William Thien

Free Trade vs. Off-Shoring. They are not the same!

Posted on: July 27, 2016

A so-called conservative radio pundit recently referenced Trump’s belief that we need to scrap all of these international trade treaties such as NAFTA and TPP. The pundit suggested in his commentary that it was a bad idea to curtail international trade by ending such trade deals.

The the problem is though that the pundit mistakenly confused NAFTA and TPP as well as China’s Most Favored Nation Trading status with “off-shoring.” The aforementioned treaties are indeed trade treaties.

With respect to this observation trade or “international trade” involves the trade of products manufactured in another country and branded with the trademark or name of the company that was founded in that country.

The other type of trade, or “off-shoring” to which this observation refers, which is not really trade at all, involves a company here in The United States closing up shop and production here in The United States and off-shoring production to another country all the while stamping its name or trademark on the same products of a foreign origin and advertising at the same time that the consumer needs to “buy American.” From what I can discern, this latter example is what Trump is referencing in his commentary. Trump is referencing the sweetheart tax deals that benefit those U.S. companies involved in off-shoring American jobs and thereby putting Americans out of work and receiving a tax break at the same time.

There is a massive distinction between open trade and offering tax deals to offshore American jobs.

In my opinion, Trump has it right on this issue.

Copyright © William Thien 2016

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