First: The Good News
Today we have been advised by the national newspaper in Australia, The Australian: "PM's China Trade Deal Coup" on the front page. Finally progress in the field of trade with Australia's potential largest trader, we will no more details on Friday when they sign the document that formalises the "agreement to talk on trade". To think, a neo-conservative government in Australia has achieved such a relationship with a now progressive government in China. Makes me think of that old Vulcan saying, "Only Nixon could have gone to China." Referring to a previous generation during the dark period of the Cold War.
The idea of Free and Fare Trade between nations has been floating around for centuries and used by the powerful traders to enslave and disadvantage other nations. Now two former colonies of the former British Empire are negotiating in good faith towards a mutual beneficial trade agreement. Australia has a wealth of natural resources and China a huge market with skills and cheap labour. Each nation is seeking development of the hi-tech industries which include genetic-biology now, it will therefore be interesting how the two years or so of negotiations will pan out. Australia would like it all rapped up before the 2008 Peking Olympics.
"One well-placed source said last night that it put Australia "higher up the pecking order" in terms of negotiating specific deals with China". This all make the criticism from Asia, particularly the comments from Dr Mahathir Mohamad that Australia wasn't Asian enough look less seious a criticism. Also, with the currant trade negotiations going on between Australia and the US, it should give a bolster to our side. I've have maintained for sometime now that the development of a large middle-class in China and India will change the Power Structure of the world despite a dominant US position at this time. Unless the US scuttles these negotiations, the future is looking bright for "The Land Downunder".
Second: The Bad News
This morning on ABC NewsRadio I heard a report on the effect of trade tarrifs on employment, some study indicates that more workers lose their jobs from the automobile industry and othet users of steel when steel prices go up due to tarrifs on steel imports than are saved by the tarrifs in the Steel Industry. Again and again the evidence that trade tarrifs makes for an inefficient market comes forward, time and time again the evidence points to job losses in associated industries and the export of jobs overseas. It is about time the US President took a leadership position against the special interests and for the interests of the workers and cut the tarrifs and retrain those steel workers who ose their jobs in that industry. Done staright after an election it will be forgotten about by the time the 4 year cycle comes around. The same criticism applies to other of the Industrial Nations, including Europe and Japan. Australia has gone through these changes and has come up good, surely they can do it too!!!
Comments to me at clifford.dubery@optushome.com.au
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