The False freedom of free trade…

Free trade is a lie, or at least an illusion. The premise of free trade is that all countries/regions competing for markets with not constraints...or at least artificial constraint. The degree of free trade is usually measured in thing like tariffs, subsidies, ownership restrictions, monopoly laws, etc... But this is only the artificial constraint. For there to be true free trade we would also nee to remove the natural constraints, and that is impossible. Canada may wish to compete with Brazil in the production of Bananas, but there in no way we will ever have, could ever have, the same production of Bananas as Brazil. As is often mentioned with regards to artificial constraints, if the playing field is not flat, if all players are not equal, then free trade will not work, or at least it will work for those who benefit from the constraints while hurting the others. How could natural constraints have any other effect but the same!

It is this inability to achieve equality, substantial equality, which prevents Free Trade from being enacted or effective. It has become a growing movement in economics, spear headed by the progressive moments, to abandon the idea of free trade in favour of fair trade. Fair trade, is trade that acknowledged we are not equal, that in areas of your strength, you need to be willing to give ground, and in areas of your weakness, others will give you ground.

In a discussion with a friend of mine, I made an interesting observation regarding freedom. We all believe, at least in Canada we are free, that we have free trade, thanks to FTA and later NAFTA and maybe soon the FTAA, but if this true? Are you free to go south and get a job? Could you move to Mexico and make a living? Could they come here? No. But could you send you money there and could it work? Yes, and this means that you’re are not free but your money is, you are the slave, it is not. When we speak of free trade, we mean, in reality, free flow of capital.