The Push For A Global Trade Pact

Monday, Feb. 12th, 2007, the White announced it's upcoming "push" and "demands" for a U.S. Global Trade Pact through the Doha Round and will greatly benefit China if it makes it's exchange rates more flexible. "A free and open international trade regime is vital for a stable and growing economy, both here at home and throughout the world," according to an annual report on the U.S. economy prepared by the White House Council of Economic Advisers. How true is this, and would the ultimate outcome definately be worth the United States effort? That is the major question being presented in Washington, D.C. at this time. China seems to be the opposing factor in the make-up of this issue. Their current exchange rates are fixed, and the U.S. are constanly pushing them to "loosen up their ways", so to speak, and allow the trade to take place. Not only will it benefit the U.S., President Bush assures, but China equally as well. On Capital Hill, though, is a a great deal of frustration and annoyance due to the slow, non-productive speed of China. If China were to lower their fixed-exchange rates, it would then allow significant control over domestic inflation. This trade pact brought up Doha round world talks is that if everyone is in agreeance with trade, then it can be put on a quicker track through Congress for approval, cutting the waiting time in half! So is this worthwhile for not only China to invest in, but the U.S. and other countries throughout the world as well? Here's a thought from the article to ponder on.

"Productivity growth is projected to average 2.6 percent per year during the six year span of the budget projection -- roughly equal to the average annual pace during the past decade," the report said.