Trade Fireworks in the Aftermath of the War in Iraq

We knew it was coming--we just didn't know what specific form it would take. Anti-American sentiment in the wake of the war in Iraq, fused with the harsh winds of strained international relations, is pounding the once-ambitious global-trade agenda.

Recently, the U.S. government indicated its displeasure with Chile's anti-war stance by delaying the planned April signing ceremony of a U.S.-Chile trade agreement. Even the bright spots have clouds--U.S. trade officials say negotiations for a Central American Free Trade Agreement is on target to be wrapped up by the end of the year, but, two weeks ago, trade negotiators meeting in San Salvador were greeted by protesters shredding the American flag and waving Iraqi and Salvadoran banners

Trade is the heart and soul of our economy. The U.S. economy will suffer a huge blow if we are unable to get international trade activities in motion quickly. These disruptions should be calculated as part of the costs of the War in Iraq. This price tag could make the Iraq rebuilding costs look like chump change.

Business supply chains are already being impacted by broken links in our world trade system. Consumers will suffer higher prices if we are forced to reply on strictly domestic producers. These impacts will weaken both the productive and consumption sides of the economy.

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