POLI 330N Week 6 Assignment: Current Event – Free and Fair Trade or Budgetary Issue

Student Name

Chamberlain University

POLI-330: Political Science

Prof. Name:

Date

Free and Fair Trade

Free and fair trade are vital mechanisms for fostering sustainable and equitable trade relationships between countries. However, these mechanisms are often disrupted by trade wars and hostilities between trading partners, leading to issues such as increased costs, strained diplomatic ties, labor disputes, and broader economic challenges. This analysis reviews a recent article focusing on free and fair trade between two nations, examines the key trading issues involved, evaluates their impact on the global community, and assesses the credibility of the source.

Article Overview

Key Points	Details
Selected Article	“Whisky Redemption: Biden Administration Lifts Hated Tariffs on Scotland’s Most Famous Export”
Focus of the Article	The article explores a trade war and Airbus subsidy dispute while addressing the effects of free and fair trade on global commerce.
Trade Dynamics Highlighted	It illustrates the long-standing trade conflict between the United States and the European Union, specifically the economic impact on unrelated industries.

The article chosen, written by Croft (2021), discusses a 17-year trade dispute involving claims of illegal subsidies for Airbus and Boeing by the United States and European Union, respectively. The resolution involved suspending tariffs, particularly on goods like single-malt whisky, as part of an effort to restore trade relationships and reduce economic tension.

Summary of the Article

Timeline	Key Events
2004 Dispute Begins	U.S. accuses the EU of providing illegal subsidies to Airbus, leading to significant punitive tariffs on both sides.
Imposed Tariffs	The U.S. imposed $7.6 billion in tariffs, targeting goods like whisky, cheese, and wine, while the EU levied $4 billion in duties.
Efforts to Resolve	U.K., post-Brexit, suspended retaliatory tariffs, prompting the U.S. to follow suit and restore healthier trade relations.

The dispute extended beyond aerospace-related issues, significantly affecting unrelated goods and industries. Products such as Scottish whisky, French wine, and Italian cheese saw price increases, disrupting trade and business globally. The Biden administration’s suspension of tariffs marked a key step toward resolving the trade conflict and promoting fair trade practices.

Analysis of the Issue

Perspective	Details
Economic Impact	The trade war raised prices, reduced trade, and caused slower economic growth, affecting industries globally.
Global Significance	The tariffs disrupted supply chains and created economic strain, especially during the COVID-19 pandemic.
Long-Standing Conflict	The dispute highlights challenges in balancing national interests with global trade norms.

The trade war between the U.S. and the EU had widespread repercussions, extending far beyond the aerospace sector. For example, U.S. consumers faced higher costs on imported goods, while European farmers and producers encountered reduced access to U.S. markets. These effects underlined the need for equitable resolutions to trade disputes for sustainable economic growth.

Importance to the Global Community

The conflict between the U.S. and the EU highlights the far-reaching consequences of trade wars on global commerce. The imposition of tariffs on unrelated goods like olives and whiskey caused disruptions in supply chains, impacting producers and consumers worldwide. The broader economic strain exacerbated the challenges posed by the COVID-19 pandemic, further emphasizing the need for harmonious trade practices.

Both regions are pivotal to the global market, and their disputes have cascading effects on international trade. With global economies already strained, resolving these disputes not only supports economic recovery but also strengthens diplomatic ties. The suspension of tariffs marks a critical step in restoring balance and fostering sustainable trade practices.

Credibility of the Source

Criteria	Assessment
Reputation	Published by Fortune, a globally recognized media outlet focusing on business and economic issues.
Neutral Perspective	Offers factual reporting with direct quotes from stakeholders, ensuring an unbiased and comprehensive analysis.
Reliability	The article draws from credible sources, making it trustworthy for understanding complex trade issues.

The article provides a clear and detailed examination of the issue without unnecessary bias. Fortune’s longstanding reputation for quality reporting further supports the credibility of the source.

Personal Opinion

In my opinion, the suspension of tariffs was a crucial and timely decision, especially in the context of economic recovery post-COVID-19. By fostering improved trade relations, this move benefits businesses and consumers alike through reduced costs and enhanced market access. Furthermore, removing tariffs aligns with ethical trade practices, potentially preventing exploitative measures such as underpaying workers. Overall, the resolution of the trade conflict contributes to global economic stability and long-term prosperity.

References

Bie, P. (2021). Global trade war: Impact on the economy and business. World Economic Forum.

Croft, J. (2021). Whisky redemption: Biden administration lifts hated tariffs on Scotland’s most famous export. Fortune.