Anyone familiar with The Economist knows the mantra: Free trade will ameliorate poverty by increasing growth and reducing inequality. This paper suggests that problems underlying measurement of poverty, inequality, and free trade provide reason to worry about this argument. Furthermore, the paper suggests that better evidence is necessary to establish that free trade is causing inequality and poverty to fall. Experimental studies usually provide the best evidence of causation. So, the paper concludes with a (...) call for further research into the prospects for ethically acceptable experimental testing of free trade's impact on poverty and inequality. Although the paper is unabashedly methodological, its conclusions bear on many ethical debates. Ethicists sometimes argue, for instance, that there is reason to encourage free trade because they believe free trade is decreasing poverty and inequality. Clarifying the empirical facts may not settle ethical debates but it may inform them. (shrink)

What should environmentalists say about free trade? Many environmentalists object to free trade by appealing the “Race to the Bottom Argument.” This argument is inconclusive, but there are reasons to worry about unrestricted free trade’s environmental effects nonetheless; the rules of trade embodied in institutions such as the World Trade Organization may be unjustifiable. Programs to compensate for trade-related environmental damage, appropriate trade barriers, and consumer movements may be necessary and (...) desirable. At least environmentalists should consider these alternatives to unrestricted free trade if they do not prevent the achievement of other important moral objectives, can efficiently reduce environmental problems, and institutional safeguards can prevent their abuse. (shrink)

Free Trade Reimagined begins with a sustained criticism of the heart of the emerging world economy, the theory and practice of free trade. Roberto Mangabeira Unger does not, however, defend protectionism against free trade. Instead, he attacks and revises the terms on which the traditional debate between free traders and protectionists has been joined. Unger's intervention in this major contemporary debate serves as a point of departure for a proposal to rethink the basic (...) ideas with which we explain economic activity. He suggests, by example as well as by theory, a way of understanding contemporary economies that is both more realistic and more revealing of hidden possibilities for transformation than are the established forms of economics. One message of the book is that we need not choose between accepting and rejecting globalization; we can have a different globalization. Traditional free trade doctrine rests on shaky empirical and theoretical ground. Unger takes a new approach to show when international trade is likely to be useful or harmful to the socially inclusive economic growth that every nation wants. Another message is that the movement of people and ideas is more important than the movement of things and money, and that freedom to change the institutions defining a market economy is just as important as freedom to exchange goods on the basis of those institutions. Free Trade Reimagined ranges broadly within and outside economics. Presenting technical issues in plain language, it appeals to the general reader. It puts a disciplined imagination in the service of rebellion against the dictatorship of no alternatives that characterizes life and thought today. (shrink)

In his main work, The Science of Legislation , the Neapolitan Gaetano Filangieri proposed a set of extensive political and cultural reforms. These reforms were necessary to free eighteenth-century societies from the remnants of feudal institutions that obstructed international peace and economic growth. Filangieri's ideas were shaped by the international political climate between the seven Years’ War and the eve of the French Revolution. Reinterpreting Montesquieu and Genovesi through the influences of French radical and Enlightenment thought , as well (...) as the economics of Hume, Verri and the Physiocrats, he concluded that European modernity was inherently contradictory.From this perspective Filangieri set out to force a clean break between the technical horizons of mercantilism and enlightened absolutism and a society based on civil rights, a fair distribution of wealth and resources, and free trade. Proper ‘scientific’ knowledge of the rules and principles of legislation would allow governments to balance out the natural and cultural factors that characterise individual states, and to identify the appropriate model for social and economic development. If all states acted on their proper interest, international free trade and peaceful competition between states would emerge and the potential for general economic growth be materialised. Thus, the natural equilibrium and ‘universal consensus’ among nations could be restored. (shrink)

The debate over a possible Free Trade Agreement (FTA) with the United States is complicated to the point that the famous Schleswig-Holstein question seems straightforward by comparison. As a result, the debate has been fragmented into a series of arguments on separate issues, more or less ensuring that it will not reach any satisfactory conclusion.

