Tag: unilateral trade liberalization

How To Get Back To Multilateral Trade Liberalization: Cut Agriculture Subsidies!

Recent discussions of trade negotiations have focused on the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), often referred to as “mega-regional” trade talks.  But most economists and other trade experts agree that trade liberalization would be more beneficial if done on a multilateral basis, at the World Trade Organization (WTO).  There are talks going on at the WTO, referred to as the Doha Round, but they started in 2001 and are widely seen as not likely to achieve much.

What would it take to get WTO liberalization going again?  There are lots of theories on this, but my view is that it’s really pretty simple:  The major trading countries need to propose significant liberalization.  That hasn’t happened yet, and that’s why there has been so little progress.

Without Free Trade, U.S. Consumer Interests Best Represented by EU Negotiators in the Transatlantic Trade Talks

Today marks the official commencement of the much anticipated Transatlantic Trade and Investment Partnership negotiations in Washington. An eventual agreement could eliminate tariffs and curb superfluous rules and regulations that impede commerce and raise costs for businesses and consumers in the world’s largest economies. Those prospects make the effort worthy of our attention and, possibly, our support, but one thing should be clear from the outset: the negotiations are less about free trade than they are the latest rejection of its virtue.

Among economists, businesspeople, and policy scholars, there is near unanimity that international trade is a good thing. Many even call themselves “free traders.” But self-identifying as a free trader in Washington usually means that one supports free trade over there (in other countries), and not necessarily over here, in the United States. What passes for free trade advocacy these days is endorsing the USTR’s official negotiating objectives, which condition liberalization at home on the foreign market access gains obtained for U.S exporters. And that ain’t free trade.

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