Simon Lester examines some recent remarks that raises specific concerns about the WTO: Mitt Romney on the WTO (International Economic Law and Policy Blog, Dec 3). Lester focuses on Romney's specific policy proposals.
Romney prefaced his comments on the WTO with the following more general statement:
And the other [based on the question, the "other" thing is a key to innovation - Ben] is keeping our markets open. That's something which a lot of people fear, but if we are vigilant in protecting a level playing field, we not only can compete with the rest of the world, we have to compete with the rest of the world. The option of saying, "We can't compete, we're too expensive, so let's put up protective barriers," that would virtually assure that we go the way of the Soviet Union, that we get outcompeted by other people and become a second-tier economy. And if we became a second-tier economy, we would become a second-tier military. You really have no choice but to compete with the world.
In the quote in Lester's post Romney refers to his proposal for a "Reagan Zone of Economic Freedom." He described this in late October as a proposal create a large FTA out of our various bilateral FTAs and to work with the other members as a bloc within the WTO:
Starting with a core of U.S. free trade agreement partners, Governor Romney would seek to bring together nations committed to open markets and playing by the rules in the largest ever Free Trade Area, and go beyond traditional trade to promote high standards in areas critical to U.S. competitiveness. The Reagan Zone Of Economic Freedom would act as an alliance working together internally, in the World Trade organization and elsewhere to push reforms and work cooperatively in areas like labor and the environment. Governor Romney would seek to expand these efforts to include the European Union and other nations that agree to meet these standards, while challenging China and others advancing agreements that exclude America.
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