In this paper, I argue that there is no essential inconsistency between a well-constructed free trade policy and environmental sound development. From an examination of the concept of “free trade,” I argue that “free trade” must mean “environmentally sustainable trade.” The argument is conceptual in nature. I argue that free trade must mean trade free of subsidies in which the price of a good fairly reflects the costs of its (...) production. I then argue that environmentally unsustainable commodity trade is in fact “subsidized.” Therefore, the international regulation of this trade would be consistent with the goal of free trade. Moreover, such regulation could promote both environmental conservation and the long-run interest of developing countries. However, ethical and practical considerations demand that these regulations must be structured so that they do not have a negative short-term economic impact on developing countries. A mechanism to implement this policy is suggested. (shrink)

In this article, I offer a methodological analysis of the empirical research on the causal effects of trade liberalisation, and assess whether such studies can be of any use for guiding policy prescriptions in real-world economies. The analysis focuses on the mainstream economic research that has been used to support arguments in favour of trade liberalisation during the last decades. Even though there are empirical results that could be taken as valid evidence for a causal connection between (...) class='Hi'>free trade and economic gains, none of the existing evidence licences trustworthy inferences about the policy effectiveness of trade liberalisation reforms in real-world cases. There are three aspects of the empirical literature that make it highly problematic for making reliable policy inferences: (a) the criteria used to define the notion of ‘free trade’, (b) the background assumptions embedded in the econometric techniques used for estimating causal effects, and (c) the widespread desire among academic economists to attain scientific results in terms of universally valid generalisations. The analysis exposes a worrisome mismatch between, on the one hand, the research aims and outcomes of scientific economics and, on the other, the kind of evidence that would be useful for guiding actual policy deliberations. (shrink)

Growing international trade has helped lift living standards around the world, and yet free trade is always under attack. Critics complain that trade forces painful economic adjustments, such as plant closings and layoffs of workers, and charge that the World Trade Organization serves the interests of corporations, undercuts domestic environmental regulations, and erodes America's sovereignty. Why has global trade become so controversial? Does free trade deserve its bad reputation? In Free (...) class='Hi'>Trade under Fire, Douglas Irwin sweeps aside the misconceptions that litter the debate over trade and gives the reader a clear understanding of the issues involved. This third edition has been thoroughly updated to include the latest developments in world trade--including the practice of off-shoring services, the impact of trade on wages, and the implications of trade with China-based on the latest research. (shrink)

Free trade denotes a state of international commercial relations premised on governments’ restraint from using policy instruments meant to favor indigenous industries against foreign competitors. According to the conventional trade theory advocated by classical and neo-classical thinkers, free trade makes little economic sense failing nations’ tendency to specialize based on comparative advantage, a concept with high persuasive influence despite the elapsing of time. Even though the comparative advantage rule has seldom been questioned per se, the (...) free trade concept has been fiercely disputed and not infrequently, bashed. Nations’ involvement in international trade often follows patterns that do not fit theoretical models but attempt to respond to circumstantial interests, most often the need to protect poorly competitive industries. In common parlance, free trade has had both proponents and enemies. (shrink)

Research Articles Fernando R. Tesón, Social Philosophy and Policy, FirstView Article.

The paper examines the ways trust can be re-build for the future of free trade.

The purpose of the paper is to examine free trade in Islamic law.

“States have no morality, they have interests,” remarked an overzealous diplomat. And in this same manner we sometimes see that reasons of state take priority over moral rules. A sweet young thing testifying before a committee of the United State Congress said “sometimes you have to put yourself above the law,” no doubt repeating something that had been said to her. At a time when unrestrained application of the reasons of state can only lead to violence that can no longer (...) be sustained, we can judge to what extent such remarks are without foundation. (shrink)

Adam Smith was quickly gaining fame in northern Europe in the late eighteenth century. His most famous work, An Inquiry into the Nature and Causes of the Wealth of Nations (1776), was translated in...

“States have no morality, they have interests,” remarked an overzealous diplomat. And in this same manner we sometimes see that reasons of state take priority over moral rules. A sweet young thing testifying before a committee of the United State Congress said “sometimes you have to put yourself above the law,” no doubt repeating something that had been said to her. At a time when unrestrained application of the reasons of state can only lead to violence that can no longer (...) be sustained, we can judge to what extent such remarks are without foundation. (shrink)

