Implications of non-American trading blocks

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India and China boost relations. The Indian and Chinese prime ministers sign nine agreements to improve ties between the two Asian rivals. [BBC News | Front Page | UK Edition]

David Remer of PoliWatch.Org Comments:

This story, joined with recent stories of the EU constitution draft, and less recent stories of easing of tensions and development of agreements between China and Russia, combine to support the evidence that 1) America's trade position in the world will never be the same again, and 2) the first steps toward a global economic unity forged by 3 major trading blocks are taking place. The European Union (EU), The Asian Trading block and the North & South American Trading block are rapidly changing the face of our economic globe, and thus, will unavoidably change the face of the political globe.

India and China represent one third of the world's entire population. After decades of cold shoulders, the meetings and agreements just signed between these two countries will have economic and political repercussions throughout the world. The article hyperlinked above states:

"The nine agreements were signed after Mr Vajpayee held talks with his host, Chinese Prime Minister Wen Jiabao.

The agreements include:

Increasing co-operation in science, technology, commerce and education

Easing visa rules

Setting up joint infrastructure development projects, focussing on water and energy resources

Establishing cultural centres in each others' countries

The implications of these agreements for America are both positive and negative.

On the positive side, as these trading blocks are formed and the economic bonds that tie them strengthen, political strife throughout the world will lessen easing the need for America to play global supercop and reducing the threat of nuclear confrontations.

On the downside, such economic coalitions will have the strength and internal resources to permit standing up to America's economic might and dictating terms, as we have seen with the EU's refusal to accept American surplus genetically modified foods. Also, for decades, America's diminishing educational output has been compensated by imported brain power from countries like India. As the economic infrastructure and consumer demand grow in non-American trading blocks, their will be less incentive for the very bright and well educated in those trading block countries to want to emigrate. The U.S. should prepare now to make major investments in its educational output in order to compensate. That however, does not seem to be happening, in fact, quite the opposite seems to be true.

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This page contains a single entry by David R. Remer published on June 23, 2003 6:22 AM.

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