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112 sats \ 2 replies \ @optimism OP 19 Jul \ parent \ on: [podcast] Scott Lincicome: How much will you pay to 'buy American'? (reason) econ
I formulated this to myself as not a concept of absolutes, but relatively. A couple of decades ago when I worked interim for a Canadian high-end industrial tool manufacturer, not just the proximity, but the NAFTA-enabled barrier-free trade was making the US a powerful market. When a US customer asked for something, we'd pay much more attention to it than when a European customer would, because it was easier to do business and to sell a particular requirement to more than just one client.
Nowadays, Canada has a better treaty, from the ease-of-business (and reliability) perspective, with the EU than with the US (mostly because all the insane EU laws are anyway present in Canada, so there's no real additional friction there.) I can totally imagine that solutions get more and more tailored to European ideas and requirements as trade with Europe grows relatively to the US in that organization - maybe I should travel to ON, have some beers, and find out - and that is a slow path to decreasing US business because the product will start to slowly fit less into the US market demands - though note that this would require not 3 months but a decade or so of the same decisions we've seen recently.
The more barriers to trade you erect, the more isolated you'll become. This is a slow process though, and 3 months or a year of uncertainty can be overcome, except for those that are leveraged too much.
Great articulation. I have no issues with any of that.
I'm skeptical that these other nations will advance very far in reducing their bilateral trade barriers, though. Trade reinforces comparative advantages, which destroys some domestic industries, and these countries have their current barriers specifically to protect those industries.
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I'm skeptical that these other nations will advance very far
India, if they focus. UK, if they are finally ready to deliver on that Brexit promise. EU seems lost.
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