1.

Motion to set the agenda sir

2. To second the motion.
3.

Agenda- Balance of trade.

Honorable Delegates, Respected Chairs
Theres’s a very famous saying in germany, If you’re not going forward, you’re going
backward. And Trade protectionism is the way back.
Germany, the Montana-sized country of 82 million people was the world’s
#1 exporter until 2008, surpassing the United States even today and only
surpassed by China in 2009. Germany, like the U.S., is nominally a free-
trading country. However, Germany quietly follows a tradition that goes
back to the 19th-century German economist Friedrich List. a huge key to its
trading success is a vast and half-hidden thicket of de facto non-tariff trade
barriers. Germany’s covert trade barriers—should perhaps better be called
“trade balancing measures,” as it would be a mistake to confuse them with
crude protectionism — that begins with careful control over Germany’s
currency.

Another key policy: Germany does not use the credit system to subsidize
short-term consumption as the U.S. does. For example, Germany has
remarkably few credit cards per person. This tends to direct lendable
money into investment, not consumption. This tends to favor balanced
trade because investment strengthens industrial competitiveness, while
consuming more than one produces necessarily means sourcing from
abroad.

Honourable delegates of the house we need to come to concensus to solve

this issue and prevent trade war.

Germany wishes to be a country that lends its contribution in the future to solve
the problems of the world together, we think that shutting ourselves off and
isolating ourselves will not lead us into a good future. Protectionism is not the
proper answer,
 Above all, Germany has a 19 percent value-added tax (VAT) and the US
doesn’t. So American goods entering Germany pay a border-adjustment
tax, but German goods entering America don’t, a fact perfectly legal under
WTO rules.

Point of Information!
Request to follow up
1. Any Developing nation- Less globalisation is more worrysome than no
globalisation.
2. UAE- Will UN compensate for the poor.
3. India- The US president Donald Trump described India as the “the tarrif
king”. The country’s obseesion with protetcionism is resulting in the fall
in rupees. Justify!

Right to reply- on the grounds that the soverignity of Germany has been
infrinched upon.

Motion topic- to propose a unmoderated/moderated cocus topic you’re

honour. 10 mins with each sepeaker 1 minute.

DR- motion to move into an open debate to this resolution sir.

The European Union’s largest economy, whose export-oriented vigor has kept the
continent afloat for more than a decade, is cooling more rapidly than expected in which
can be seen as an early fallout from protectionist moves by the U.S. After years of robust
growth fueled by foreign demand for premium cars and engineering goods, Germany
saw its annualized growth rate roughly fall by half in the first quarter of 2018. Exports
have fallen in three of the first four months of the year, manufacturing orders are down
and sentiment indicators are in free fall.

Oliver Rakau, a Frankfurt-based economist with Oxford Economics. - “It’s clear that concerns over
protectionism and the more assertive foreign-policy stance of the U.S. have begun to have real
economic implications,
Germany is so dependent on international trade, economists argue, the protectionist war cries
coming from the White House are having a chilling effect even in the absence of a fully fledged trade
war, damping both sentiment and actual economic activity.

The global automotive industry is a highly complex network of flows of goods, and such discussions
are poison to our business.”

No other country in the world would suffer higher absolute losses from U.S. car tariffs than
Germany,” Mr. Trump’s trade rants are also making German consumers uneasy. I plead all my
fellow nations to come into a consesus to file a WTO challenge against the US protectionist
measures and plea for rebalancing duties on American exports.

Solutions:
Trade policy alone cannot ensure that the potential benefits of liberalisation are fully
realised or widely distributed. Governments should pursue broader policies that
strengthen the economy’s resilience and the workforce’s adaptability to changes
taking place in the global economy, many of which are driven by new technologies. It
can serve to lessen the disruptive impacts of change and create an environment that
spreads the benefits of globalisation more widely. They include education and training
policies that aim to build solid foundation skills and enable participation in further
training and reskilling for displaced workers; workforce policies that influence how
readily firms can adjust the size and composition of their workforce; and
macroeconomic stability.
Governments should better engage with the community around the case for free
trade, and about policies aimed at managing the costs of adjustment and ensuring the
benefits of liberalisation are shared more widely. This would help to build community
confidence in trade and foreign investment policies.
Resisting protectionism and continuing to work towards freer markets, while making
trade work for all by minimising adjustment costs and ensuring the benefits are widely
shared, is the best path forward. Higher living standards depend on it.

We think that shutting ourselves off, isolating ourselves, will not lead us into
a good future. Protectionism is not the answer,"

She also said Europe should not complain when other countries, like the
United States, overhaul their tax systems but instead respond with reforms of
its own.
Protectionism refers to government actions and policies that restrict or restrain
international trade, often with the intent of protecting local businesses and jobs
from foreign competition.

Why free trade?

