The Malloch Plan: A Trade WIN-WIN-WIN
The Malloch Plan: A Trade WIN-WIN-WIN
Rarely does the possibility in politics or economic policy line up to produce — a win for all.
Winning at slots supposedly has about a 97.5 chance of losing—in other words, the house or casino usually keeps your money.
At this moment however in the world of international slots or trade, there is an unusual and highly probable chance to beat the house and the odds – to pull off an uncanny: WIN-WIN-WIN.
Here is what I am now referring to from now on as, “The Malloch Plan.”
President Trump has been called a protectionist and a gambler when it comes to the US, if not the world economy, due to his imposition of tariffs and playing hardball when it comes to our various trading adversaries.
Yet Trump has said, “”No tariffs, no barriers, that’s the way it should be — and no subsidies.” He actually said exactly this at the G7 press conference. That’s the one where he was accused of not playing by the rules. As should be apparent by now, the normal rules are out the proverbial window when it comes to Trump.
But President Trump is not in reality against free trade at all. He just insists, unlike in the past that it be truly — free, fair and reciprocal.
For him it is like in the Bible instruction of Matthew, chapter 7: Do unto others, as you would have them do unto you. This was a command based on words of Jesus in the Sermon on the Mount: “All things whatsoever ye would that men should do to you, do ye even so to them.” The Mosaic Law contains a parallel commandment: “Whatever is hurtful to you, do not do to any other person.”
Let’s call it ”reciprocity”, a kind of Golden Rule even when it comes to trade. Trump’s rule.
This is fairly straight forward, even if economists and lobbyists try to muddle the waters and complicate things.
The public gets it. They innately understand the ‘common sense’ plea of businessman cum President Trump.
We exchange goods and services with other countries in an open, free, equal and most importantly, reciprocal way. This is what Trump referred to originally as, ‘The Art of the Deal.’
No one is taken advantage of. The consumers’ benefit and the companies compete to produce the best products at a profitable price, in a capitalist marketplace. In such a system there can be NO cheating, no advantages, no non-tariff barriers or no subsides. No state organizations can prop up losers and no government interventions can be used to effect outcomes. Trade is equally beneficial to every nation and to every people that plays by the rules. There can be NO exceptions, backsliding, corner cutting, dumping or cheating.
Is such a system even possible?
Trump thinks so.
He said recently in the White House, Rose Garden, ““We agreed today, first of all, to work together toward zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods,”
Here is my realistic Plan that world change the world forever and make Trump the greatest economic leader in ALL of history.
The United States and the European Union instigate immediately, not in 5 years but NOW, a completely tariff free, no subsidy, no non-tariff barrier agreement for ALL goods and services. It would be comprehensive with NO exceptions, none.
This would do away with all preferential treatments, all taxes on cars and trucks, on aluminum and steel, Jack Daniels and cheese, all unfair agricultural subsidies, ALL tariffs, the whole lot. It would equal the playing field totally and for good.
EU President Juncker came groveling to DC just a week ago begging for tariff relief and this is what should be offered. If you want it—here it is — the whole enchilada! Trump intimated such when he suggested, let’s make a real deal.
But we need to add TWO caveats to make this even more substantial, to win at international slots and hit the big jackpot.
First, we include the UK in the agreement effective NOW and to be extended after they leave the EU.
This solves the Brexit conundrum.
The UK and the EU would have a free trade agreement where the US is also a key and integral party. There is no problem on the Irish border and no protracted negotiation between divorcing parties. The US steps up in a time of need and is truly a ‘special partner’ to our cousins, the Brits. It fixes a nasty dilemma and offers a best way forward.
The EU wins, the UK wins, and the US wins. ALL winners.
Now, for the next sweetener: We also allow Canada to become part of this new free, fair, and reciprocal trade agreement.
It starts as a Canada CETA accord which was just signed but Plus, Plus, Plus. The EU and Canada have no tariffs in their free trade agreement and so would the US and the UK, as well. But now the UK gets two new free trade partners and a running start, without penalty, post-Brexit. In one swoop, the US solves its Canada problem.
All winners. Like Trump said, “You will get tired of winning so much.” But why stop there?
We could end the horrible NAFTA trade deal and negotiate a separate bilateral accord with Mexico, unless they too wanted in, too.
Why not? All they need to do is agree to the very same terms. Japan? China wouldn’t accept but the rest of the world now could line up against mercantilist Communist China.
The economies of the major players in the entire developed world would ALL benefit, trade would grow exponentially, and economies would prosper. No losers, all gainers. Peace and prosperity spreading across the entire world.
At no time in the history of the long post WW II period have the slots lined up so perfectly. At no time have we had a genius dealmaker like Donald J. Trump in the drivers seat. He can do it. Just do it.
He could tell the EU’s Juncker, the UK’s May, and Canada’s Trudeau—this is the way it is going down. Take it or leave it. Sign here!
This would set his legacy in stone to the detriment of all his silly detractors and Trump deniers and to the mainstream media haters. The stock market would hit all time highs.
Trump could take a bow for without him none of this would have been possible.
Announce the Plan. Execute the Plan.
All it takes is leadership.
I see 77777 coming up!