Trade Barriers With China And The United States

“Tariff” comes originally from the Arabic word ta’rifah meaning “to make known.” In a more contemporary setting ‘tariff’ is defined as “the schedule or system of duties so imposed.”("Dictionary.com," 2015, p. 1) This is often taken to be defined as a “tax that a national government places on an imported or exported good or service to encourage or discourage trade.”(Fontinelle, 2012, p. 1)

explained, in part, by the historical and political evolution of China as it emerged from

In history, We often point to the 1970s as the starting point for US-China trade, but I found that actually it can go back to the 18th century after the American Revolution. At that time, Americans got tea, silk, and porcelain was primarily through the British East India Company, but there was also a lot of smuggling going on at the same time. Anyway, it wasn't that the Americans went to China to get these goods (Christina). Later, Americans got well involved in the China trade after they beat the British in the revolution. After the war finished, the British East India Company's monopoly did not exist any more, so the Americans could go to China and they did by driving (Christina). Besides, another element that gave them the financial

This observation from Jeffery Schott of the Institute for International Economics captures the essence of the China-World Trade Organization debate in America and the world today. China’s unprecedented economic growth has put it at the forefront of the US trade agenda. America’s is the biggest economy and China’s is the most populous nation, in terms of sheer number of people. To

The United States and China share the most imbalanced bilateral trade relationship in the world. The United States imports more goods from China than it exports to a tune of $202 billion dollars each year. All told, China alone accounts for nearly 26% of the

Managing the how goods and services enter or leave this country (import/export) is an important process that allows for us to control the economic status of our nation. Sometimes imposing tariffs on the goods imported balances our labor cost, resources and government supported industry. A tariff by definition is a tax or duty to be paid on a particular class of imports or exports.

In an attempt to safeguard the economy from foreign competition, the government of a country can implement a tax or fee known as a tariff. A tariff is a simple means for governments to earn income. It is not the only way that a country can collect revenue on imports, there are other regulations, subsidies, and quotas that have an impact on trade between countries, but tariffs are the easiest to collect and have been in existence for hundreds of years. The amount of tariffs that are levied vary tremendously between countries and commodities from free trade in which there are no barriers in trade, up to protectionism where the government tries to protect its economy from foreign competition. The tariff can be implemented by a specific tariff amount that is charged for each single item that is imported, or as a percentage of the value of the item known as a valorem tariff or both can be implemented simultaneously. A Harmonized Tariff Schedule is used in the United States that lays out the tariff that is to be collected on each good or service that is imported. (Suranovic, 2012, pp 11-12)

To start off, the multilateral trade agreement is the commerce treaties done between three or more countries and it is basically what decrease tariffs on trade, which leads to exporting and importing easier for businesses. Nonetheless, the bilateral trade agreement is also the commerce treaties but between two countries which the main purpose of it is to give the countries expanded access in each other’s countries in order to accelerate the economic growth of both agreement participants. Both types of trade agreements basically benefit participants by increasing their trade. However, there are benefits for both types. Multilateral agreements develop international standards, establish the efficiency advantages of a broader market, and give the countries the chance to negotiate and discuss trade deals with more than one country at a time. Bilateral agreements also have benefits due to the easier communication and negotiation between the two countries, it leads to faster and effective trade benefits.

Some major trade policies have negatively impacted the trade patterns of the two countries in a way that in spite of their growing ties, the bilateral trade relationship is often laden with complexities. According to U.S., China’s unfinished

The following paper coherently illustrates the trade patterns of USA and China and describes the various trade policies developed over the past years that have impacted the respective economies of both countries alongside the effect of the same on the bilateral trade relations between the two. Based upon the previous statistics, US-China trade is considerably one of the largest trading partners in today’s economies. Both countries’ trade relations entail exchange of investment, services as well as goods varying from agricultural products to non-agricultural products. Currently, China is the second-largest trading partner, third-largest export market and the biggest source of imports for the United States. The U.S.

This paper will discuss the benefits United States (U.S) had by engaging in international trade agreements and how governmental influences benefitted trade. To regulate international trade between nations, international trade agreements exist. These agreements involve regulating imports, exports and international trade of some specialty goods. The United States have been involved in many international trade agreements including free trade agreements. Free trade Agreements (FTA) helps the United States to open up foreign markets for domestic firms. The agreements help to reduce barrier on exports, ease trading across the border, improve economic growth, increase productivity, increase employment opportunities, and boost agriculture exports. There are critical functions associated with multilateral trading systems like World Trade Organization (WTO)/General Agreement on Tariffs and Trade (GATT). Some of those critical functions are resolving disputes efficiently, create a better trading environment, and preserve peace among countries. The initial sections of this paper will discuss the benefits of international trade agreements for exports, imports, jobs, agriculture, and economy.

Trade agreements have been around for the past several centuries, and naturally, they have evolved. Earlier on, they were used exclusively as agreements between nations to reduce tariffs on each other’s products. Tariffs, however, were not the only way a nation could protect its industries. Trade agreements have evolved to address this situation, and instituted measures to disincentivize circumvention of the spirit of these agreements. Evolving still, trade agreements have now grown into massive collectives between nations that regulate more than just trade. Moreover, these agreements have become political tools to cement solidarity between nations, and are used to harmonize economic regulation on an international scale.

With a series reform policies began to take place in 1978, China started to open up its markets and to develop extensive relationships with new trading partners all around the world. China’s accession to the world Trade Organization (WTO) in 2001 has accelerated the growth of its foreign trade still further. The more China’s foreign trade activities mean more trading partners, and china had already established trading relationship with more than 200 countries and regions all around the world. At the same time, annual production volume gradually increased for all major textile product categories, and china gradually began to play an important role in international textile industry trade. The ongoing process of market opening was accompanied

The reason for choosing this article is because it discusses the relations between international business partners America & China and highlights their role as global business organzaitions. The relation between China and America is a critical issue these days for the International Chamber of Commerce or as called "World Business Organization" and members of opposing parties are fighting for their interest. This article also explains the business behaviour of these two business partners related to exports, incomes and other activities that have impacted the business environment globally.

Governments intervene in international trade through use of tariffs that are levied on both imports and exports. The government may either impose fixed tariffs that are calculated per unit of the import commodity or the ad valorem tariff that is calculated as a fixed percentage of the monetary value of the imported commodity. The government imposes high import tariffs in order to control the rate of imports by making the imports more expensive in comparison to the domestically produced substitutes. The tariffs increase the prices of goods and services thus reducing the quantity demanded (Misra and Yadav 2009). The use of tariffs is detrimental to international trade since it lowers competition and results in high prices of commodities in the markets. The tariffs discourage imports and domestic producers benefit from the higher prices and reduction in competition. The EU uses variable