4 ms·
Wait what? The US runs a massive trade deficit with the world because it's extremely open about giving other countries access to its markets. The EU doesn't, in
by safety1st 4y ago
Wait what? The US runs a massive trade deficit with the world because it's extremely open about giving other countries access to its markets. The EU doesn't, in some years it actually runs a surplus. They're not ultra protectionist like China but I was certainly under the impression that they were more so than the US.
- safety1st 4y agoSee "Free Trade Rankings, 2019" here: https://www.investopedia.com/ask/answers/040115/which-countries-have-highest-tariffs.asp https://www.investopedia.com/ask/answers/040115/which-countr...
- closewith 4y agoA trade surplus is not evidence of protectionism. The most common metric to measure protectionism (in as far as it can be measured statistically) is the Weighted Mean Tariff Rate. Compare the EU at 1.48% to the US at 1.52% - the EU is slightly lower and both are among the lowest in the world, certainly of the large economies. It's literal misinformation to say that the EU is more protectionist than the US. It was a Trump talking point, and never based in fact. EU: https://tradingeconomics.com/european-union/tariff-rate-applied-weighted-mean-all-products-percent-wb-data.html https://tradingeconomics.com/european-union/tariff-rate-appl... US: https://tradingeconomics.com/united-states/tariff-rate-applied-weighted-mean-all-products-percent-wb-data.html https://tradingeconomics.com/united-states/tariff-rate-appli...
- onepointsixC 4y agoIf Weighted Mean Tariff rates are the only measurement for trade that could be true. But it is not. You have subsidies and you have policy and regulations which can cause non market barriers to entry. Case & point: China doesn't have any tariff on American social media companies but simply bans American companies. Per your chosen measurement, that is simply not considered.