BY QUINN SLOBODIAN
Last month, U.S. President Donald Trump’s merchandise representative, Robert Lighthizer, sat through 2 hours of grilling yesteryear Congress, fending off grievances almost the Trump merchandise war’s effects on Alaskan salmon, Maine lobsters, in addition to Delaware chickens. “Nobody is declaring state of war on Canada,” Lighthizer protested, fifty-fifty equally he conceded that the utilization of Section 232 of the 1962 Trade Expansion Act to levy tariffs on steel in addition to aluminum was premised indirectly on assessing that dry reason equally a national safety threat. When pushed on whether he had this assessment vetted yesteryear the National Security Council, he demurred that doing thence was the Commerce Department’s responsibility, non his own. Lighthizer’s performance was consumed yesteryear such efforts to smoothen the ruffled feathers of his congressional inquisitors. Mostly, this involved assuring lawmakers that progress has been made inward negotiations amongst the EU in addition to merchandise partners such equally United Mexican States in addition to Canada, in addition to dispelling the impression that novel tariffs on PRC had “stirred upward a hornet’s nest of problems inward other parts of the reason amongst trusted allies,” equally i congressperson pose it. And yet it would live a error to attribute Lighthizer’s obsequious performance to a lack of self-confidence. The trial lawyer known for having a life-sized portrait of himself inward his dwelling has never lacked for the latter. And different most others inward the Trump administration, he has known what he wants to achieve, in addition to how, from his initiatory off solar daytime inward office.
The indications were at that topographic point inward his congressional testimony, inward the agency Lighthizer interspersed his defensive responses amongst declarations almost his ain philosophy on trade—one that he claimed to portion amongst Trump. This philosophy of Lighthizerism deserves far closer attending than it has received, eclipsed equally it has been yesteryear the approach of the managing director of Trump’s National Trade Council, Peter Navarro, which is flashier but ultimately less informed yesteryear policy experience. As a decades-long denizen of Washington, Lighthizer is to a greater extent than grounded but also less tardily to house politically. Lighthizer’s is the economical philosophy most responsible for guiding the Trump administration, in addition to he has ensured its influence for years, peradventure decades, to come.
Lighthizer’s piece of work has culminated inward the budding merchandise state of war amongst China, amongst the Trump direction poised, equally of lastly week, to heighten existing tariffs on Chinese products to 25 percent. But to telephone call back Lighthizer a “prophet of protectionism,” equally some have, gives the faux impression of an underlying drive for U.S. autarky, self-sufficiency, or withdrawal from global markets. Nothing could live farther from the truth. Lighthizer speaks openly inward favor of complimentary trade, comparative advantage, in addition to what he calls simply “economics.” “The basic philosophy that nosotros guide hold is that nosotros wish complimentary merchandise without barriers,” Lighthizer explained to Congress at the July 26 hearing. He said that the Trump direction “wants to larn to the topographic point where the U.S. is competing amongst countries on a bilateral reason in addition to on a no-barrier basis, in addition to thence allow the United States, allow pure economic science brand the decision.” (“I’ve heard of Ricardo,” Lighthizer snipped at Sen. John Kennedy (R-La.), who was straining to reassemble a parable almost English linguistic communication stuff in addition to Portuguese wine.)
Where Lighthizerism departs from criterion complimentary merchandise philosophy isn’t inward its desired goals of opened upward markets but inward its commitment to using an openly politicized arsenal of weapons for achieving them. Since the formation of the General Agreement on Tariffs in addition to Trade—the precursor to the World Trade Organization—in 1947, the dominant schoolhouse of thought on international merchandise has favored multilateralism, or agreements betwixt many nations where merchandise barriers sink collectively on the “most favored nation” principle. Lighthizerism scorns the multilateral approach inward favor of bilateralism, or deals betwixt 2 nations to lower barriers. Against the collective approach exemplified yesteryear the WTO agreement, which over 100 countries signed inward Marrakech inward 1994, he promotes a transactional i instead, proceeding bargain yesteryear bargain in addition to instance yesteryear case. “We’re non talking almost a degree playing field,” he said to Congress, “What we’re maxim to the dry reason is, ‘We’ll give yous amend access than the repose of the world, in addition to yous give us closed to an equal amount of amend access.’”
