Alternative To Free Trade Agreements

But this short-term strategy should not prevent us from more directly limiting the trade powers and interventions of our own governments. No one would argue for Western governments to negotiate individual freedom with communist countries: “If you do not release your subjects, we will enslave ours in the same way… But isn`t that exactly what constitutes the negotiations on free trade in the economic field? Consider the alternative of unilateral free trade. Most nations are now members of the multilateral trade agreements of the World Trade Organization. Free trade was best illustrated by Britain`s unilateral attitude, which reduced rules and tariffs on imports and exports from the mid-19th century to the 1920s. [5] An alternative approach of creating free trade zones between groups of countries of mutual agreement, such as those in the European Economic Area and the open markets of Mercosur, creates a protectionist barrier between this free trade area and the rest of the world. Most governments continue to follow certain protectionist measures to promote local employment, such as tariffs on imports or export subsidies. Governments can also restrict free trade in order to limit exports of natural resources. Other barriers to trade are import quotas, taxes and non-tariff barriers, such as legislation.B. Many opponents of globalization oppose free trade, based on their assertion that free trade agreements generally do not increase the economic freedom of the poor or working class and often impoverish them. Some opponents of free trade support free trade theory, but oppose free trade agreements as applied.

Some opponents of NAFTA see the agreement as a significant prejudice to the people in the public domain, but some arguments are in fact opposed to the specifics of state-run trade and not to free trade itself. For example, it is argued that it would be wrong to leave subsidized U.S. corn in Mexico under NAFTA at prices well below production costs (dumping), as they have a ruinous effect on Mexican farmers. Indeed, such subsidies run counter to the theory of free trade, so that this argument does not run counter to the principle of free trade, but to its selective implementation. [Citation required] Protective measures. Even in the absence of allegations of unfair trade practices, and notwithstanding other GATT articles, Article XIX authorizes a country to adopt emergency measures or “protection measures” against imported products that “seriously injure or threaten domestic producers”. Safeguards may include tariffs, quantitative restrictions or other measures. From 1950 to the end of 1988, 134 measures of Article XIX were taken; By mid-1987, 26 of these measures were still in effect. Sven W.

Arndt (Ph.D., University of California, Berkeley) is Charles M. Stone Professor of Currency, Credit and Commerce at Claremont McKenna College (CMC). He is an associate professor at Claremont Graduate University. He was Director of the Lowe Institute of Political Economy at the CMC. He has worked at the University of California, Los Angeles and Santa Cruz. He was a visiting professor at Stanford University; the campus of the Johns Hopkins University School of Advanced International Studies in Bologna, Italy; Institute of Graduate Studies in Vienna, Austria; the universities of Constance and Mannheim in Germany; university of China, Hong Kong.