Thursday, May 19, 2005

Free Trade?

The Chinese join the WTO and the fair trade regime and what do the US and Europe do? Slap quotas on textiles when their industries start to dry up as a result of competition.

The US has used the tariff since the Washington administration. It protected the domestic market and created the most powerful industrial economy in the world. At this point, near the turn of the 20th century, the US said the entire world needs to embrace free trade and banish the dreaded tariff or else. Free trade is great when you don't have anyone to compete with. You think Nicaragua will be selling any airplanes soon?

The recent "free trade" regime that is sweeping the globe is hardly free. NAFTA, CAFTA, GATT, the EU agreements, etc... All are extremely complex negotiated agreements on what can come in and out of nations with certain nations and industries doing better than others.

"Protectionism" is a nationalist game that favors one nation over another and fans national chauvinism. However, without corporatism where would Sweden, Finland or Norway be today? The national wage can certainly be raised through such organization of labor, business and the state. Should they have joined the Soviet Union under Stalin? No.

The ideal solution is a truly international labor movement. But what do we do in the meantime?

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