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Eurosceptic Bloggers

Wednesday, May 25, 2005

Mandy’s Unwinnable War

If Mandy continues to push China over textiles, China will respond:
China says that it will scrap recently agreed plans to increase export tariffs on textiles should the EU and the United States also impose quotas on imports.
In another move that ultimately shows the stupidity of protectionism, big manufacturers are learning that China is not the only option for producing cheap textiles
Faced with a higher tax on exports following pressure from the U.S. and the European Union, large Chinese textile suppliers to Wal-Mart are relocating their manufacturing base to India.
So in place of one large incredibly cheap textile producer, we now get two. Should the EU and USA wise up to this one, expect the investments to happen elsewhere. The only thing we should not expect is that elsewhere to be the EU or USA

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