Saz wrote:Supposn wrote:Saz, how did you read and consider Wikipedia’s “Import Certificates” article?
I did not because it's apparent YOU wrote the wikipedia article. So it's not an actual source, but your opinion. And if it's your opinion, you are free to post it here and have it debated but I'm not going to click fake wikipedia pages to amuse you.
It has to be based on something. A certificate to import what? 1 item of any good? 1 dollar of any good? I assume it's a dollar amount, as an import cetificate for items would be even easier to abuse.
Nation’s median wage rates are generally improved when their currency is stronger and the IC proposal would not reduce the U.S. dollar’s value, but the proposal works to their nation’s favor regardless of their currency’s global exchange rate.
Currency devalueation is one of the best way to boost exports, because it makes your product cheaper abroad. A strong currency actually harm exporters, because it makes it cheaper to buy important. So I don't see what your import certificate will accomplish, other than encouraging firms to artificially boost their levels of export (by exporting gold or the like) in order to increase the amount that can be imported. This will not lead to a trade balance, all it will do it choke off the supply of imports and encourage firms to export items they have no comparative advantage in making.
It's not an issue with commodities, it's an issue with the imports certificate mechanism itself. The problem is that when you limit imports in such a manner, you will effectively bar certain good from coming into the US. Because you don't segment the import certificates by industry or product, certain industries or products will be able to effectivley outbid and then use all the available import certificates. Let me put it this way, if GM needs to import a critical car component, and a small business that fixed cars also needs to import the same part...who will have the advantage when it comes to buying import certificates? The large business. It works even worse across industries. What happens when Exxon, Walmart and Mcdonalds use all the import certificates to import oil, food, clothes? Well there are no import certificates left for more mundane, but equally critical imports.
Essentially, you are capping the amount of imports we can bring into the country. But you pout no other restrictions on this cap, ensuring that large producers like Walmart, or large industries like oil/gas, monopolize the import certificate market and effectively "use up" all of the import certificates. You would end up with a market where a few large producers in a few key industries are the only ones who can afford to import anything, the rest of us have to make due in a market where some can access the global supply chain, and others can't.
Excerpted from Wikipedia’s “Import Certificates” article: "Many who are aware of the ”Balanced Trade Restoration Act of 2006” text find it has faults that could have been easily corrected:
They regret that assessments would not be adjusted to exclude the value of specifically listed scarce or precious minerals integral to the goods being assessed. We should discourage the export of cast gold paper weights encrusted with gems in order to facilitate importing high-tech or labor intensive goods. This fault could severely undermine the bill’s economic benefit to our nation.
Natural gas and oil should have also been included in such a scarce or precious minerals list. The proposal itself should not favor the export or inhibit the import of such scarce minerals. (The original U.S. Senate draft temporarily (for only 5 years) excluded the entire value of goods containing petroleum)”.
yes, the issue is that it's not just oil and gas that are scare. In a free market, a central planner cannot and does not know what will be scarce tomorrow. It would be aluminum pipes, or lithium, or competent accounting services. But by creating an import certificate, and capping the amount of imports, SOMETHING will be made scare. There will be products we need/want, that are best imported, which we cannot import because of this absurd policy.
Saz, apparently you have not yet read the description of the proposed Import Certificate policy even after I posted a transcript of it upon the forum or you have no interest or comments or questions regarding the concept.
I did not fully respond to your post because much of it was not germane to Import Certificates. I believe your comments and questions would be different if you had read the concept’s description.
Regarding your last paragraph, the Import Certificate regulations do not themselves deem anything as being illegal to import into the USA.
The approximate values of specified listed mineral materials are reduced from the gross assessed value of the shipped goods; (e.g. the adjusted value of globally traded gasoline is reduced by the value of the petroleum that's integral to the gas;
[b](gasoline) - (crude oil) = the adjusted assessed value of gasoline.
The list of rare or scarce or precious minerals is determined by the U.S. Congress and is, (as most federal laws and regulations are) subject to changes by the U.S. Congress. A list of scarce minerals wouldn't be expected to change very often over the decades.
The Import Certificate regulations would not prevent or encourage USA's importing or exporting of gasoline. Carbon pollution, and conserving our own petroleum deposits are separate political issues not to be determined by Import Certificate regulations.
An import certificate's face value is the assessed value of the exported shipment of goods that initiated the certificate's issuance. The certificate does not specify the destination of the exported goods or the type of goods. Similarly Importers of goods surrender transferable Import Certificates with face values covering the value of their goods they’re importing into the USA.