Question

The United States has acted to restrict imports of certain Chinese goods, such as toys containing lead and seafood that doesn’t meet US health standards, in order to protect U.S. consumers. Some people have said this shows a double standard: If we are willing to restrict goods on these grounds, why shouldn’t we restrict imports of goods that produced with badly paid labor in Bangladesh, Laos, Vietnam and Haiti, just to name a few of such places. Evaluate why is or is not this argument valid? Provide political economy rationale for such a policy.

Answer 1

Restriction on Imports- How it Depends
US restrict the imports on Chinese products including toys, sea foods complaining about the standards they come up with. Along with analyzing the standard of commodities, the politics of the countries engaging in trade can surely matter in determining the imports from a country. US have always been considering the standard of the products they try to allocate in their market for their consumers. The relationship between US and China also has to do something with the trade practices. The quality they are concerned about the products especially with China is more a part of the political rationale US hold with them. The level of restrictions US have made with China is more evident for the statement. Thus moreover an economic concern, the political strategies also affect the decisions.
With the criticized double standard, importing good from other nations including Vietnam, Bangladesh etc. give an advantage of cheap imports with acceptable standard. Economies try to imports cheap commodities if they are up to their standard of consumption. These countries with cheap labour can export labour intense commodities to countries like US which do not pose the advantage of factor labour. Diplomatic situations and countries relationships can affect the matter. US, as an economy tries to avoid the consideration of badly paid labour on their imports. The considerations would be more political than the economic advantage they have. Political relationship between China affects more on their importance than considering the economic aspects of concern about less paid labour and etc. The import restrictions are affected not on the returns to their imports but on the rationale of politics which the country maintains with the other.