I am also suggesting that tariffs and trade barriers preserve economic disparity as it keeps assets, labor, capital and knowledge locked behind these barriers.
I think a cursory reading of history supports this argument first with the development of the American economy and now the global economy.
Last point: China is now experiencing outsourcing of textile and furniture manufacturing to Vietnam and other counties because wages have become too high.
I dont see how the free market eliminated child labor. I see government regulation as eliminating child labor.
I agree with you on the principle that putting more dollars in poor economies is a good thing. But I cannot reconcile that with the fact that those economies are attractive to businesses primarily for the purpose of circumventing rules and established practices that help us (healthcare and environment, for example).
I was watching videos on youtube about the Bangladesh shipbreaking industry. All these western corporations used the ships to make money, then circumvent all environmental regulation by disposing / selling them to Bangladesh for scrap where the toxins go into the sea, workers paid $2/day have no safety gear for dealing with chemical/fall/crushing/burning hazards, and the handful who own the companies reap tremendous profits selling the scrap steel. Everyone wins...except for the poor, who risked/reduced their lives for the awesome consolation of a few bucks (not even considering any marine life that once lived nearby).
It's pretty hard to convince someone in Pennsylvania that free trade deals are good for them when the only factory in town just shut down because China flooded the marked with unbelievably cheap steel.
Your comment dismisses any concern that tariffs could be a bad thing, and ignores literally hundreds of years of research and experimentation that shows trade barriers to have negative effects on economic health and international peace. He may have little support from congress because congresspeople believe it to be _a bad idea_.