Phil Goff has just delivered an excellent speech to start a year of laying out Labour Policy. $100/week tax free, stopping tax-dodging bludgers, support for R&D and exporters, correcting housing market anomalies and encouraging investment in the productive sector. There was a lot to like.
Higher commodity and food prices, we are told are a Good Thing. Our exporters (ie. Fonterra and foreign oil companies) get more money. But we consumers have to pay more to by the same products, so are we better off? And what about the poor saps overseas who are paying more for less, or the really poor saps who are priced out of the market?
It’s surreal to see people who cried that not going into Iraq has cost us a trade deal with the US, now saying that the Reconstruction Team Labour sent was to get access for our milk exports. The claim’s based on a US Embassy cable but that doesn’t make it gospel. In reality, the Right wanted us to fight in Iraq to get an FTA with the US.
Over at No Right Turn, I/S has picked up on some Aussie research that shows Free Trade Agreements aren’t the huge money spinners they’re sold as. Because FTAs create different rules for different trading partners, exporters have to meet complicated ‘rules of origin’ to prove they quality for the lower tariffs. The cost can eat up the supposed benefits.
What’s so great about free trade negotiations with Russia? We export only $180 million a year to them, most of it butter. That’s 2% of our exports to the US and Japan and Key’s made no progress on their trade barriers. Rising oil costs will soon make our butter uncompetitive vs Russian dairy farmers. Key got his photo op – but not with Obama.
One of the strange things about helping to run a left blog like this is looking at the varied opinions of those on the left of the political spectrum, and then looking at the monolithic opinions that the right seem to have of the left. I was musing on this while reading Matt McCarten’s excellent Saturday article. Now you have to understand that Matt and myself are almost at the ends of the spectrum when it comes to politics on the left….
