I received this email from the Economist Intelligence Unit. I disagree with the expert. I believe that free trade is harmful and the consequences are more serious than most people think. I shall be writing more on this point later.
Here is the email from EIU.
After half a century of falling import tariffs, a profound shift is under way. Recent tit-for-tat hikes by the US, China and others mean that a return to the destructive broad-based tariff increases of the 1930s is a genuine possibility.
Critics of free trade are right to assert that trade liberalisation has had some negative consequences. But tariffs will not address these issues. Rather they will have diverse negative effects that will swamp any limited positive impact.
Commissioned by the International Chamber of Commerce (ICC), as part of the ICC World Trade Agenda, an initiative in partnership with Qatar Chamber of Commerce and Industry, ‘ Aftershock: The pervasive effects of tariff hikes’ is a new report that examines ten areas where negative effects may be felt – from the environment to productivity to rent-seeking. You can view the report here.
I am a supporter of Free Trade and although there are ill effects but it is not as bad as Tariffs as a form of control. There are many ways to tweak Demand and Supply to increase or decrease the costs of a goods and service and increasing Tariffs is one of the worst ways to do it.
Contributed by Oogle.