“The Will to Act Drives Corporate
Disconnect With Washington”
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In today’s complicated global economy, business needs strong,
functioning gov’t that can effectively address numerous important
issues
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Fiscal and health-care policy
Pension policy
Trade and currency policies
Intellectual-property rights protection
If Washington can’t effectively address these issues, business and
economy will likely suffer
Business increasingly frustrated with focus on politics rather than
policy
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“National politicians act as if their job is to get nothing done. Instead, they
spend their days trying to score debating points for the next election” (Alan
Murray, asst mng editor)
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Source: Wall Street Journal, 1/18/06
Figure 8.1
Types of regulation and regulatory agencies
THE WORLD TRADE ORGANIZATION
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WTO imposed penalties 11/26/04 on U.S. exports ranging from
apples to textiles, escalating trade dispute Bush administration has
struggled to defuse by unsuccessfully urging Congress to repeal
legislation aimed at protecting American steelmakers
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EU joined in complaint by Brazil, Canada, Mexico, South Korea, Japan,
India, and Chile
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Source: Associated Press, 11/27/04
“U.S. Risks EU Tariffs Over Tax Rule”
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U.S. exporters to EU could be forced to pay hundreds of millions of dollars in
punitive tariffs after WTO appeals panel ruled a U.S. tax break (on export
income) illegal
 Benefits companies such as Caterpillar, Microsoft, Boeing
 Punitive tariffs would hit hardest U.S. exports of grain, iron, steel, electrical
machinery, textiles, fruit, footwear, and cosmetics
Decision comes at delicate time in U.S.-EU trade relations
 Each blaming other for stalemate in global trade talks (Doha Round)
 Last week, WTO ruled EU had violated trade rules btwn 1998 and 2004 by
refusing to approve new types of genetically modified organisms for sale
 EU and U.S. also in initial stages of dispute over state subsidies given to
Boeing and Airbus
WTO ruled Foreign Sales Corporation law illegal in 2000, Extraterritorial
Income Act illegal in 2002, and now American Jobs Creation Act in 2006
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Source: Wall Street Journal, 2/14/06