Free Trade

The new free-trade agreements passed by Congress on Oct. 13 are with South Korea, Colombia and Panama. This supposedly going to generate $13 billion from exports (Yay for money!).

However, as I believe most people have seen the movie "Roger and Me," free trade definitely comes with some losses. So do you think the potential risks worthy these gains? The Democrats seem to think that Congress should not open up the free trade while Republicans are obviously on the opposite end of the spectrum.

Here's an informative, albeit long, video that explains trade quite well, but for specific information on free trade skip to the 5 minute mark. I recommend that you watch the whole thing as it is a fairly extensive topic but the video is easy to understand (also helped by the accents of the narrator and the scholars).

One little tidbit that I found particularly interesting was from Los Angeles Times, that "Though Americans generally indicate they support trade, many blame free-trade agreements for the continued decline of U.S. manufacturing and halting progress on environmental and human rights goals, polls show." I don't know about you, but it seems very American-esque to want all the benefits and none of the side-effects. Sure there will be structural unemployment from outsourcing, but think about all of the positive benefits as well. What do you think? Should we continue with free trade agreements?

The Old Man and the Fee

On April 7, Somalian pirates once again attempted to hijack a ship on it's normal route so they could hold the crew for ransom. The only difference from previous hijackings, is that this ship was being run by an American crew. This is the first time in a couple of centuries that pirates like this have attacked a United States' crew and cargo. The ship, the Maersk Alabama, carried food supplies and other aid like materials that were to be used to help different communities in the Kenyan port of Mombosa. However, the hijacking didn't go as planned and the American crew, along with American Naval Officers stationed near the Somalian coast, have taken back the ship and thwarted most of the pirates' plans. Yet, there's a problem. Before the skirmish was over, the captain of the Maersk, Captain Richard Phillips, allowed himself to be taken by the pirates so as to save his crew. Four of the pirates took him on one of the Maersk's lifeboats and are holding him hostage until their demands are met. The United States Navy and the FBI Hostage Negotiations Unit are both working to negotiate Captain Phillips' safe return. But the pirate's are "desperate" according the the USA Today article. Desperation causes people to do stupid things and it's very likely that Captain Phillips' life is at stake. This represents the first serious, albeit small, "security risk" for the Obama administration. I'm not aware of how much power each person of the government has in these type of situations, but what should the person calling the shots do in this type of situation? If you pay the ransom, you not only let the pirates get away, but you also encourage repeat attempts because they know it pays off. If you don't pay the ransom, sure you capture the pirates and discourage future attempts, but you would be putting the good captain in serious risk and also risk the lives of the pirates themselves. The press would have a field day if they knew the US forces allowed the captain to be killed in order to not pay a ransom. How much is an American citizen worth to the the United States government? How much are pirates lives worth? I would personally try to pay the ransom (there's an interesting article on how they do that here: http://news.bbc.co.uk/2/hi/africa/7752813.stm) secure the hostage, then take the pirates before they escape...but even that's really messy and there's no telling what the pirates will do. It all comes down to how much the pirates want to survive this incident.
Also, pirate attacks have been increasing (especially off the Somalian Coast) with this being the sixth hijack attempt this week! Why is this not a major concern at things like the G20 conference when it is obviously hindering trade and travel?

Trade and War in Canada

President Barack Obama stepped cautiously in his first foreign trip Thursday, refraining from asking Canada to rethink its plans to withdraw troops from Afghanistan and saying changes to the North American Free Trade Agreement can wait.
In a news conference with Canadian Prime Minister Stephen Harper, Obama acknowledged that he has said NAFTA does too little to protect U.S. workers and the environment. Canada, the United State's largest trading partner, is leery of changes to the deal.
Robust trade helps both nations, Obama said. Noting that NAFTA has side agreements on labor and the environment, he added: "If those side agreements mean anything, then they might as well be incorporated into the main body of the agreements so that they can be effectively enforced." He said he hopes there eventually will be a way to do so "that is not disruptive to the extraordinarily important trade relationships" between the two nations.
Both leaders said that as economies around the world face challenges, it's important for the U.S. and others to resist calls for protectionism.

In Afghanistan, Canada plans to pull its 2,500 combat troops from the volatile south in 2011, following the loss of more than 100 troops killed in the country since 2001. Obama is headed the other direction, dispatching 17,000 more U.S. troops to the war zone.
Obama said Thursday he did not press Harper to reconsider. He said he praised Canada for its sacrifices and for making Afghanistan its largest recipient of foreign aid.
Turning to U.S.-Canada border security and the fight against terrorism, Harper said any threat to the United States is a threat to his country, too.
The prime minister said Canada has made "significant investments" in security and in border protection since the Sept. 11, 2001, terrorist attacks against the United States.
But he said there's a "real challenge" in increasing border security in a way that doesn't limit commerce and social interaction.
Obama said he believes the ties between Canada and the United States will grow even stronger over the next four years. The men took questions from two Canadian reporters and two U.S. reporters in a room adorned with numerous flags of the two nations.
Obama later made a surprise visit to a downtown market in Ottawa leaving fellow customers stunned.