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Old July 3rd, 2016, 03:32 AM   #1
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compare Tariffs and Import Certificates

Import Certificates Vs. Tariffs:

I’m a proponent of USA could adopt an Import Tariff policy as described in the Wikipedia article entitled “Import Certificates”.
Refer to:

The subject of tariffs often arises within discussions of Import Certificates.

Comparisons between tariffs and import certificate policies:

Both tariffs and import certificate proposals would require importers of goods surrender something’s of value to the U.S. government before their goods are enabled to enter the USA and the policies can be drafted in a manner to be self-funded; (i.e. all direct costs due to the trade policy be eventually passed onto final USA purchasers of imported goods.
The values of what importers are surrendering (and thus the additional expense to the importers) are proportionally related to approximate values of their shipments being brought into the USA.
In both cases the net differences between goods costs to importers and their USA domestic market prices motivate the importation of goods into the USA; (availability is reflected within those market prices).

The nature of the Import Certificate policy significantly reduces (if not entirely eliminates) USA’s trade deficit of goods REGARDLESS of how small are the additions to prices paid by USA purchasers of imported goods. Only if tariffs were set to drastically increase prices of imports sold to USA purchasers, could we reasonably hope (but cannot assure) that USA’s trade deficits of goods could be reduced to similar extents as that due to an Import Certificate policy.

Rather than the proposed USA adoption of the transferable Import Certificates policy for USA’s global trade of goods, our existing trade practices and all other proposed USA trade policies are more rather than less subject to mischief upon our economy. Within the certificate policy, (with no additional pro-action by our federal government, USA’s economy would suffer less mischief perpetrated upon our global trade.

Effects upon prices of imported goods within USA’s domestic markets within an Import policy (rather than a tariff policy) are much more market and less government driven.
Also due to market forces an Import Certificate policy serves as an indirect but somewhat effective subsidy of USA’s exported goods.

Respectfully, Supposn
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