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Comparative Advantage and the High Costs of “Free” Trade

“NAFTA brought [none of] the huge gains its proponents promised. Still, NAFTA contributed significantly to one market in particular: the illicit drug trade.”
Comparative Advantage and the High Costs of “Free” Trade
President Donald Trump walks off Marine One at the White House after spending the weekend at the G20 Summit and meeting Kim Jong Un, in the DMZ in Washington on June 30, 2019. Tasos Katopodis/Getty Images
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President Trump has been criticized as being anti-free trade for backing out of multi-lateral free trade agreements such as the Trans-Pacific Partnership and renegotiated the North American Free Trade Agreement (NAFTA), between the United States, Canada and Mexico. The critics are right.

But being anti-free trade is not necessarily a bad thing, or even un-American. One of the first acts of the new American Congress in 1789 was to use tariffs to protect American companies from British Mercantilism. Tariff’s aren’t always good, but then again, nor is free trade.

James Gorrie
James Gorrie
Author
James R. Gorrie is the author of “The China Crisis” (Wiley, 2013) and writes on his blog, TheBananaRepublican.com. He is based in Southern California.
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