To larn to the endpoint of amend access in addition to lower barriers, Lighthizer sees niggling shame inward the utilization of unilateral action. Executive orders, diplomatic pressure, in addition to legal measures similar the above-mentioned Section 232 are legitimate tools for unsettling existing arrangements in addition to pushing partners to the negotiating table. Lighthizerism is no roadmap for retrenchment but a pattern for recapturing what is seen equally a lost border for U.S. manufacturing on the reason stage. It does non herald “the destination of globalization” but a to a greater extent than aggressive stage of it. And far from shielding producers from the dependent area of competition, Lighthizerism aims to deepen it.
We demand to “make certain that marketplace topographic point forces determine who survives in addition to who doesn’t survive,” he explained to Congress. Paradoxical equally it may seem, Lighthizerism sees merchandise wars equally the route to freer trade. Yet fifty-fifty equally the rhetoric cleaves closely to the destination goal of opened upward markets, Lighthizerism inward exercise reveals a deeper in addition to arguably to a greater extent than consequential belief—that to crunch what he calls the province capitalism of PRC inward the market, the States of America must emulate portion of the style of its adversary in addition to larn a fleck to a greater extent than province capitalist itself.
President Ronald Reagan in addition to Prime Minister Zenko Suzuki of Nihon commence talks inward the Oval Office May 7, 1981, on a gain topics, including the sensitive U. S.-Japanese merchandise relationship. (Bettmann/Getty Images)
Lighthizerism’s combination of sovereign activity in addition to complimentary merchandise principles is no novelty. Nor is it quite the paradox it powerfulness seem. One could discover its roots inward the 19th century, when armed forces expeditions opened markets for Western goods. Access to both Nihon in addition to PRC was achieved at the barrel of a cannon.
A to a greater extent than recent—and to a greater extent than direct relevant—analogue is the merchandise conflicts of the 1980s, which served equally the crucible inward which Lighthizerism was formed. Lighthizer’s career inward economical policy began during this period, when U.S. policymakers routinely complained of merchandise deficits in addition to the undercutting of U.S. manufacturing yesteryear distant competitors, in addition to figures such equally Walter Mondale predicted a nighttime time to come of Americans left entirely to “sweep upward about the Japanese computers.” H5N1 native of Ohio born inward 1947 who attended Georgetown University at the same fourth dimension equally eventual President Bill Clinton, Lighthizer served equally a original counsel for the Finance Committee nether Sen. Bob Dole showtime inward 1978 earlier existence appointed a deputy U.S. merchandise representative inward 1983, when he was inward his mid-30s. He served equally chair of the U.S.-Japan Investment Committee in addition to helped Pb negotiations over steel imports amongst Japan.
In this role, Lighthizer had a front-row topographic point for what the economist Jagdish Bhagwati calls the “aggressive unilateralism” used yesteryear the Reagan direction to fight novel competition. The feature tool of this style of governing merchandise was Section 301 of the 1974 Trade Act, which allowed the States of America to accept retaliatory activity against nations whose merchandise practices it deemed unfair or discriminatory. Rather than tariffs, the favored tool was the voluntary export restraint. While the primary targets were the rising East Asian economical powers of Japan, Taiwan, in addition to South Korea, novel special Section 301 measures introduced inward 1988 were also used to threaten developing countries amongst retaliation if they failed to honor U.S. intellectual belongings provisions. Even equally they broke amongst the (always fragile) consensus about multilateralism, such unilateral acts did serve specific U.S. interests, equally the target countries ofttimes agreed to voluntarily restrain their exports to the States of America to the payoff of local producers.
