Free trade

batThis trade deal with Mexico will boost jobs and bring new opportunities to hard-working people. –Rep. Tom Reed

There is a difference between free trade agreements and bilateral trade deals: the former benefit the economy while the later pick winners and losers among competing special interests. Today the US pressures Canada to balance their interest in protecting Canadian dairy producers against their interest in protecting their automobile industry. Whichever choice they make, consumers in the United States and Canada will see price increases. Trade deals pick winners and losers.

General agreements to remove trade barriers are different from trade deals. Removing barriers to free trade, leaves economic decisions to the free market. Economic theory predicts that this will maximize efficiency to the benefit of all, produces and consumers alike.

As author Tyler Cowen notes in the article referenced, bullying other countries with economic pressure may produce short term gains at the expense of long term loss of collegiality. We may pay a price for bullying when we seek our neighbors cooperation.

https://www.bloomberg.com/view/articles/2018-08-28/trump-s-nafta-deal-isn-t-worth-the-price

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About whungerford

* Contributor at NewNY23rd.com where we discuss the politics, economics, and events of the New New York 23rd Congressional District (Allegany, Cattaraugus, Chautauqua, Chemung, (Eastern) Ontario, Schuyler, Seneca, Steuben,Tioga, Tompkins, and Yates Counties) Please visit and comment on whatever strikes your fancy.
This entry was posted in Reed's Views, trade, Trump and tagged , , . Bookmark the permalink.

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