• Harry Arora

Foreign Policy: Stock market strength vindicates new tougher policy on trade...

...When the trade dispute began several months ago, many were concerned the U.S. markets and dollar would collapse. However, it appears the opposite is true. On Friday, the stock market hit record highs while the US dollar has strengthened year-to-date. At the same time, emerging market stocks and currencies have declined precipitously. One thing is clear - the stock markets have vindicated a tougher US stance on free and fair trade. Importantly, while trade makes up only a small part of our economy, it has a disproportionate economic impact on a narrow demographic – i.e. those in the manufacturing sector. Improved fair trade agreements are good for American workers, good for our markets, and also good for our trade partners. Fair trade agreements imply reciprocity in tariffs and market access, respect for intellectual property and balanced imports and exports.