[QUOTE=Legal Tender]The USA dollar has been, and still is the safe haven currency for the world. Most commodities, such as oil (Colombia is the third or forth largest oil producer in S. America) coffee and cut flowers are all paid for in dollars. The USA is reducing the relative value of the dollar so USA produced goods will be less expensive and thus create a greater demand. While the cost of Colombian pussy is greater with a weak dollar, USA manufactured goods are less expensive for Colombians. Only good energy![/QUOTE]Legal Tender,
True, the US intentionally weakens the dollar but how can this create "greater" demand for US products in Colombia when the Colombian imposes tariffs on American made/produced products?
A few examples:
* Colombian flowers – a major Colombian export – may enter the American market without paying any tariffs at all, but USA.made fertilizer, used to help the flowers grow, is assessed a 15-percent tariff when exported to Colombia.
* Colombian carrots imported to the United States market face no tariff, but a tractor made with USA parts by USA union labor is subject to a 10-percent tariff when sold to the Colombian carrot farmers.
* Colombian bananas face no tariffs in the United States, but a USA.grown apple is subject to a 15-percent tariff when sold in Colombia.
* I Personally used to see electronics in the malls in Colombia at twice the amount as what the cost was in the USA. Now grant it that was back in 2005 and I didn't know which products were from the USA Currently the prices have dropped significantly but still are more expensive to buy in Colombia.
Etc, etc. But hopefully one gets the picture.
How is this fair trade?
At the same time:
Colombia is now the biggest recipient of USA aid outside of the Middle East and Afghanistan.
USA foreign aid to Colombia totals about $750 million a year.
Since 2000, USA aid to Colombia has totaled over $6 billion.
Hey look, all I was trying to say is that I hoped our elected officials would be instrumental in us mongers getting more pesos for our dollar.
Cheers,
Cubanut
