The Truth on Free Trade |
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Nipawin - February 26, 2001 - by: Mario deSantis | |
natural |
Nobody can argue against international trade, since trade is as natural as our behaviour to |
relate to each other. Today, the problem is not trade per se, the problem is the sanction of | |
international contracts which have materialized for example with the World Trade Organization | |
(WTO) and the North American Free Trade Agreement (NAFTA)(1). These international | |
contracts are known as Free Trade, but we have to distinguish "Free Trade" from free trade | |
as our natural propensity to trade within and out of our own geographical confines. | |
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alienated |
Free Trade, as the present international contractual framework to do business between |
countries, is alienated from the interest of common people, while at the same time there | |
is evidence that our own governments are alienated from the interest of common people | |
as well. Therefore, Free Trade is an artificial agreement which is the result of the corporate | |
agenda of the multinational conglomerates. | |
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Mike |
Mike Moore, Director-General of WTO, wants more international agreement on services |
and responding to WTO's critics supporting more national autonomy he has stated that | |
these critics have always taken liberties with the truth(2). It appears that only the proponents | |
of Free Trade can speak the ultimate truth and the search for this exclusive truth was explicitly | |
synthesized by Labourist Tony Blair's recent statement that WTO's critics cannot be allowed | |
to stand in the way of rational argument. I don't agree that the search for the truth is the | |
monopoly of our rational elitist Free Traders and as a consequence I certainly don't take | |
literally their preaching. However, we have the interest to become a bit more intelligent in | |
understanding the social issues affecting Free Trade and as a consequence I would like you, | |
readers, to ponder on the intelligence of the language used by our elitist Free Traders as | |
opposed to the language used by some social economists. | |
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Dan |
In reviewing the study "Trade, Income Disparity and Poverty(3)", by Dan Ben-David of |
Tel Aviv University and L. Alan Winters of Sussex University, WTO's Director-General | |
Mike Moore has stated: | |
Korea |
This report confirms that although trade alone may not be enough |
to eradicate poverty, it is essential if poor people are to have any |
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hope of a brighter future. For example, 30 years ago, South Korea |
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was as poor as Ghana. Today, thanks to trade led growth, it is as |
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rich as Portugal. |
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Sharing |
In their paper "Sharing the Wealth from Growth: Comparing the Canadian and U.S. |
Experiences(4)" by Jack Mintz and Shay Aba, the authors write: | |
inequality |
With falling barriers to trade, businesses can more easily shift |
low-cost production to low-wage economies. The forces of |
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globalization result in greater economic inequality in industrialized |
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economies as the demand for low-skilled workers declines relative |
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to that for skilled labour, whose wages then adjust upward. |
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intrinsic |
There is certainly no absolute truth, but we have at least the intelligence to understand which |
language of the above two is more tuned to our intrinsic values; and at least we, as individuals, | |
can make our choice. | |
------------References/endnotes: | |
List of relevant political and economics articles http://ensign.ftlcomm.com | |
The problem with Free Trade: the structure of WTO and NAFTA, by Mario deSantis and James deSantis, February 23, 2001 | |
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Liberate trade, not paranoia, by MIKE MOORE, February 21, 2001, The Globe and Mail | |
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Trade, Income Disparity and Poverty, by Dan Ben-David of Tel Aviv University and L. Alan Winters of Sussex University http://www.wto.org/wto/english/news_e/pres00_e/pr181_e.htm | |
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Sharing the Wealth from Growth: Comparing the Canadian and U.S. Experiences, by Jack Mintz (C.D. Howe Institute and University of Toronto) and Shay Aba (C.D. Howe Institute) http://www.csls.ca/jan01/aba.pdf |