Sunday, July 8, 2012

Potential trade wars heat-up with election

The Obama administration asked for “enforcement action” from the WTO on Chinese import duties on US autos. This is expected during an election period. Job creation is key with any election, so this government move is not unusual but with slow growth around the world. It has strong ramifications. Action on China may be necessary but it is not without costs. There is the threat of retaliation and that is how trade wars begin. 

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