The Corner

Fair Trade?

The Bush administration has already tarnished (to put it mildly) its free trade credentials. Comments from the President in Milwaukee Friday (via Reuters, but I cannot find the link) suggest that he’s prepared to do so again:

“We’ve got to have free trade policy that includes fair trade…Fair trade means currency policy is fair.”

’Fair trade’ is, all too often, a euphemism for unfair tariffs, worse still, the talk about ‘fair currency’ is clearly designed to reinforce the pressure on China and Japan to let the dollar fall against their currencies, a policy that makes little sense so long as this country wants and, yes, needs (that pesky current account deficit, again) Japan and China to keep buying dollars/dollar-denominated securities.

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