‘Free Trade’ is neither free nor is it a trade.
November 18, 2011
For hundreds of years, nations have traded with other countries based on political relations. Protections or tariffs were imposed on imports from nations depending on how well the trading nations were relating. I believe this is a natural state of affairs which the world will ultimately slip back toward. Nations SHOULD compete on many levels in order to achieve acceptance within certain affiliations.
GATT, the general agreement on tariffs and trade has usurped the ability of nations to set requirements on their trade partners. This has forced nations with higher living standards to compete with nations who have low living standards. Nations want their citizens to be employed and so a trading environment has been set up where environmental protections, product safety rules and local market opportunities are on the ebb.
It may be that these agreements were allowed because the US negotiated bulk purchase of Treasury bonds along with perks such as ‘most favored nation’ status for nations such as China. So far, that monetary policy has disastrous endgames if that is what is in play.