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American Morning

Minding Your Business: Trade Talks, Tactics

Aired November 21, 2003 - 07:49   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


SOLEDAD O'BRIEN, CNN ANCHOR: When it comes to the U.S. and global trade, right now it is not such a wonderful world.
Andy Serwer is "Minding Your Business." We're talking big protests. We're talking unpleasantness in the talks.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes. Good morning, Soledad.

You saw that footage from yesterday in Miami, not a pretty picture. Of course, everyone focusing on the war on terror that our president is waging right now. There is another war, not as deadly, but also farfetched and also changing rapidly, and that is a trade war that is brewing all across the globe on many points.

Let's break it down. Now, quickly, the difference here between -- one thing to know about a trade war, I should say, is that it's always jobs versus consumer prices. Here are some things that are going on. The U.S. and Brazil talks -- that was Miami, the free trade area of the Americas -- basically ended abruptly. Unlike Cancun, though, it wasn't a total breakdown, but they really didn't solve anything yesterday down there, you guys.

And what's going on? It has to do with goods coming into the United States. Did you know, for instance, there is a 29 cent tariff on imported orange juice coming from Brazil? What does that mean? It means we're paying more for orange juice. It also means that it's protecting jobs in Florida and Texas and places where citrus is grown.

Also, looming EU sanctions, we talked about the steel tariffs in that war that's brewing. What's going on there? It may be solved soon. The president is sort of indicating to the British prime minister that he may be taking care of that. Meanwhile, the Europeans may be slapping tariffs on goods going there.

Just crossing the tape this morning, Oslo, the Norwegians threatening us with tariffs.

And then the situation with China and the textiles we've been following the past couple of days, the Chinese threatening retaliation there. That could lead to higher clothing prices at Wal-Mart and everywhere else starting next year. So, there will really is impact -- Soledad.

O'BRIEN: Interesting to hear Greenspan weighing in on this, as well. SERWER: That's really interesting, because, you know, here is the old wise man saying basically clouds of emerging protectionism have become increasingly visible on today's horizon, and talking about the real dangers here. And, of course, it's a real political football, you guys. That's the big thing. As we head into the season towards next fall, it's going to be something, because it's, again, jobs in those key states like Florida, like those steel-producing states, Pennsylvania, Michigan and also Ohio and West Virginia.

O'BRIEN: All right, Andy, thank you very much.

SERWER: Yes.

O'BRIEN: Next time we'll take a look at the market check from yesterday. Appreciate it.

SERWER: Good deal.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.







Aired November 21, 2003 - 07:49   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: When it comes to the U.S. and global trade, right now it is not such a wonderful world.
Andy Serwer is "Minding Your Business." We're talking big protests. We're talking unpleasantness in the talks.

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes. Good morning, Soledad.

You saw that footage from yesterday in Miami, not a pretty picture. Of course, everyone focusing on the war on terror that our president is waging right now. There is another war, not as deadly, but also farfetched and also changing rapidly, and that is a trade war that is brewing all across the globe on many points.

Let's break it down. Now, quickly, the difference here between -- one thing to know about a trade war, I should say, is that it's always jobs versus consumer prices. Here are some things that are going on. The U.S. and Brazil talks -- that was Miami, the free trade area of the Americas -- basically ended abruptly. Unlike Cancun, though, it wasn't a total breakdown, but they really didn't solve anything yesterday down there, you guys.

And what's going on? It has to do with goods coming into the United States. Did you know, for instance, there is a 29 cent tariff on imported orange juice coming from Brazil? What does that mean? It means we're paying more for orange juice. It also means that it's protecting jobs in Florida and Texas and places where citrus is grown.

Also, looming EU sanctions, we talked about the steel tariffs in that war that's brewing. What's going on there? It may be solved soon. The president is sort of indicating to the British prime minister that he may be taking care of that. Meanwhile, the Europeans may be slapping tariffs on goods going there.

Just crossing the tape this morning, Oslo, the Norwegians threatening us with tariffs.

And then the situation with China and the textiles we've been following the past couple of days, the Chinese threatening retaliation there. That could lead to higher clothing prices at Wal-Mart and everywhere else starting next year. So, there will really is impact -- Soledad.

O'BRIEN: Interesting to hear Greenspan weighing in on this, as well. SERWER: That's really interesting, because, you know, here is the old wise man saying basically clouds of emerging protectionism have become increasingly visible on today's horizon, and talking about the real dangers here. And, of course, it's a real political football, you guys. That's the big thing. As we head into the season towards next fall, it's going to be something, because it's, again, jobs in those key states like Florida, like those steel-producing states, Pennsylvania, Michigan and also Ohio and West Virginia.

O'BRIEN: All right, Andy, thank you very much.

SERWER: Yes.

O'BRIEN: Next time we'll take a look at the market check from yesterday. Appreciate it.

SERWER: Good deal.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.