Wilbur Ross Says Tariff Reciprocity Has a Logic to It

The transcript discusses the concept of a reciprocal tax, highlighting its potential benefits and challenges. It examines the imbalance in tariffs among countries and the constraints imposed by WTO rules. The discussion also covers the obsolescence of NAFTA, emphasizing the need for updates to reflect modern trade realities, including digital and financial services. The potential for revising or replacing NAFTA is considered, with references to the Trans-Pacific Partnership as a starting point for future agreements.

What is the main challenge in achieving reciprocal tax according to the first section?

• Currency manipulations

• Tariff barriers

• Imbalance in tariff rates

• Lack of free trade agreements

What is a structural issue mentioned in the second section regarding trade agreements?

• They are not recognized by the WTO

• They have been negotiated over many years

• They lack provisions for cancellation

• They are too recent to be changed

According to the second section, what can be done with trade agreements like NAFTA?

• They are permanent and cannot be changed

• They are only applicable to digital services

• They can be canceled with six months' notice

• They can only be revised by the WTO

What is one reason NAFTA is considered obsolete as mentioned in the third section?

• It was never intended to be a long-term agreement

• It includes outdated automotive parts descriptions

• It has too many digital service provisions

• It focuses too much on financial services

What aspect of modern economy is missing from NAFTA according to the third section?

• Traditional trade routes

• Manufacturing processes

• Digital and financial services

• Agricultural services