Marketplace: News Archives

Tuesday, May 6, 2003

Listen to the entire show in RealAudio Features The New Face of Free Trade - Morocco Why is the U.S. aggressively pursuing a bilateral free-trade agreement with a country that exports less than $500 million in goods to our shores? Morocco is at the doorstep of Europe and exports 70% of its products there, but it’s also a moderate Muslim country and a gateway to the Middle East. Some say the U.S. is trying to use Morocco as a success story. Others suggest there’s another motive: the U.S. is so frustrated with multilateral bodies like the UN and the WTO that it’s going it alone, forging free trade agreements one country at a time. Morocco makes a perfect free-trade partner for the U.S. -- and it’s a great way to needle the Europeans. Stephen Beard explores whether politics has kicked economics out of the driver’s seat of trade. Online Resources: www.ustr.gov: press release: “United States and Morocco Launch Free Trade Negotiations” www.washtimes.com: article: “Morocco to discuss free trade with U.S.” www.arabicnews.com: article: “Over 40 U.S. firms voice support to Morocco-U.S. FTA” news.bbc.co.uk: article: “Morocco warned over EU-U.S. trade deals” www.usembassy.ma: U.S. embassy in Morocco: history of Morocco-U.S. relations, links, etc. www.amcham-morocco.com: Morocco Chamber of Commerce www.cia.gov: CIA World Factbook 2002: Morocco

The future of U.S.-European Trade Marketplace host David Brancaccio asks The Economist magazine’s Matthew Bishop about what’s in store for free trade. Does America's willingness to act alone politically require a new approach to trade? Has the war created a mismatch between U.S. foreign policy and its economic needs that leaves us dangerously exposed? Bishop says the U.S. could do everyone a favor by lowering international trade barriers, as the world and the U.S. would be spectacularly better off. “I urge Mr. Bush to be a unilateralist and lower America’s trade barriers without waiting for anyone else to agree go along with it -- I rather fear that pigs will fly before that happens,” says Bishop. Related Media: Listen to the full Mattew Bishop interview Online Resources: www.eurunion.org: European Union in the U.S. europa.eu.int: European Union’s “Annual Report On U.S. Trade Barriers” news.bbc.co.uk: article on trade: “Which way are we facing?” news.bbc.co.uk: article: “‘Progress’ on world trade deal”

Poland’s Choice Like other former Soviet republics, Poland regards the U.S. as its liberator. Warsaw staunchly supported the U.S.-led invasion of Iraq and even provided troops. That political allegiance has produced tangible benefits, such as a multi-billion-dollar deal to buy F-16s and offset transactions worth twice that amount. But as Rafal Kiepuszewski reports, Polish companies fear politics could spoil relations with their biggest customers -- Germany and France -- and sour the country’s future in the European Union. Recently, EU leaders slammed Poland for acting against the interests of its partners while on the threshold of becoming a member. Poland hopes it can strike the right balance between the country’s Euro trading partners and its most important political ally, the U.S. Online Resources: europa.eu.int: Poland country profile on the European Union Online Web site www.cia.gov: CIA World Factbook 2002: Poland www.usinfo.pl: U.S. embassy in Poland www.pol-mission-eu.be: Mission of the Republic of Poland to the European Union www.euobserver.com: article: “Eight European leaders back U.S. on Iraq” news.ft.com: article: “Poland denies weakening EU common stance” www.praguepost.com: Poland buys F-16s from U.S.

Commentary: “A Better World Order” Commentator Saskia Sassen says don’t mourn the U.S.-European trade alliance, when the world stands to benefit from its demise. The politicization of trade could just be the kick that global trade needs to foster new alliances, and the first real growth opportunities for small countries that were, up until now, relegated to the sidelines. “The global economy will be the winner in the next few years,” says Sassen. “That’s because reconfigured blocs will reach out to smaller countries bypassed by economic globalization thus far.” The result? The growing participation of many more actors on the world’s stage. Here are Web sites Saskia Sassen recommends to get critical accounts of the current global trading system: www.developmentgap.org: The Development Group for Alternative Policies www.ifg.org: International Forum on Globalization www.wtowatch.org: WTO Watch www.fairtrade.org: Fair Trade Organisatie www.globalexchange.org: Global Exchange Saskia Sassen’s homepage at the University of Chicago: www.law.uchicago.edu

Commentary: “Reality Check” Now that the U.S. has acted unilaterally on a war with Iraq, can it call the tune on the new global trading order too? Wishful thinking, or worse, argues commentator and trade expert Robert Hormats. Why? It’s simple: America is home to 4% of the world's consumers; the rest of the world has the other 96%. “Although the United States did spectacularly well in Iraq using a small coalition, it can only build free trade and increase American exports with a much larger partnership,” says Hormats. “To win in matters of trade and commerce, America should let others be the winners too.” Here are Web sites Robert Hormats recommends to get more information on international trade and other economic issues: www.cfr.org: Council on Foreign Relations www.oecd.org: Organization for Economic Cooperation and Development’s “Trade” section www.wto.org: World Trade Organization www.ustr.gov: Office of the United States Trade Representative Robert Hormats bio on Speaker's Spotlight: www.speakers.ca/hormats.html

Also on today's show Today: Dow climbs 56.79 (+.67%); NASDAQ jumps 19.67 (+1.31%) ; S&P 500 rises 7.84 (+.85%) Kmart emerges from under Ch. 11 -- still, it’s no Wal-Mart Dems propose $152 billion “jumpstart-the-economy” plan Cable companies have a way to rein in their inflated rates: separate sports channels from basic programming