... The main rule of economics is scarcity. It is impossible for us alone to make as much stuff as we would if we were also trading with someone else.
DRZ400, the unilateral Import Certificate policy cannot and would not prevent importing of goods but it does not gladly tolerate its nation suffer annual trade deficits of goods.
[Due to excluding values of specifically listed scarce or precious mineral materials integral to globally traded goods, it’s conceivable that the policy may not ENTIRELY eliminate USA’s annual trade deficits of goods but it’s likely to effectively do so].
Consider goods that USA now does not produce because the production and shipping costs of similar foreign goods is marginally less. If due to Import Certificates the prices of those imported goods would be greater than the costs of producing similar goods in the USA, those goods will eventually be produced in the USA.
Additionally, since Import certificate policy serves as an indirect but effective subsidy of USA exports, USA producers of those same goods may also be able to compete in the global market places.
How much of a marginal difference in proportion to the goods entire costs?
The minimum global market value of transferable import Certificates would be due to the assessment fees that exporters of USA goods elect to pay in order to acquire the valuable transferable Import Certificates. The fees are by law set, monitored and annually reviewed to defray all direct federal expenses due to this trade policy.
Beyond that minimum value, the global market rates of transferable Import Certificates are market determined. The maximum market price of Import certificates will be reached when USA purchasers balk upon paying an additional round of increases for imported goods.
Exporters of USA goods that agreed to pay the federal fees received transferable Import Certificates of “face values” equal to the assessed values of their shipments. Other than those face values, all other information regarding a certificate, (e.g. types of goods, date of assessment, destination of shipment) are similar to the serial numbers upon currencies that function only to prevent counterfeiting or other frauds. Since there’s no other differences between certificates, the expense rates for importing T-shirts, or Rolls Royces or medicines are the same per dollar values of imports. The federal government would not favor or disfavor any particular global goods.
Refer to
http://www.debatepolitics.com/econo...-tariffs-and-import-certificate-policies.html
Respectfully, Supposn