Word: zoellick
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...trade war, but the brief era of post-Sept. 11 togetherness is now officially over. The Americans are serene about this. "The Europeans will scream," a Bush administration official told TIME last week. "But coming from them, it's a little hard to take." As U.S. Trade Representative Robert Zoellick, heretofore regarded as one of the Bush team's great internationalists, pointed out, the Europeans subsidized their steel industry to the tune of $50 billion over the past 30 years...
...defending the administration’s decision, U.S. Trade Representative Robert B. Zoellick said, “The global steel industry has been rife with government intervention, subsidies and protection,” and explained that the American response served to counter the protectionism of other governments. In order to equalize trade opportunities, the administration should not raise America’s trade barriers, but rather continue to break down the barriers of other countries. American tariffs will only lead to retaliatory tariffs, which will weaken the international free market economy and possibly lead to a trade...
...Remind the rest of the world it's a temporary plan. Send U.S. trade rep Robert Zoellick door-to-door to Europe, Russia, China and the Pacific Rim, pointing up the three-year term of the program, the review planned for the 18-month mark - and the fact that the tariffs decline each year over the life of the plan. Tell the EU to go ahead and take their beef to the WTO if they want - even the smallest cases take a year and enforcing them takes two - and to be patient...
...exemptions as an incentive to the victims. Have Zoellick remind complaining nations that he and Bush are still for free trade in the long term, despite the administration's pressing domestic political concerns. And tell them what they can do to soften Bush's heart...
...Make sure he gets paid. Zoellick, embarrassed enough, didn't get specific Tuesday about how the decision helped Bush "manage the home front," but everybody knew what he was talking about. The White House can now go to the steel unions and rust-belt congressmen Bush just bailed out and present the bill: Passage of fast track...