Un-Equal Treaties

(Un-Equal Treaties)

The so-called Un-equal Treaties were a series of "Agreements" that over a period of about a hundred years, where Western Powers imposed terms on Asian nations, especially China. The Qing Dynasty, China's last imperial authority, had been weakened over the Nineteenth Century with internal revolts, like the Taiping rebellion that killed twenty million Chinese. Nations like Britain, France, the U.S. and others, exploited the situation. Then Secretary of State, John Hay for then President William McKinley and then Thedore Roosevelt, crafted the "Open Door" Treaty where all claimants to China would abide by a no one nation would seek to monopolize their Sino positions.


The 25% tariffs that President Trump has imposed on Canada and Mexico could be seen as un-equal treaties in their own right. The American economy is orders of magnitude larger than that of Canada and Mexico combined. Another 10% is being levied at China. However, this is less about exploiting prostate peoples in Asia and more a response by the United States to stop being exploited in its own right from Ottawa and Mexico City.


Free trade can be a good thing. However, there is no such occurrence of absolutely free trade. Each country has its own nascent industries and an accompanying workforce.  Those citizens need "protection" but that does not mean a closure to trade. What President Trump is advocating is as much free trade as possible or, as he is putting it, fair trade. As long as Canada and Mexico fail to meet that threshold, the levies will remain.


Equalizing an imbalance could take months. Fortunately, however a framework is already in place, the previously negotiated USMCA. That pact had been concluded in the last Trump Administration and now that fentanyl is a pressing issue. If the President sees progress in that regard perhaps, he might relent.


A tariff is a tool to be used sparingly, however. It is not something to be applied on a whim and not something that could lead to an escalation or a trade war. It can be used as a bluff and President Trump knows that his bluff won't be called. Canada and Mexico need the U.S. more than the U.S. would need them. The measurers might be un-equal but when one had all the cards, play them.

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