PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Keating in The Washington Times: China, Tariffs and Small Business

By at 30 October, 2018, 4:16 pm

In an October 30 Op-ed in The Washington Times, SBE Council chief economist Ray Keating reviews the dominant role played by U.S. entrepreneurs and small businesses in trade with China. He notes that the economy has benefitted tremendously from a range of tax and regulatory initiatives implemented by Congress and President Trump, but tariffs undermine those benefits and “work against enhanced growth and opportunity.”

Keating recognizes the big problems regarding IP theft by the Chinese but urges the Administration to deal with those shortcomings with a trade agreements.  As he notes in the piece:

“In testimony earlier this year before the U.S. House Committee on Small Business, I pointed out: ‘Rather than raising costs to trade with China, the best path forward would be to enter into serious discussions that lay the groundwork for a China-U.S. free trade agreement. Through that process, the U.S. would be able to constructively advance the cause for open markets and property rights in China. And a free trade accord between the world’s two largest economies would considerably expand opportunities for entrepreneurs, small businesses and workers in both nations.’”

Finally, Keating notes the good news on the trade agreements announced by the Administration with Japan, Great Britain and the EU.  He writes:

“The United States re-engaging as a global leader of free trade would boost U.S. economic growth for the long term and boost entrepreneurship, which has been lagging. Advancing free trade is the approach the United States needs to pursue with China as well.”

Read the full Op-ed here.

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