Bhagwati read President Ronald Reagan’s utilization of executive activity on merchandise equally a symptom of what he called “diminished giant syndrome,” where the States of America lashed out inward fright of its loss of industrial dominance. While he disapproved of the method, Bhagwati acknowledged that these actions ofttimes functioned inward the involvement of opening markets, because fright of existence hitting yesteryear the stick of unilateral activity compelled smaller economies to negotiate in addition to settle merchandise agreements amongst the United States. Bhagwati in addition to the economist Douglas Irwin described the approach elsewhere equally “the furnish of the reciprocitarians,” comparing it to the “fair traders” of the belatedly 19th century inward United Kingdom who also hoped to utilization merchandise deals to opened upward novel markets. Some consider the creation of the WTO itself equally the production of a negotiation inward which other nations were cowed yesteryear the threat of U.S. unilateralism.
Lighthizer returned to individual police force exercise inward 1985, in addition to it’s tardily to imagine the lessons he drew from his fourth dimension inward world office—namely, that aggressive unilateralism worked inward international economics. Nihon proved a pliant opponent—and i that, non incidentally, existed nether the safety umbrella of the United States, consummate amongst a permanent armed forces presence. Ever since, Lighthizer has worked to recode the Republican legacy on merchandise away from the model of multilateralism, which was indeed spearheaded yesteryear Democrats such equally Cordell Hull, in addition to toward the model represented yesteryear Reagan.
Along the way, Lighthizer’s ain views guide hold entirely hardened; the 1990s were an peculiarly formative influence on Lighthizerism. In the mid-1990s, Lighthizer was the main economical advisor to Bob Dole inward the run-up to his GOP presidential candidacy. Defending a challenge from their right against the staunch sovereigntist Pat Buchanan, Lighthizer in addition to Dole supported U.S. membership inward the WTO but also pushed the idea of a assort panel of U.S. judges to review adverse cases in addition to dorsum upward the threat of a U.S. difference from the organisation if it was non surgical procedure to their pleasure. After the creation of the WTO, however, Lighthizer appeared to regret his decision. In 2000, he testified earlier Congress amongst boyfriend lawyer Alan Wolff that the organization’s powerfulness overreached in addition to represented a unsafe powerfulness to trump U.S. police force spell also existence inadequate to right other nation’s “unfair trading practices.” He effectively reversed his topographic point from 1995 in addition to sided retroactively amongst Buchanan against the WTO. After Trump’s inauguration, Lighthizer became the novel U.S. merchandise representative, in addition to Wolff became a deputy director-general of the WTO itself.
While Trump’s merchandise policy is sometimes compared to that of 1930s, an era of widespread fantasies of economical autarky, it is better understood (like thence much almost the electrical flow president) equally a flashback to the 1980s. Lighthizer has been explicit almost the comparison, fifty-fifty years earlier Trump’s drive for president. In 2011, Lighthizer praised the reality television set star’s “skepticism toward pure free-trade dogma” yesteryear appealing to his old boss. “The icon of modern conservatism, Ronald Reagan,” Lighthizer noted, “imposed quotas on imported steel, protected Harley-Davidson from Japanese competition, restrained import of semiconductors in addition to automobiles, in addition to took myriad similar steps to maintain American manufacture strong.” The implication was clear: It was fourth dimension to utilization the same playbook, amongst PRC playing the role of Japan.
Robert Lighthizer speaks amongst old Sen. Bob Dole (R-Kan.) during his confirmation hearing inward the Senate Finance Committee on March 14. Lighthizer was Dole’s economical adviser during his 1996 drive for president. (Bill Clark/CQ Roll Call/Getty Images)
The electrical flow crystallization of Lighthizerism tin live seen equally an seek to restage the larn by won against Nihon in addition to lost against the WTO. Many guide hold observed correctly that U.S. discontent amongst the WTO is nix new. The Obama direction had already blocked an solar daytime of the month to the Dispute Settlement Board earlier Trump’s arrival. Voices including European Commissioner for Trade Cecilia Malmstrom in addition to the Chinese themselves grip that the WTO should live reformed to employment concern human relationship for the novel reality of Chinese economical powerfulness in addition to its eyebrow-raising tape on protecting intellectual belongings rights.
