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Trade and Foreign Policy

Using trade as a weapon of foreign policy has harmed America's economic interests in the world without advancing national security. The proliferation of trade sanctions in the 1990s has been accompanied by their declining effectiveness. From Cuba to Iran to Burma, sanctions have failed to achieve the goal of changing the behavior or the nature of target regimes. Sanctions have managed only to deprive American companies of investment opportunities and market share and to punish domestic consumers, while hurting the poor and most vulnerable in the target countries.

The powerful connection between economic openness and political and civil freedom provides yet another argument for pursuing an expansion of global trade. In the Middle East, China, Cuba, Central America, and other regions, free trade can buttress U.S. foreign policy by tilling foreign soil for the spread of democracy and human rights.

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Books and Book Chapters

Mad about Trade: Why Main Street America Should Embrace Globalization, by Daniel Griswold (2009).

"Trade," Chapter 59, Cato Handbook for Policymakers, 7th Edition (2009).

"Relations with Cuba," Chapter 60, Cato Handbook for Congress: Policy Recommendations for the 108th Congress (2003).

Economic Casualties: How U.S. Foreign Policy Undermines Trade, Growth, and Liberty, edited by Solveig Singleton and Daniel T. Griswold (March, 1999).

China in the New Millenium: Market Reforms and Social Development, edited by James A. Dorn (November 1998).

Cato Studies

"A Harsh Climate for Trade: How Climate Change Proposals Threaten Global Commerce," by Sallie James, Trade Policy Analysis no. 41, September 9, 2009

"Audaciously Hopeful: How President Obama Can Help Restore the Pro-Trade Consensus," by Daniel J. Ikenson and Scott Lincicome, Trade Policy Analysis no. 39, April 28, 2009

"Nothing to Fear but Fearmongers Themselves: A Look at the Sovereign Wealth Fund Debate," by Daniel J. Ikenson, Free Trade Bulletin no. 33, March 14, 2008

"Leading the Way: How U.S.Trade Policy Can Overcome Doha's Failings," by Daniel J. Ikenson, Trade Policy Analysis no. 33, June 20, 2006

"U.S.-China Relations in the Wake of CNOOC," by James A. Dorn, Policy Analysis no. 553, November 2, 2005

[View more Cato Studies]

Articles and Newsletters

"Trade and Human Rights: The Case of China," by James A. Dorn, Cato Journal, vol. 16, no. 1, Spring/Summer 1996.

"U.S. Sanctions Against Burma: A Failure on All Fronts," by Leon T. Hadar, Cato Trade Policy Analysis no. 1, March 26, 1998.

Opinion and Commentary

"Are Afghan Riches a Curse?," by Nita Ghei, Philadelphia Inquirer, June 22, 2010

"The War on Terrorism Ends; and the Winner Is... China," by Leon T. Hadar, Huffington Post, November 9, 2009

"Free Trade Is a Boon to the Environment," by Sallie James, RealClearMarkets.com, October 8, 2009

"A Defining Moment?," by Daniel J. Ikenson, Beijing Review, September 22, 2009

"The US Embargo of Cuba Is a Failure," by Daniel Griswold, Guardian (Online), June 15, 2009

[View more Opinion and Commentary]

Events

"A Harsh Climate for Trade: How Climate Change Proposals Threaten Global Commerce," September 10, 2009 [Capitol Hill Briefing]

"America's High-Stakes Response to the WTO Internet Gambling Dispute," July 25, 2007 [Policy Forum]

"U.S.-China Trade, Exchange Rates, and the U.S. Economy," July 19, 2006 [Policy Forum]

"The Cuban Economic Embargo: Time for a New Approach?," February 15, 2000 [Policy Forum]

Speeches and Congressional Testimony

"America's Win-Win-Win Trade Relations With China," Daniel Griswold, Congressional Testimony, October 31, 2003.




Multimedia

Daily Podcast "How Best to Get the Lead Out?" featuring Peter Van Doren, February 13, 2009 [Flash Audio, 11:58]

Media Highlight Juan Carlos Hidalgo discusses the relationship between Obama's administration and Latin America on DEXtv December 2, 2008 [Flash Video, 06:44]

Media Highlight Juan Carlos Hidalgo discusses US/Latin American Foreign Policy on Latin Pulse October 21, 2008 [Flash Video, 05:20]

Daily Podcast "The Economics of Exporting Democracy" featuring Christopher J. Coyne, November 27, 2007 [Flash Audio, 09:03]

Daily Podcast "Consumer Protection or Protectionism?" featuring James A. Dorn, September 28, 2007 [Flash Audio, 07:07]

[View more Multimedia]