How Bush's Berlin Ambassador Pick Profited from Protective Tariffs

[Kellanved]

Washington's choice for future US ambassador to Germany has all the makings of a political bombshell. For years, a company owned by the multimillionaire and newly-appointed diplomat William Timken, Jr. has been profiting from anticompetitive tariffs -- at the direct expense of German companies.

As Washington's new ambassador to Germany, William Timken, Jr. will face, among other things, the task of patching up damaged relations between the two countries. But there's one small problem with this picture. The multimillionaire who US President George W. Bush nominated to the position two weeks ago also happens to be Chairman of the Board of Directors of The Timken Company, an Ohio-based firm that claims to be the biggest manufacturer of roller bearings in the world. And ever since the 66-year-old Timken, a major donor to the Republican Party and decorated with the honorary title of "Super Ranger," (reserved for those who contribute more than $200,000) has been slated to take over the position in Berlin, his company's questionable business practices have suddenly become taboo among German politicians and industry lobbyists.

Here are some good examples: Last Tuesday, the usually outspoken Bavarian Minister of Economic Affairs Otto Wiesheu said he was not the right person to talk to about the Timken Company. On Wednesday, Randolf Rodenstock, the head of the Bavarian Business Association, also declined to comment on the matter. Even Germany's federal Minister of Economics and Labor, Social Democrat Wolfgang Clement, has opted to discreetly downplay the issue.

In other words, no one wants to talk about the fact that the Bavarian roller bearing industry is suffering because it's being forced to pay protective tariffs for products it exports to the United States as a result of charges of price dumping. To make matters worse, the Bush administration is funnelling the proceeds directly to the Bavarians' US competitors, primarily Timken. In response to a complaint filed by the European Union and other states in January 2003, the World Trade Organization, or WTO, ruled that this practice is clearly illegal. Yet, no one dares speak out against it -- or against America's newest ambassador.
...

http://service.spiegel.de/cache/international/spiegel/0,1518,367881,00.html

[Karenina]

1. This appointment is SOP

Just another "FUCK YOU!" Did you hear about all the venture capital Carlyle is "investing" here?

[LiviaOlivia]

2. Bush's ambassador pick for the Netherlands is another corrupt cronie

Charlie Kupchan: Mixed Signals on the Direction of Foreign Policy
August 02, 2005


Although Bolton's recess appointment is the talk of the town, let's not overlook another choice appointment. Last Thursday, Bush nominated Roland Arnall to be the U.S. Ambassador to the Netherlands. The same day, Ameriquest Capital Corp., of which Arnall is the chairman and sole owner, announced that it had set aside $325 million for potential settlements with 30 states whose regulatory agencies or attorneys general are investigating its lending practices.

Ameriquest, a mortgage company which lends primarily to homeowners with bad credit, has been accused of predatory lending practices. According to the Washington Post, the company "is facing complaints of wrongdoing from coast to coast, with thousands of customers seeking restitution." Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights in Santa Monica, CA, complained that Arnall's "companies have engaged in unfair and deceptive practices too many times to count." "These executives should be headed to the pen, not some diplomat's mansion."

No one will be surprised to know that Arnall and his wife are top Republican donors.

~snip~

link:
The Washington Note

[idlisambar]

3. So?

not that big a deal, lots of folks benefit from protective tariffs.

[Kellanved]

4. how many of them use those profits to buy a position as Ambassador?

I'm just sayin'

[idlisambar]

5. I see your point

I'm only saying that the point is not that his company's health was assisted by tariffs, but that he used his personal profits from the arrangement to buy his way into a cushy position. It is the buying of favors that is the main issue, and yet this is pretty standard practice unfortunately.