Alfonso Llanes, Political junkie
Post-election America, businesses in the world are cautious about what a President Donald Trump means for the world’s economy, especially where trade is concerned.
According to Ryan O’Regan International Trade Associate of Ireland proposals in the Speaker Ryan’s tax plan, the most relevant to trade is the institution of a “destination-basis” tax system designed to counter the effects of foreign VATs, (value added tax),which some see as discriminating against imports and favoring exports. As such, Speaker Ryan and his party have laid out a proposal taxing imports but excluding exports, essentially imposing a VAT on products brought into the United States. While the effectiveness of such a measure (and indeed its compliance with WTO rules) is disputed, it seems likely to sail through Congress, and will have a significant impact on those EU companies doing business with the United States.”
For the agreements already in force, Trump has the authority to re-negotiate or pull out of any agreement on his own authority. NAFTA negotiators with Mexico and Canada are already preparing their talking points. Assuming that such negotiations do not result in damage to the agreement with the introduction of tariffs, the U.S.-Canada softwood dispute for one—which argues that the United States opposes imports of lumber from Canada’s federal lands for not being market priced, and tougher labor/environmental regulations for Mexico in order to increase the ability of U.S./Canada labor to compete on an even plain field. However, Trump has not indicated what he might be willing to give in exchange for concessions requests as he might just resort to economic leverage to extract favor which is one reason Trump prefers bilateral agreements opposed to multi-lateral agreements because he can exercise his economic advantage to extort what he wants fro a treaty on a one-to-one basis.
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