IPFS News Link • Free Trade
True Free Trade vs. 'Free Trade Deals':
• cobdencentre.org by Vishal WildeOne of the most frustrating aspect of those trade negotiations that are sold as 'Free Trade Deals' is that they are not truly 'Free Trade' and, instead, they are just selective liberalisations that work to enrich particular interests, that increase the disparities between those who are endowed with political resources and those who are not, and that work to foster global, systemic trade imbalances (whether that be frustrating, persistent trade deficits or gross trade surpluses). Of course, this leads to advocates of True Free Trade to have a bad name despite the fact that the purist position is the most morally humane and efficient means through which to alleviate global poverty, improve peoples' welfare and tackle corporatist privileges.
Free Trade, broadly speaking, in the purest sense of the term would involve a situation where there are no tariffs, subsidies, quotas and significant trade restrictions such as licensure restrictions (which all work to unduly restrict exports and imports and, thereby, impede the flow of goods, services and income globally). Such a situation would work to alleviate both domestic and global inequalities.