Blame the foreigners. That is a time-tested
political tactic in America, and this year is no exception. With the
job outlook uncertain, protectionist winds are blowing. President Bush
last week blasted European subsidies for Airbus, which has replaced
Boeing as No. 1 in commercial jets. Sen. John Kerry has focused more of
his fire on "Benedict Arnold CEOs," executives who send American jobs
overseas. Those campaign positions both reflect and obscure a reality
that neither candidate shows much sign of addressing seriously, the
large American trade deficit. In going after Europe, Bush may be on to
something. The United States' trade position with Europe has
deteriorated almost as much as its position with China since the elder
George Bush was in the White House. But no one claims cheap labor is
Europe's secret. In 1992, the United States had a trade surplus of
almost $9 billion with the 15 countries that formed the European Union
until it expanded earlier this year, and a deficit of $18.3 billion
with China. The latest figures, for the 12 months through June, show a
deficit of $99.8 billion with the EU 15 and $138.7 billion with
China. [more ]
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