American Trade Politics
This is the fourth edition of what has justly become a classic treatment of the politics of U.S. trade policy. Old chapters have been revised, and four new ones cover the decade that has elapsed since the third edition was published in 1995. Destler deftly weaves the ins and outs of Washington politics together with the strategic thrust and tactical maneuvers of successive presidents in dealing with the complexities of foreign trade. Three significant developments took place in the past decade, two in politics and one in policy. First, the business community has become much more global in its outlook and therefore less prone to seek protection or resist trade liberalization (with notable exceptions, such as in the cases of textiles, steel, sugar, and orange juice). Second, the long-standing tradition of congressional bipartisanship on trade issues, as with other aspects of foreign policy, has given way to polarization. Third, trade policy has given much more emphasis to bilateralism, as reflected in free-trade agreements with Singapore, Chile, and Australia. Destler offers constructive but also controversial suggestions for improving the formulation and execution of trade policy with bipartisan support.
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With the U.S. economy soaring, few care that immigration to the United States is at its highest absolute levels. But what happens when the economy falls back to earth? High-tech immigrant workers are already competing with Americans for jobs, while unskilled immigrant laborers are becoming a permanent underclass. High immigration is creating imbalances in education, income distribution, employment, and welfare demands -- as well as tensions between immigrants and citizens and among the federal, state, and local governments. An economic slump will mean crisis. Congress and the White House need to cut back now.
Will Russia be run by democrats or oligarchs? The signs are worrying. The West would rather not dwell on the extent to which Russia's market is dominated by robber barons and permeated by crime and corruption. Russia's democracy is weak, with unfair election campaigns, a compromised media, and few checks on the presidency. The West cannot afford to let Russia descend into chaos, which might mean losing control of Russia's arsenal of weapons of mass destruction, but its two-faced NATO expansion policy hurts the democrats' chances.
The growing economic disputes between the USA and Japan could develop into a serious political conflict. The 'Japan problem' is rooted in two fictions (1) that the Japanese state has central organs of government which bear ultimate responsibility for economic and political decision-making, whereas the Japanese system is a collection of different hierarchies without a centre (2) that Japan has a free-market capitalist economy, whereas it is actually a 'capitalist development state', characterized by a partnership between central bureaucrats and entrepreneurs. Fixed trade commitments could be part of the solution.
