Warren Buffett on Trade Policy and Import Certificates

BECKY QUICK: This first question comes from Bill Mitchell. I received more questions about this than any other question.

He writes, "Warren, in a 2003 Fortune article you argued for import certificates to limit trade deficits and said these import certificates basically amounted to a tariff. But recently, you called tariffs an act of economic war.

"Has your view on trade barriers changed? Or do you see import certificates as somehow distinct from tariffs?"

WARREN BUFFETT: Yeah, well, the import certificates were distinct, but their goal is to balance imports against exports. And so that the trade deficit would not grow in an enormous way.

In fact, it would've — and it had various other provisions in it to help third world countries — at that time, as they were called — to perhaps catch up a little bit.

And they had a variety of aspects to them. But basically, they were designed to balance trade.

And I think you can make some very good arguments for the fact that balanced trade is good for the world. And the more balanced trade there is, the better.

It will continue to be better for cocoa to be raised in Ghana, and coffee in Colombia, and a few things...

We should be looking to trade with the rest of the world, and we should do what we do best, and they should do what they do best...

Trade should not be a weapon.

And the United States — the United States — we've won. I mean, we have become an incredibly important country, starting from nothing 250 years ago. There's nothing that's been anything like it.

And it's a big mistake, in my view, when you have seven and a half billion people that don't like you very well, and you've got 300 million that are crowing in some way about how well they've done.

And I don't think it's right, and I don't think it's wise.

I do think that the more — the more prosperous the rest of the world becomes — it won't be at our expense — the more prosperous we'll become and will then — the safer we'll feel, and your children will feel someday. So that's — (Applause)