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ARTICLE · 25 JANUARY 2017

Free Trade Trumps Protectionism

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This past year has seen a growing sentiment against free trade initiatives around the world. The British Brexit vote to leave the EU was one such initiative.

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This past year has seen a growing sentiment against free trade initiatives around the world.  The British Brexit vote to leave the EU was one such initiative. The Comprehensive Economic Trade Agreement (“CETA”) between Canada and the EU was almost derailed by last minute opposition in Europe. President Trump has indicated his willingness to terminate (or renegotiate) the North American Free Trade Agreement (“NAFTA”), and to end the recently-concluded Trans-Pacific Partnership (“TPP”) free trade agreement between twelve Pacific-rim nations. Even The Democratic presidential nominee Hillary Clinton showed luke-warm support, at best, for the TPP.

Economic theory is unequivocal in expressing the fact that removing tariff and non-tariff barriers to trade confers net economic benefits on every economy that embraces free trade.  While there may inevitably be winners and losers as production is rationalized between free trade partners, economies as a whole, and consumers in

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