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GamblersNegotiations take place everyday all across the world. Some involve large billion dollar deals; some are small, involving no money at all. Whenever two or more parties meet to try to work out a deal, all come to the table understanding their needs, wants and maybe a little strategy. Kenny Rogers did very well explaining strategy in his classic "The Gambler." Several "deals" taking place in the national political and policy scene bring to mind the lessons learned from Rogers. In Geneva, Switzerland nine days of world trade negotiations came to an uninspiring end. Emerging economies of India, China and Brazil played a strong hand during the talks, but might have played it a bit too strong. The ability to raise tariffs above yet to be agreed upon levels was the major sticking point. At the other end of the table were the U.S. and European players who had agreed to reduce subsidies in return for greater market access. After the U.S. negotiator offered to reduce trade distorting programs from $48 billion to $14.5 billion, on the condition of reduced tariffs from others, the end zone seemed within reach. However, India and China continued to hold on to their calls for flexibility in setting their tariff rates even higher. The talks ended with parties walking away unsatisfied and ready to return to their home bases. Several commodity groups and a few elected officials expressed disappointment in the U.S. team's offer to cut domestic programs so drastically. However, a collective sigh of relief could be heard throughout the Potomac when the talks broke down and the U.S. hadn't agreed to the higher tariffs and knew "when to hold 'em." Back on the mainland, another group of negotiators needs to heed the advice of the other half of that famed country-western song. Congressional Democrats are holding on to the only cards they have left to play in the energy debate, and they aren't aces. Republicans in both chambers want to offer amendments to an energy bill that takes a broad and comprehensive approach to addressing our energy needs. In the House, they are calling for the American Energy Act to come to the floor. In the Senate, they are asking for a mere seven amendments to deal with offshore drilling, oil shale production in the west, alternative fuels development and conservation. However, Speaker Pelosi and Majority Leader Reid continue to hold them back by carefully throwing up hurdles in hopes to run out the clock. Some believe that the Democrats' strategy to leave for the August break before having to take a tough vote on energy production won't come back to bite them later, down the road. Yet, as each week passes with gas prices around $4 a gallon, small businesses closing their doors due to transportation costs, and producers struggling to fill their equipment's tanks, Senator Reid and Rep. Pelosi may learn the hard way that they should have known "when to fold 'em." 8/4/08 Date: 7/31/08 Advertisement
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