Interesting Word of the Day: Carousel

For the first couple of months of my stint on the CEA staff back in 2000, I had to cover trade issues (my designated area was international finance). One of the first words I learned walking into the EEOB/OEOB– that I hadn’t heard of in my grad school classes — was “Carousel Retaliation”.

From CRS:

Section 407 of the Trade and Development Act of 2000 (P.L. 106-200) requires the
U.S. Trade Representative (USTR) to periodically revise the list of products subject to
retaliation when another country fails to implement a World Trade Organization (WTO)
dispute decision. This periodic revision of the product list has become known as
“carousel retaliation.” The intent of switching products is to exert more pressure on a
trading partner to comply with a WTO ruling.

I thought of this on perusing the initial list of retaliatory tariffs. No need for the items tariffed to stay the same.

 

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