What makes Lighthizerism distinctive is the agency it frames the solution. It does non suggest a remedy, equally the Europeans, Canadians, in addition to Mexicans do, inward fine-tuning the multilateral rules. Rather, it suggests taking a page from the playbook of what it sees equally its main adversary: Chinese province capitalism.
Lighthizer has been a song critic of the conventional wisdom almost the democratizing influence of global merchandise that reigned from the mid-1990s until almost a decade ago. In a 2010 testimony earlier Congress, he singled out Francis Fukuyama’s “end of history” statement for special contempt in addition to noted that “U.S. policymakers had a profound confidence inward the ultimate triumph of commonwealth in addition to capitalism” after the Berlin Wall’s fall. “This confidence,” he said, “which tin at nowadays live seen equally hubris, encouraged many U.S. policymakers to believe that PRC would inevitably comprehend commonwealth in addition to capitalism.”
Lighthizer chided U.S. policymakers for assuming that “acceding to the WTO would get PRC to larn to a greater extent than in addition to to a greater extent than Western inward its behavior—almost equally if it were only a to a greater extent than exotic version of Canada.” The obstruction Lighthizer perceived was a cultural one. “China’s inability to comply,” he concluded, “appears to live the resultant of deep forces inward Chinese life.”
In his testimony, Lighthizer referred to a contemporary slice yesteryear political analyst Ian Bremmer on the ascent of province capitalism. In a 2009 Foreign Affairs article, Bremmer offered a shadow timeline for what has larn known equally the “rise of neoliberalism” since the 1970s. In Bremmer’s telling, the stone oil crisis early on inward that decade was a breakthrough 2nd for a vogue toward the greater influence of states amongst intimate connections to corporate interests, amongst the state-owned stone oil companies of OPEC existence the banner case. Whereas most historians would depict the decades that followed equally a menstruation when powerfulness tipped internationally from states to markets, Bremmer sees it differently. He argues that the economies such equally India, Russia, Turkey, in addition to Brazil that rose to prominence during the transformation of the global due south in addition to the post-communist reason were united yesteryear an incomplete organized faith inward the complimentary marketplace topographic point or the dominion of police force in addition to a vogue to blur province in addition to individual interests. The ascent of sovereign wealth funds inward the early on 2000s entirely deepened the fusion of world in addition to individual authority. The most of import avatar of province capitalism was China, where the Chinese Communist Party used a high degree of province ownership in addition to back upward of individual national champions to create upward a domestic marketplace topographic point to challenge traditional manufacturing superpowers.
The States of America was the positive foil for Bremmer, the putative dwelling of robust dedication to the dominion of police force in addition to a salubrious distance betwixt world in addition to corporate interests (the revolving door betwixt Wall Street in addition to Washington notwithstanding). Lighthizer appears to guide hold taken Bremmer’s analysis rattling closely to center in addition to shares his concern that province capitalism offers an unfair border inward contest amongst those unwilling to emulate it. He has made regular reference to China’s province capitalism inward his testimony earlier Congress equally U.S. merchandise representative in addition to emphasized its coherence. “They guide hold a system, in addition to their scheme is challenging our system,” he insisted inward lastly month’s testimony. In September 2017, he called Chinese province capitalism “a threat to the reason trading scheme that is unprecedented.”
The marrow of the Chinese threat is the loss of the U.S. border inward applied scientific discipline through what Lighthizer summarized inward March equally “forced applied scientific discipline transfer; of requiring licensing at less than economical value; of province capitalism, wherein they move inward in addition to purchase applied scientific discipline inward the States of America inward non-economic ways; in addition to then, finally, of cybertheft.”
