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The administration should indeed get tough - not by sneaking through anti-trade policies that invite retaliation - but by demanding that the WTO end the fictitious distinction between direct and indirect taxes. Also, the new White House tax-reform panel should develop a territorial, border-adjustable corporate tax just like our trading partners have.

A pro-trade, pro-American export-tax reform is the right way to encourage foreigners to “Buy American” while making U.S. companies more competitive both here and abroad.

Cesar Conda, formerly assistant for domestic policy to Vice President Dick Cheney, is an advisory board member of the International Economy magazine. Brian Reardon was special assistant for economic policy and a staff member of the National Economic Council under former President George W. Bush.