No such thing as a "free trade agreement."
Tyler Cowen points to an article on the U.S.'s tentative, so-called "free trade agreement" with Australia:
The proposed deal caps the amount of local [Australian] content at existing levels of 55 per cent on free-to-air commercial television and 25 per cent for commercial radio, and at 10 per cent on pay TV. If the government reduces these content levels, they cannot be raised again.Cowen seems to think that Australia is engaging in some sort of cultural protectionism, but the language above seems to suggest (probably misleadingly) that the US may have the power to force Australian content off the air, whether Australians like it or not.The deal also prevents the government from regulating local content levels for new media without consulting the US, which can challenge any proposed changes.
Regardless, can someone remind me of what telling other countries what is to be broadcast on their TV networks has to do with establishing "free trade"?
Comments (3)
Stefan Karlsson
Actually, this agreement wont tell any Australian network to broadcast anything. What it will do is prevent (to a limited extent) the Australian government from telling the networks to only broadcast Australian shows. In other words decrease Australian trade barriers. Of course that is increased free trade.
Published: April 26, 2004 4:06 AM
J H Huebert
I guessed that must be the case, even though the article doesn't quite make it explicit.
But what if the Australian government refuses to agree to this condition? How can the US retaliate against this, except by imposing restrictions on Australian imports to the US -- that is, restricting what I can buy from Australians?
Shouldn't the US government just be concerned with unilaterally removing its own restrictions on its own citizens' freedom to trade? That should come first. Then if it can convince other countries to lower barriers to trade, that's fine too.
If I have a natural right to trade with whomever I choose, anywhere in the world, then the US government shouldn't be able to bargain part of it away in "trade agreement" negotiations.
Published: April 26, 2004 10:55 AM
Aine
I agree with J H Huebert. I should be allowed to freely trade with whomever I please, without paying import taxes, without government interference of any kind (with the possible exception of anything that could be used to make a weapon or explosive), other than that, it's none of their business what I'm buying or selling, or from/to whom. And someone, somewhere needs to step in and say "No Internet Taxes PERIOD!"
Published: April 27, 2004 12:51 AM