Activities

1. Reading the United States Tariff Schedule

c) Products Eligible for Special Tariff Treatment. (i) Programs under which special tariff treatment may be provided, and the corresponding symbols for such programs as they are indicated in the "Special" subcolumn, are as follows: Generalized System of Preferences Automotive Products Trade Act Agreement on Trade in Civil Aircraft North American Free Trade Agreement:     Goods of Canada, under the terms of     general note 12 to this schedule. Goods of Mexico, under the terms of     general note 12 to this schedule African Growth and Opportunity Act Caribbean Basin Economic Recovery Act United States-Israel Free Trade Area Andean Trade Preference Act or Andean Trade Promotion and Drug Eradication Act   United States-Jordan Free Trade Area     Implementation Act Agreement on Trade in Pharmaceutical Products Uruguay Round Concessions on Intermediate     Chemicals for Dyes United States-Caribbean Basin     Trade Partnership Act A, A* or A+ B C CA MX D E or E* IL J, J* or J+ JO K L R (ii) Articles which are eligible for the special tariff treatment provided for in general notes 4 through 14 and which are subject to temporary modification under any provision of subchapters I, II and VII of chapter 99 shall be subject, for the period indicated in the "Effective Period" column in chapter 99, to rates of duty as follows: (A) if a rate of duty for which the article may be eligible is set forth in the "Special" subcolumn in chapter 99 followed by one or more symbols described above, such rate shall apply in lieu of the rate followed by the corresponding symbol(s) set forth for such article in the "Special" subcolumn in chapters 1 to 98; or (B) if "No change" appears in the "Special" subcolumn in chapter 99 and subdivision (c)(ii)(A) above does not apply, the rate of duty in the "General" subcolumn in chapter 99 or the applicable rate(s) of duty set forth in the "Special" subcolumn in chapters 1 to 98, whichever is lower, shall apply....

If you are still awake, please answer the following questions.

1. Who "acted" to create the "Acts" listed above?
2. Based on this list, name six influential special interest groups.
3. What are some ways in which US tariff policy imposes costs on consumers?
4. What do you suppose the United States got in return for considerations under the Andead Trade Preference Act?
5. The tariff schedule frequently imposes higher tariffs on processed or manufactured goods than on raw materials. How does that fit with protectionist policy?

2. What is Globalization?

In the nineteenth century, technology and business organizations in the United States created continental corporations that outgrew the ability of state governments to regulate their markets. Fortunately, the political struggle over rules for the new continental marketplace could take place safely within the context of a democratic U.S. constitution. Over time, the power of corporate capital was balanced by protections for small business, labor, and the environment. The result was a sustained, broadly-shared prosperity.

The global economy has no such constitution. Instead, its promoters insist that it be ruled by "free trade." This is disingenuous. If the WTO or NAFTA agreements were free trade contracts, they could have been written on one page calling for elimination or reductions in tariffs and quotas. But they contain hundreds of pages protecting the property of global investors and supporting policies that undercut social standards. Add IMF conditionality which reduces the power of labor and democratic decision-making, and a global economic regime is created which runs roughshod over ordinary people in both developing and developed nations. And the regime is clearly trying to extend its reach. Last year, the outgoing director-general of the WTO was explicit: "We are no longer writing the rules of interaction among separate national economies. We are writing the constitution of a single global economy."

...If those who manage the global institutions of the twenty-first century do not want international politics to turn into a global version of late nineteenth-century class conflict, they will have to find better answers to the tough questions which have been posed.

Please answer the following questions.

1. How is modern-day "globalization" analogous to the rising power of nineteenth-century "robber barons"?
2. According to the author, why are NAFTA and GATT not really free trade agreements?
3. "IMF conditionality" refers to conditions imposed on indebted developing countries in order to get debt relief. How does international indebtedness contribute to growing inequality?
4. What does the author imply is needed to balance the growing power of international business?
5. Whose responsibility do you think it is to deal with these issues?

3. Researching a Historic Event

When the World Trade Organization met in Seattle in November, 1999, many thousands of protesters were there to disrupt them, voicing grievances on many issues dealing with international trade and corporate privilege. Using resources in your library and, if possible, on the Internet, write a news story about the Seattle protests. The photo above can represent an illustration for your news story.