Via Politico Pro
Trade experts and economists have criticized Republican presidential front-runner Donald Trump’s proposals to force Apple and other U.S. companies to bring manufacturing jobs back from China, saying that such a move would raise costs for consumers, force companies to reorganize their supply chains and harm prospects for trade liberalization.
USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan spoke with Politico about how Trump’s plans are similar to the forced localization policies that many countries adopted after the financial crisis, with negative effects on global trade:
Trump’s proposal also smacks of “forced localization” policies that the United States is currently fighting around the world, where governments use the power of public procurement to require goods to be made domestically to qualify for contracts, said Rob Mulligan, a senior vice president at the U.S. Council for International Business.
If all countries started requiring their companies to bring manufacturing jobs back home, “it’s going to raise the cost for everybody,” Mulligan said.
Read the full Politico Pro article. (Paywall)