1. all benefit from free trade as consumers, because without it many products would be
far more expensive. Apart from this, free trade benefits the companies and their
employees which hold a strong market position in global competition, either because
they produce very cheaply, or because they have a market niche. The losers are the
owners and employees of companies that cannot keep up in the global market.
- Clemens Fuest, President of the Ifo Institute for Economic
Research
2. Open markets are very beneficial to Germany as a competitive industrial
nation. That is why the export surpluses are often criticized. Justifiably so?
When Germany exports more than it imports, it means that other countries increase
their debt with us or that we acquire assets, such as real estate or shares in
companies. Rising debt can lead to over-indebtedness crises, less so the direct
acquisition of assets abroad. Many people abroad would like to see their companies
being utilized better and their products selling better. Whenever German products are
more successful in the markets, it can easily cause aggravation. In the long run,
German surpluses abroad can actually encourage protectionism, that’s why Germany
should lower corporate taxes, for instance, in order to boost domestic investments.

German political and business leaders reacted with alarm to the United States government’s
decision to impose tariffs on European steel and aluminum imports from midnight Thursday.
“The United States decision is fundamentally wrong and extremely dangerous. We are at
risk of a protectionist spiral,” said Joachim Pfeiffer, economic spokesperson for the Christian
Democratic Union (CDU), Angela Merkel’s center-right party. Achim Post, a spokesperson
for the center-left Social Democrats, the CDU’s coalition partner, called the US move a “body
blow for free and fair trade

Trade war

The U.S. government's latest tariff plan on Chinese imports has raised concerns of various

quarters of German society that the trade protectionist move will lead to "multiple losses."

U.S. President Donald Trump on signed a memorandum that could impose tariffs on up to

60 billion U.S. dollars of imports from China and restrictions on Chinese investment in the
United States.German Economic Minister Peter Altmaier said he also believed that free and

fair global trade is in the interest of all parties.

Through the trade war, Trump will only learn the basic common sense of foreign trade: the

high costs caused by tariffs will ultimately be paid by U.S. companies and consumers

Disadvantages

In the long term, trade protectionism weakens the industry. Without competition, companies
within the industry have no need to innovate. Eventually, the domestic product will decline in
quality and be more expensive than what foreign competitors produce.
Job outsourcing is a result of declining U.S. competitiveness. Competition has declined from
decades of the United States not investing in education. This is particularly true for high-
tech, engineering, and science. Increased trade opens new markets for businesses to sell
their products. The Peterson Institute for International Economics estimates that ending all
trade barriers would increase U.S. income by $500 billion.
Increasing U.S. protectionism will further slow economic growth. It would cause more layoffs,
not fewer. If the United States closes its borders, other countries will do the same. This could
cause layoffs among the 12 million U.S. workers who owe their jobs to exports.
List of the Cons of Protectionism
1. It often raises prices instead of lowering them.

Competition is typically what keeps prices down for consumers. When

tariffs are implemented, foreign goods cost more. Companies don’t pay for
the added taxes – the consumers do. Domestic companies often raise their
prices to match the price increase of foreign goods to boost their profits.
For consumers, even if they experience wage increases, they don’t gain
anything because those increases are wiped out by higher prices.

. It limits customer choice.

When free trade policies are allowed to flourish, consumers are presented
with a wide range of goods and services from which to choose.
Protectionism limits these choices because international goods may not be
supplied to the local market. If they are supplied, then tariffs may price
those goods or services out of the reach of the average consumer. That
means consumers must often use inferior products or have access to them
during specific time periods each year.

3. It only creates short-term gains.

When one country announces tariffs on products, this practice is quickly

followed by other nations following suit. That means the gains experienced
domestically through protectionism are short-term at-best. Many companies
may even find the cost of business to be too high for them with tariffs in
place. Jobs that rely on exports are often lost when escalating tariffs occur.
When one country closes its borders, many others follow suit.

4. It exposes educational deficiencies.

Protectionism can also limit immigration and visa approvals. When this
occur, service gaps begin the form in the economy. In the United States,
many high-skill jobs are filled by immigrants. There are domestic shortages
in the U.S. right now in several different sectors, including science and
engineering, because there aren’t enough people educated in those
disciplines locally.

5. It can lower the quality or quantity of products for consumers.

One way to get around the issue of tariffs is to change the export product or
service being provided. Offering fewer of the same product or lowering its
overall quality can keep pricing at acceptable levels for the consumer. That
means the only losers in this scenario are the consumers, who must either
make-do with fewer items or settle for an inferior product compared to what
they used to enjoy.

6. It may inspire warfare between nations.

When protectionism occurs, it is often referred to as a “trade war.” Real

wars are more likely to start because of protectionism as well because
there are fewer opportunities for different nations to help each other find
success. Countries are far less likely to go to war with one another when
their economies are dependent, in some way, on the products and services
that are provided because of free trade.