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Trump’s Brazil Trade Deal: Let’s Kill Their Massive Subsidies, Shall We?
President Donald Trump’s approach to trade and trade deals - is certainly revolutionary to the DC Deep State Swamp.
To Real America - Trump Trade is simple common sense.
Countries the world over have been royally screwing us for decades. Trump said this was titanically stupid - and pledged to end it. And in its place - engage in, you know, fair, actually free trade.
And so far - he has. And where deals haven’t yet been cut - the other sides have pledged to mostly stop their screwing of us.
You may not like Trump using tariffs like a trade vorpal blade. But neither does anyone else anywhere else on the planet - and that’s what has made them so very effective.
“‘We agreed today, first of all, to work together towards zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods,’ said Mr Trump, with Mr Juncker by his side.”
That’s the ultimate goal: “(Z)ero tariffs, zero non-tariff barriers, and zero subsidies.” With everyone - on everything we trade.
But if we’re prioritizing…
“Tariffs and import limits – reduce our foreign sales. Which of course damages our domestic producers…to a degree.
“But other countries’ subsidies – are stealth weapons killing us from within. They are an innumerable armada of Trojan Horses – which we have been willingly bringing inside our gates….
“Importing government subsidies – undercuts our domestic producers of…everything that is subsidized elsewhere.
“So millions of domestic producers – have been thusly driven either overseas…or into extinction. Taking with them tens of millions of domestic jobs.”
Speaking of heinous amounts of imported government subsidies…
Unfortunately, Brazil loves subsidizing the stuff they export.
“According to the (World Trade Organization) WTO, Brazil’s…providing prohibited subsidies.”
Agriculture subsidies specifically have been a real burr under the global saddle:
“The WTO's attempts to create an overarching architecture for international trade networks have stumbled repeatedly over the politically inflammatory topic of agricultural subsidies.”
When you hear about US farmers struggling…
It ain’t because of Trump’s tariffs. It’s because our farmers have been undercut for decades by global subsidies.
Which is why farmers remain steadfastly loyal to Trump.
Trump is the first DC official in decades - to address the real problems farmers face.
Some major global ag subsidizers - are willing to move downward:
“The EU has a broadly liberalizing trade agenda and wants to slash subsidies that obstruct the efficient flow of goods around the world and block big free-trade deals.”
Because “slash(ing) subsidies” - is an outstanding idea.
“Sugar subsidies have driven market costs for sugar well below the cost of production.
“As of 2018, 3/4 of world sugar production is never traded on the open market.
“Brazil controls half the global market, paying the most - $2.5 billion per year - in subsidies to its sugar industry.”
There are over 100 countries that trade sugar on this heinously-warped-by-government global market.
Brazil subsidizes their sugar $2.5 billion per annum - and controls half the market.
What a remarkable coincidence.
Brazil’s uber-subsidization - isn’t free trade. It isn’t fair trade. And it’s allowed them to dominate a government-dominated anti-marketplace.
So how about it, Mister President?
You should demand Brazil cut it out.
And restore some semblance of actual free trade - to all things trade.
This first appeared in Red State.