To human face upward the Chinese threat, the States of America nether Lighthizer has dusted off the toolkit from the Reagan years. H5N1 Section 301 investigation initiated inward August 2017 was completed inward March of this year, paving the agency to the initiatory off circular of tariffs at 25 percentage on i laid of Chinese imports in addition to 10 percentage on another. Just lastly month, Trump asked Lighthizer to await into to a greater extent than than doubling the 10 percentage to 25 percent, a stair out that could come upward into forcefulness side yesteryear side month. The Financial Times observes that the merchandise state of war amongst PRC is “only exactly beginning.”
What is Lighthizer’s game plan? The stated intention is to “protect our technology” yesteryear using the blunt musical instrument of tariffs until the Chinese changes its ways. “We wish to larn dorsum to even,” he told Fox News Business inward June, in addition to “try to withdraw some of those structural barriers spell at the same fourth dimension opening upward China.”
If Lighthizer’s goal is to counter the long-term vision of Made inward PRC 2025 amongst a long-term innovation to maintain the U.S. border inward technology, he faces the crucial obstruction of time. This was highlighted inward the most heated telephone substitution of lastly month’s testimony, betwixt Lighthizer in addition to Democratic Sen. Brian Schatz of Hawaii, i of the youngest members of the Senate. “It seems to me we’re playing chicken amongst China,” Schatz observed, in addition to “among [America’s disadvantages] are that they accept a 50- or 100-year view. And we, because we’re a democracy, accept a ‘every 2 years’ view.” The differing fourth dimension horizon made the strategy of using tariffs to right structural merchandise imbalances futile: “Why would yous stare downwards a non-democracy?” Schatz asked, “How nosotros guide hold leverage inward a province of affairs where they guide hold unending patience in addition to nosotros guide hold almost none?”
This cutting to the center of Lighthizer’s philosophy—and it left him amongst no expert response. He conceded the indicate afterwards inward the testimony when he said that the Chinese “do accept a longer view, which yesteryear the way, I mean value is the right view. To the extent nosotros can, nosotros ought to live taking it. I realize nosotros guide hold a political scheme that makes it difficult, but nonetheless, the reality is an awful lot of our senior politicians do accept a long view.” He added, “We’re going to guide hold a employment amongst PRC that’s going to move along for years.”
Lighthizer’s mild Sinophobia manifests, equally such intercultural attitudes ofttimes do, equally a sort of PRC envy. It is entirely the apostrophized “senior politicians” (including, i presumes, Lighthizer himself) who are able to extend their fourth dimension horizon equally long equally the Chinese. Lighthizer’s answer also raised the enquiry of whether his ain philosophy is the opposite of province capitalism or a diverseness of it. Imposing tariffs yesteryear executive gild performs the rattling detour about democratic decision-making that Lighthizer sees equally the marrow of province capitalism in addition to that, though injuring U.S. interests, has brought PRC tremendous wealth.
As a philosophy of economical governance, Lighthizerism, because it is structured about the thought of interstate competition, bends toward province capitalism. It reserves for regime executives the sovereign right to determine when economical rules bind in addition to when they do not. Democratic accountability is an impediment, from this perspective: an unfair disadvantage that the adversary does non share. H5N1 cynic powerfulness discover that Lighthizer’s flaw is taking i page from the mass of province capitalism without going farther in addition to suppressing the cyclical procedure of democratic elections itself; this would solve Schatz’s “two years” employment in addition to give the tariffs fourth dimension to guide hold their effect. But at that topographic point is no sign that Lighthizer has whatsoever notion of going this far.
Even failing this lastly step, the ascent of Lighthizerism suggests a novel narrative of convergence—not to the hypothesized “end of history” that he thence scorns, inward which commonwealth in addition to capitalism are imagined to flourish together harmoniously, but rather toward a globally minded province capitalism where aspects of the democratic procedure are routinely short-circuited inward pursuit of a competitive edge. Whether this path volition live taken powerfulness depend on the side yesteryear side circular of that rattling confounding procedure of commonwealth inward America’s midterm elections.
Quinn Slobodian is the writer of Globalists: The End of Empire in addition to the Birth of Neoliberalism.
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