The change in administration in the United States carries to an extent, changes in foreign policy. Central to President Donald Trump’s policy on trade is his protectionist approach aimed at reducing the country’s involvement in trade agencies. The protectionist approach involves strengthening of American interests by restricting trade policies and introducing new policies that influence international relations. This paper analyzes an article by Lee Jiyeun on the influence of the trade policy on overlooking America’s export of services.
The administration in its complaints and justification for the trade policy, centers on the country having a trade deficit of 248 billion dollars. The amount indicates surplus in exports of services such as education, financial services, and software, (Lee, 2017). The services help govern operations in various parts of the world with the software sector presenting tremendous gains for the country. Part of the policy campaign involves the return of manufacturing jobs to the United States. This follows the perception of unfair trade deals and encouraging American companies to make products locally. As Lee (2017), points out the America first policy on trade undercuts the growing appetite for other nations to use goods and services provided by the country. This is true as placing barriers on trade affects the exportation process and impairs trade. Software companies such as Apple and Microsoft provide their services on a large scale to individuals in numerous countries using their products. Placing such restrictions on services affects the global operations of the country.
Delegate your assignment to our experts and they will do the rest.
During President Trump’s campaign trail, he advocated for the withdrawal of the US from the Trans Pacific Partnership and NAFTA if they do not provide favorable agreements. According to Lee (2017), the withdrawal from the TPP is a mistake. This is follows that the Trans Pacific Partnership presented numerous benefits in terms of exports and strengthening the Silicon Valley. Trade agencies play an important role in facilitating trade by bridging gaps in trade barriers and making goods and services accessible to individuals. Lee (2017) points out a statement by Steve Bannon who asserted that the withdrawal marks one of the most pivotal moments in American history. I disagree with this as the decision presents long term challenges for the administration in encouraging favorable trade. One of the challenges in the increased uncertainty among U.S. allies about the reliability of the country across a range of issues following that the country advocated for the agreement during Obama’s administration, (Solis, 2017). This also presents challenges to trade policy, as there is not a clear-cut manner of managing negotiations with trade agencies and allies.
According to the White House (2017), as part of strengthening its position, the United States plans on cracking down nations that go against trade agreements. From an international relations perspective, this weakens the nature of diplomacy and causes countries to distrust each other. The ripple effect of this is the inability to formulate favorable trade agreements that contribute towards the growth of the economy. In this age of globalization, free markets significantly contribute to the growth of the economy. With the introduction of such barriers on trade, the economy is likely to collapse. The United States boasts in being a country that encourages economic growth. However, the recent actions by the administrationcreate doubt in strengthening the economy. The negotiation of the trade deals is part of an attempt to give Americans more opportunities.
The policy draws its strength from bringing back the manufacturing industry. Lee (2017), in his article highlights that bringing back manufacturing jobs is not as simple as it seems. The manufacturing industry relies on collaboration with other countries to get the best source of goods. As a country, America often outsources manufacturing to other countries or gets machinery from countries specialized in producing them. With the manufacturing industry plying an important role in exportation of goods, placing barriers on manufacturing only impairs the process as opposed to improving it. Within the industry, there is sophistication of the supply chains. One of the factors responsible for this is the labor force as it is difficult to create labor forces that can replicate specific skills.
As Lee’s article postulates, the policy is faulty, as it does not take into account the role of the country in the exportation and importation of goods and services. In this case, it is safe to argue that the administration operates on a superiority complex, fuelled by the idea that it can independently manage its manufacturing and the various trade agreements. As a developed country, widely acclaimed for its economic growth, the trade policy places the country at a detrimental position especially in its relations to its allies. By making ‘America First’, allies receive the notion that their interests and partnerships are void which presents significant weaknesses in managing relations between countries.
International relations are important as it shapes the face of politics and presents numerous effects to the economy and relationships among partner countries. Countries need to work together towards strengthening economies, encouraging peace, and strengthening globalization. Globalization relies on the interworking of various countries through favorable trade agreements that increase the pace towards making the world a better place.
References
Lee, Jiyeun. (2017). Trump’s ‘America First’ trade policy overlooks America’s export of services. Insurance Journal Web Retrieved from http://www.insurancejournal.com/news/national/2017/03/02/443389.htm on 30 Sep 2017
Solis, Mireya. (2017). Trump withdrawing from the Trans-Pacific Partnership Web Retrieved from https://www.brookings.edu/blog/unpacked/2017/03/24/trump-withdrawing-from-the-trans-pacific-partnership/ on 30 Sep 2017
The White House. (2017). America’s First Foreign Policy Web Retrieved from https://www.whitehouse.gov/america-first-foreign-policy on 30 Sep 2017
