Argument: Free trade is fair trade

Issue Report: Free trade


Low wage costs, access to cheap capital, educa­tion levels, and other fundamental variables all play a role in determining the comparative advantages that one country has over another in the global mar­ketplace. To “fairly” equalize those differences— provided those differences are based on a country’s economic and demographic reality—only negates or reduces a country’s ability to benefit from partic­ipating in the global trade system.
Such ‘fairness’ also prevents countries from real­izing the tangible gains from freer trade: a more competitive economic environment and better, more efficient domestic resource allocation. These positive effects drive greater long-term economic potential, create economic opportunity, better pro­mote a cleaner environment, and improve living standards at home.
Free trade allows a county to compete in the glo­bal market according to its fundamental economic strengths and to reap the productivity and efficiency gains that promote long-run wealth and prosperity. In reality, there is no distinction between free trade and truly fair trade.”