ABSTRACTThis paper examines the diversity of uses of Adam Smith’s ideas in nineteenth-century American debates about the tariff. Legislative debates about American trade policy ran almost uninterrupted from the 1820s to the end of the century; as a result, they provide an abundance of examples of the ways in which legislators marshaled economic ideas to shape political discourse and influence policy. Smith’s causal ideas about free trade and its effects were referenced in policymaking, and Smith’s intellectual authority (...) was often invoked as a legitimating device for partisan ideology. These uses, I argue, contributed to the sloganizing of Smith as the ‘apostle of free trade’ and his enduring popularity as a political icon in American politics. (shrink)

This paper argues that, in light of the apparent settled nature of economists’ judgement on the issue of trade liberalization, the profession has stopped thinking critically about the question and, as a consequence, makes poor-quality arguments justifying their consensus. To develop support for this claim, the paper first recounts what economic analysis can say about trade liberalization. Then it analyses the quality of the arguments that economists make in support of free trade. The paper argues that (...) the standard argument made by economists in favour of free trade is either incoherent or implicitly imposes philosophical value judgements about what is good for a nation or society, or it makes leaps of empirical faith about how the world works. The paper concludes with suggestions for better arguments. View HTML Send article to KindleTo send this article to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle. Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply. Find out more about the Kindle Personal Document Service.DECONSTRUCTING THE ARGUMENT FOR FREE TRADE: A CASE STUDY OF THE ROLE OF ECONOMISTS IN POLICY DEBATESVolume 28, Issue 1Robert Driskill DOI: https://doi.org/10.1017/S0266267112000090Your Kindle email address Please provide your Kindle email.@free[email protected] Available formats PDF Please select a format to send. By using this service, you agree that you will only keep articles for personal use, and will not openly distribute them via Dropbox, Google Drive or other file sharing services. Please confirm that you accept the terms of use. Cancel Send ×Send article to Dropbox To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about sending content to Dropbox. DECONSTRUCTING THE ARGUMENT FOR FREE TRADE: A CASE STUDY OF THE ROLE OF ECONOMISTS IN POLICY DEBATESVolume 28, Issue 1Robert Driskill DOI: https://doi.org/10.1017/S0266267112000090Available formats PDF Please select a format to send. By using this service, you agree that you will only keep articles for personal use, and will not openly distribute them via Dropbox, Google Drive or other file sharing services. Please confirm that you accept the terms of use. Cancel Send ×Send article to Google Drive To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about sending content to Google Drive. DECONSTRUCTING THE ARGUMENT FOR FREE TRADE: A CASE STUDY OF THE ROLE OF ECONOMISTS IN POLICY DEBATESVolume 28, Issue 1Robert Driskill DOI: https://doi.org/10.1017/S0266267112000090Available formats PDF Please select a format to send. By using this service, you agree that you will only keep articles for personal use, and will not openly distribute them via Dropbox, Google Drive or other file sharing services. Please confirm that you accept the terms of use. Cancel Send ×Export citation Request permission. (shrink)

My inquiry will assess why, many decades after first attempts of economic integration, Arab countries have not been more successful in emulating the success of the European Union, a paradigm of successful economic integration. Specifically, I will explore obstacles to Arab economic integration and address the political and economic factors that play a role to achieve this goal. The central hypothesis of this paper is that there must be fundamental structural changes in Arab economic integration agreements.

This paper presents a new perspective on British free traders’ economic thought in the first half of the twentieth century. Former studies have exclusively focused on the aspect of consumerism and idealistic internationalism as the characteristics of British free trade ideology. In so doing, they have overlooked another important aspect of British free traders’ thought. That is, especially within the tradition of left-leaning liberals or New Liberals, the discourse of producerism and a kind of economic nationalism (...) emphasising the home market rather than the external market paradoxically coexisted with fervent support for free trade. This paper elucidates that overlooked tradition of producerism and economic nationalism within liberal economic thought, mainly based on the analysis of the works of J. A. Hobson and J. M. Keynes. Both Hobson and Keynes are known to have frequently changed their opinions on external economic policy, and there has been controversy over how their changing economic thought should be interpreted. This article also suggests an original coherent interpretation regarding this matter by observing the contradictory coexistence of economic nationalism and free trade ideology within the liberal tradition and sheds new light on both Hobson’s and Keynes’s economic thought. (shrink)

