Free Trade Is No Utopia
Removal of barriers would strain international relations as the economically strong get stronger and the weak get weaker.
Free trade doesn’t come without costs.
Photographer: Mark Wilson/Getty Images North AmericaPresident Donald Trump recently suggested the removal of all tariffs and non-tariff barriers to global trade. Sounds intriguing, but free trade is rare and it's certainly no utopia.
Historically, it’s been largely confined to periods when a major global power promoted the free exchange of products in its own enlightened self-interest. That was true of Great Britain in the 19th century after it spearheaded the Industrial Revolution and wanted to insure the easy flow of raw materials for its factories from abroad and foreign markets for their output. After World War II, Americans used trade to rebuild Western Europe and Japan to counter the Soviets, and accepted the lack of reciprocity by some of those lands, notably Japan. This was cheaper and more acceptable in the Cold War era than garrisoning more American troops around the world and risking more military confrontations.