Mohamed el-Erian has had a major and extremely successful career in business. Most important for the moment, however, is that el-Erian was for five years the head of president Obama's Global Development Council. That's why his latest pronouncement on the trade negotiation tactics being followed by President Trump are so significant. Here's what el-Erian had to say about the Trump trade strategy:
First widely dismissed as an unfortunate policy pivot, more people now are beginning to wonder whether the new US approach – provided it’s not used repeatedly – could in fact serve as a beneficial disruption that helps reset international trade relationships and place them on a firmer footing. It’s a view that is underpinned by evidence (the shift from retaliation to resolution by such countries as Canada, South Korea, and Mexico) and the prospect that, due to its limited options, China will have no choice but to do the same by addressing some of its non-tariff barriers.
This is about as strong an endorsement of Trump's policies as you possibly imagine from one of Obama's chief economic advisers. Sure, el-Erian has to start by slamming it as "unfortunate" but then he takes it back. He continues by saying it shouldn't be used too much, but then he says it worked with Canada, South Korea and Mexico. He concludes by saying that that the Trump policy is almost certain to work well with China as well.
We've spent the last two years hearing from the Democrats and the media that President Trump doesn't know what he is doing when it comes to trade. That was obviously false, but for such an important Democrat economic strategist to admit that the criticism was wrong and the policy has and will continue to work well is an amazing admission.
Anyone who has paid attention to the actual facts understands that the trade negotiations have gone extremely well. President Trump hasn't gotten everything he would like, but the USA has dramatically improved its position with regard to our biggest trading partners. The days of the USA accepting agreements that put America at a disadvantage are over. It's a major change for the better, and it's hard to miss the results.
First widely dismissed as an unfortunate policy pivot, more people now are beginning to wonder whether the new US approach – provided it’s not used repeatedly – could in fact serve as a beneficial disruption that helps reset international trade relationships and place them on a firmer footing. It’s a view that is underpinned by evidence (the shift from retaliation to resolution by such countries as Canada, South Korea, and Mexico) and the prospect that, due to its limited options, China will have no choice but to do the same by addressing some of its non-tariff barriers.
This is about as strong an endorsement of Trump's policies as you possibly imagine from one of Obama's chief economic advisers. Sure, el-Erian has to start by slamming it as "unfortunate" but then he takes it back. He continues by saying it shouldn't be used too much, but then he says it worked with Canada, South Korea and Mexico. He concludes by saying that that the Trump policy is almost certain to work well with China as well.
We've spent the last two years hearing from the Democrats and the media that President Trump doesn't know what he is doing when it comes to trade. That was obviously false, but for such an important Democrat economic strategist to admit that the criticism was wrong and the policy has and will continue to work well is an amazing admission.
Anyone who has paid attention to the actual facts understands that the trade negotiations have gone extremely well. President Trump hasn't gotten everything he would like, but the USA has dramatically improved its position with regard to our biggest trading partners. The days of the USA accepting agreements that put America at a disadvantage are over. It's a major change for the better, and it's hard to miss the results.
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