

Replace NAFTA, and the Trans-Pacific Partnership, with Ethical Tariffs


Replace NAFTA, and the Trans-Pacific Partnership, with Ethical Tariffs
The Issue
Trade bills (such as NAFTA, present, and TPP, future) speak in romantic, internationalist terms, of the nonselective lowering, across the board, of trade tariffs; they speak of this under the pretext that such measures exist for the benefit of... I'll quote the Office of the United States Representative, "The TPP eliminates or reduces tariff and non-tariff barriers across substantially all trade in goods and services and covers the full spectrum of trade, including goods and services trade and investment, so as to create new opportunities and benefits for our businesses, workers, and consumers."
What that, however, is sugarcoated-code for, more precisely, is that the nonselective lowering of trade tariffs has the cold effect of disincentivizing that corporations "stay put," and not relocate the manufacturing of their goods to whichever nations allow for the lowest minimum labor standards and lowest minimum wages. Essentially, and obviously, when it becomes less expensive to move products to-fro (via tariffs reduced or removed, equally, across many nations), that then motivates corporations to relocate production to those few nations where the labor is the absolute cheapest and cruelest, from where the corporation can then ship the product to any shore while incurring reduced or removed penalty, through the lowered tariffs; which in turn, promotes the steepening dichotomy between two kinds of states; consumer states (visualize example-states such as the U.S., and the U.K., where the labor standards, while imperfect, are relatively high), and producer states (visualize example-states as Mexico, Romania, and Indonesia, where minimum labor standards are low, low, low).
The PROBLEM, is that the paradigm for recent global trade agreements creates a reality to which corporations react with a mentality of "Let's increase profits by shifting our manufacturing to where minimum labor standards and wages are the lowest."
The SOLUTION, is a paradigm shift; a new breed of trade agreement that economically incentivizes that corporations produce their goods in locations with humane labor standards and living-wage pay; and economically incentivizes that hosting governments create/nurture those conditions for corporations to exist within.
Let's call this solving concept "Ethical Tariffs." It's the proposal of a trade pact featuring the largest number of participating nations that would be achievable. Ideally, each participating nation would agree to levy trade tariffs based on a sliding scale in which the tariff being applied would be commensurate with a grade assigned the exporting nation's labor conditions, minimum rate of pay, and general human rights record. With the grade to be assigned, presumably, by an independent governing body agreed upon/created by the participating nations.
Were an agreement such as this to be entered into by a large enough number of nations, it would provide nations an economic incentive to ensure fair and humane treatment of their citizens, generally, and of its workers, in particular. (Economic peer pressure, to put it crudely.) Nations with poor records in these areas would find it difficult to bring their goods to foreign markets, because of their low "grade" and resultingly high tariffs on their goods; while the nations with excellent records in these areas would find it easy to bring their goods to foreign markets, because of their high "grade" and low (or even nonexistent) tariffs on their goods.
Already, nations have their credit rated by credit-rating agencies; and receive a grade that is heeded, and responded to, by their fellow nations; because money is just that important. The leap in awareness, here, need only be that governments should agree to have rated, and co-heeded by one another, the standards they provide for their labor force; because, theoretically, people are just that important.
We all know what a credit rating is, and how apparently essential it is; well, "Ethical Tariffs" would behave as a labor rating, and be at least equally essential.
Corporations, meanwhile, would organically tend to reward nations that secure high minimum standards for their labor force (and wider human rights for their wider citizenry). This reward would occur when corporations seek cheap or free exportation of their product by purposefully locating their manufacturing within the borders of the nations with the lowest (or nonexistent) tariffs levied against them, due to their high labor standards. What might even occur, could be a race, of sorts, between nations; a race to treat workers humanely. Planet earth has hosted many an arms race... maybe someday its first human-rights race.
Admittedly, this is a preposterously, far-fetchedly idealistic notion.
Just keep it in mind... for the distant future.

The Issue
Trade bills (such as NAFTA, present, and TPP, future) speak in romantic, internationalist terms, of the nonselective lowering, across the board, of trade tariffs; they speak of this under the pretext that such measures exist for the benefit of... I'll quote the Office of the United States Representative, "The TPP eliminates or reduces tariff and non-tariff barriers across substantially all trade in goods and services and covers the full spectrum of trade, including goods and services trade and investment, so as to create new opportunities and benefits for our businesses, workers, and consumers."
What that, however, is sugarcoated-code for, more precisely, is that the nonselective lowering of trade tariffs has the cold effect of disincentivizing that corporations "stay put," and not relocate the manufacturing of their goods to whichever nations allow for the lowest minimum labor standards and lowest minimum wages. Essentially, and obviously, when it becomes less expensive to move products to-fro (via tariffs reduced or removed, equally, across many nations), that then motivates corporations to relocate production to those few nations where the labor is the absolute cheapest and cruelest, from where the corporation can then ship the product to any shore while incurring reduced or removed penalty, through the lowered tariffs; which in turn, promotes the steepening dichotomy between two kinds of states; consumer states (visualize example-states such as the U.S., and the U.K., where the labor standards, while imperfect, are relatively high), and producer states (visualize example-states as Mexico, Romania, and Indonesia, where minimum labor standards are low, low, low).
The PROBLEM, is that the paradigm for recent global trade agreements creates a reality to which corporations react with a mentality of "Let's increase profits by shifting our manufacturing to where minimum labor standards and wages are the lowest."
The SOLUTION, is a paradigm shift; a new breed of trade agreement that economically incentivizes that corporations produce their goods in locations with humane labor standards and living-wage pay; and economically incentivizes that hosting governments create/nurture those conditions for corporations to exist within.
Let's call this solving concept "Ethical Tariffs." It's the proposal of a trade pact featuring the largest number of participating nations that would be achievable. Ideally, each participating nation would agree to levy trade tariffs based on a sliding scale in which the tariff being applied would be commensurate with a grade assigned the exporting nation's labor conditions, minimum rate of pay, and general human rights record. With the grade to be assigned, presumably, by an independent governing body agreed upon/created by the participating nations.
Were an agreement such as this to be entered into by a large enough number of nations, it would provide nations an economic incentive to ensure fair and humane treatment of their citizens, generally, and of its workers, in particular. (Economic peer pressure, to put it crudely.) Nations with poor records in these areas would find it difficult to bring their goods to foreign markets, because of their low "grade" and resultingly high tariffs on their goods; while the nations with excellent records in these areas would find it easy to bring their goods to foreign markets, because of their high "grade" and low (or even nonexistent) tariffs on their goods.
Already, nations have their credit rated by credit-rating agencies; and receive a grade that is heeded, and responded to, by their fellow nations; because money is just that important. The leap in awareness, here, need only be that governments should agree to have rated, and co-heeded by one another, the standards they provide for their labor force; because, theoretically, people are just that important.
We all know what a credit rating is, and how apparently essential it is; well, "Ethical Tariffs" would behave as a labor rating, and be at least equally essential.
Corporations, meanwhile, would organically tend to reward nations that secure high minimum standards for their labor force (and wider human rights for their wider citizenry). This reward would occur when corporations seek cheap or free exportation of their product by purposefully locating their manufacturing within the borders of the nations with the lowest (or nonexistent) tariffs levied against them, due to their high labor standards. What might even occur, could be a race, of sorts, between nations; a race to treat workers humanely. Planet earth has hosted many an arms race... maybe someday its first human-rights race.
Admittedly, this is a preposterously, far-fetchedly idealistic notion.
Just keep it in mind... for the distant future.

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Petition created on December 18, 2015