When National Security Chokes Global Trade
When National Security Chokes Global Trade
Since the September 11th attacks, the United States has instituted a great number of new policies as attempts to increase national security. While some of these policies are good for protecting the US, other countries have become worried about the effect on global trade. The World Trade Organization has urged the US to be careful so that security-related policies do not become trade barriers unnecessarily.
Countries have been complaining that the measures implemented are excessive. China, Thailand, Pakistan, Japan, and others are concerned with things such as risking spoiled shipments due to delays, or strains on countries unable to afford to install new or better facilities at their ports. These side-effects, and others of various security policies, are causing significant costs of trade. Economists suggest that every day's delay add 1% to the retail cost of merchandise. The new policies for regulating financial transactions are also increasing costs.
Security measures have distorted the patterns of global trade. Developing countries are paying much more to supply good and raw materials due to the time delays. Developed countries are suffering because visa restrictions prevent access to their services. The main countries targeted by the measures are around the Middle East and Asia.
The security measures implemented by the US will continually affect global trade, particularly developing countries. Those that export significantly to the US are only the first to feel the effects. These effects will spread to other countries, who will in turn adopt similar policies. However, since national solutions tend to compound the problem, some other method must be found.
Since the September 11th attacks, the United States has instituted a great number of new policies as attempts to increase national security. While some of these policies are good for protecting the US, other countries have become worried about the effect on global trade. The World Trade Organization has urged the US to be careful so that security-related policies do not become trade barriers unnecessarily.
Countries have been complaining that the measures implemented are excessive. China, Thailand, Pakistan, Japan, and others are concerned with things such as risking spoiled shipments due to delays, or strains on countries unable to afford to install new or better facilities at their ports. These side-effects, and others of various security policies, are causing significant costs of trade. Economists suggest that every day's delay add 1% to the retail cost of merchandise. The new policies for regulating financial transactions are also increasing costs.
Security measures have distorted the patterns of global trade. Developing countries are paying much more to supply good and raw materials due to the time delays. Developed countries are suffering because visa restrictions prevent access to their services. The main countries targeted by the measures are around the Middle East and Asia.
The security measures implemented by the US will continually affect global trade, particularly developing countries. Those that export significantly to the US are only the first to feel the effects. These effects will spread to other countries, who will in turn adopt similar policies. However, since national solutions tend to compound the problem, some other method must be found.
3 Comments:
At 11:30 AM, skeeter said…
I believe that keeping national security at its highest is a must for the U.S. Because of the 9/11 attack, and all the other terrorist threats the U.S. gets, we have to keep our country as safe and protected as possible. You can never be too safe now days. Personally, I think that security could be a little stricter. Yes, in a situation such as an airport, it takes forever to get through security, but I had rather leave home an hour early, stand in line an hour, and know that when I get on that plane, I will not have to worry about someone trying to blow it up. As far as the U.S. trading, it needs to also be as safe as possible. If trading security at costal ports and airports slacks up, terrorist will realize that they have a better opportunity at pursuing an attack. If we can put a man on the moon, the U.S. and other countries can figure a way to extend the freshness and spoiling rates of food that is imported. I would gladly pay an extra dollar for a bag of rice that came from overseas if I knew the boat, plane or truck carring it was thoroughly checked by security officers.
At 8:54 PM, Stalin said…
Well I don´t know what to say about this. Security is very expensive when trying to protect such a big country as the U.S. Instead of throwing all of that money into security, why not instead try to change the foreign policy. After World War 2 The U.S was adored all over the world, except in the eastern block. This has changed over the last 3 decades, know the admiration towards the U.S has declined dramatically because of it´s foreign policy. Everyone knows that the 2 most hated men in the U.S today are Osama Bin Laden and Saddam Hussein, and I totaly agree that they are mad men. But lets not forget that the U.s supported both of these men 20 years ago. So if a change in foreing policy accured you will be able to spend your dollar on something more fun, sleep an extra hour before leaving to the airport and still not have to be worried about terrorist attacks!!
At 8:24 PM, KVerble said…
I think that keeping national security at a high rate will be better for the US in the long run, even if it does cost a little extra. It's not much different that paying to have a security system installed in your home...it costs you to install it, but it saves you money in the long run, along with providing you with extra peace of mind.
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