The United States' pursuit of increasingly TRIPS-Plus levels of intellectual property protection for medicines in bilateral and regional trade agreements is well recognized. Less so, however, are U.S. efforts through these agreements to influence and constrain the pharmaceutical coverage programs of its trading partners. Although arguably unsuccessful in the Australia- U.S. Free Trade Agreement (AUSFTA), the U.S. nevertheless succeeded in its bilateral FTA with South Korea (KORUS) in establishing prescriptive provisions pertaining to the operation of coverage and (...) reimbursement programs for medicines and medical devices, which have the potential to adversely impact future access in that country. More recently, draft texts leaked from the current Trans Pacific Partnership Agreement (TPPA) negotiations show that U.S. objectives include not only AUSFTA-Plus and KORUS-Plus IP provisions but also ambitious inroads into the domestic health programs of its TPPA partners. This highlights the apparent conflict between trade goals — pursued through multilateral legal instruments to promote economic “health”— and public health objectives, such as the development of treatments for neglected diseases, the pursuit of efficiency and equity in priority setting, and the procurement of medicines at prices that reflect their therapeutic value and facilitate affordable access. (shrink)

The United States’ pursuit of increasingly TRIPS-Plus levels of intellectual property protection for medicines in bilateral and regional trade agreements is well recognized. Less so, however, are U.S. efforts through these agreements, to directly influence and constrain the pharmaceutical coverage programs of its trading partners. The pursuit of increasing levels of intellectual property protection in successive bilateral and regional trade agreements has been driven, at least in part, by a U.S. desire to achieve standards of protection it anticipated (...) from the TRIPS Agreement, but failed to secure. Despite the conclusion of a global agreement on IP standards that would establish significant protections in countries that had hitherto declined them, the U.S. pharmaceutical industry viewed TRIPS as falling well short of its objectives — particularly in light of the delayed introduction of patent protection in countries that are key suppliers of generic medicines, such as India. (shrink)

The objective of this article is to examine the implications of the intellectual property provisions in the US–Jordan Free Trade Agreement (US–JO FTA) and whether they serve as a template for other Arab countries who will be concluding free trade agreements with the USA. My claim in this article is that the intellectual property part of the US–JO FTA goes beyond the World Trade Organization Agreement and cannot form the right template for the proposed US–Middle (...) East FTA of 2013. The first section provides a brief introduction to the US–JO FTA. The second section provides a critical analysis of the FTA’s protection of trademarks, copyright and patents. The third and fourth sections discuss enforcement and implementation of the intellectual property provisions of the FTA. The final section provides a conclusion regarding the intellectual property provisions of the US–JO FTA and highlights an alternative template for the proposed US–Middle East FTA. (shrink)

In 1538–39 Francisco de Vitoria delivered two relections:De IndisandDe iure belli.This article distills from these writings the topic of free trade as a “human right” in accordance withius gentiumor the “law of peoples.” The right to free trade is rooted in a more fundamental right to communication and association. The rights to travel, to dwell, and to migrate precede the right to trade, which is also closely connected to the rights to preach, to protect converts, (...) and to constitute Christian princes. This has significant repercussions on the field of business ethics: the right to free trade is ultimately founded directly on natural law and indirectly on divine law; trade is not independent of ethics; and trade is presented as an opportunity to develop the virtues of justice and friendship, among other repercussions. Vitoria is portrayed as a defender of private initiative and free markets. (shrink)

It is strange, indeed, to have devoted one's life to an obscure topic and to sense it suddenly as a focus of political passion. It is also a unique opportunity: when a country like France, so long a victim of protectionism, makes ready to give it a new impetus, when another, the United States, hopefully cured, envisages it as the stock issue of an electoral campaign, it is fitting to search for motivations which preserve world-wide restrictive practices no longer defensible (...) in theory. Thus, a comportment is discovered first found in international trade then invading the most variegated fields and explaining in large measure the rise of the day's great problems: unemployment, the financial crisis and the armament race. (shrink)

Free trade agreements are about reducing tariffs, market access in services, protection of intellectual property rights, streamlining customs procedures, trade remedy measures, and dispute settlement mechanism. Equally important if not even more important than these provisions is the designation of rules of origin. Many benefits can be lost if restrictive rules of origin are incorporated. Rules of origin are supposed to be straightforward and easy-to-follow methods used to determine origin of imported goods. The policy question that arises (...) is how to improve trade integration among Arab countries through more effective rules of origin. (shrink)