Saturday, October 9, 2010

Is Free Trade really free?

There has been lots of talk regarding the free trade and a new poll have come out stating the obvious that most of the people in the U.S. have become sour to the word. That is why it has becoming harder for the U.S. government to negotiate free trade agreements with some countries. Why is the mood so sour right now? Don’t you see it is obvious that the economic situation that we are in right now have changed peoples mind about it. It can hurt businesses that have more revenue generating overseas than in here but for most of the people here it just boils down to what is being unfair use of the word free.

Most of the frustration has to do with the fact that while we can claim that we indulge in free trade, other nations necessarily don’t play by that rule with subsidies given to local industries (we do that too) and import tariffs and other barriers that just stifle free trade. It also affects jobs here that are lost due to the outsourcing and other technological factors.Notwithstanding the fact that the cost of doing business in the U.S. is higher than other developing countries that we have concluded free trade agreements and you can see how we can create jobs which pays decent salaries here when you can find easily cheap labor due to the outsourcing and technological advances. But tell that to people who are against the notion of free trade and long for a time where the free trade was about fair trade. If everybody has a decent job than the free trade would be embraced but if every time you conclude a free trade agreement and it results in losses than it really creates a sour taste in your mouth.

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