The case for free trade is much broader than the one that trumpets only export potential. And it is more elegant. The most principled case for free trade is a moral one: voluntary economic exchange is inherently fair, benefits both parties, and allocates scarce resources more efficiently than a system under which government dictates or limits choices. After four years of stasis on the trade front, the new environment is a welcome change. Removing barriers to trade in both directions is essential to sustained economic recovery and long-term growth, say Daniel Ikenson, associate director of the Center for Trade Policy Studies at the Cato Institute, and Scott Lincicome, an international trade attorney.
Free trade creates prosperity and supports rising living standards. It is also essential to America’s continued prosperity. As the world’s leading producer of goods and services, the United States needs to ensure that production and supply chains remain open in both directions.
Source: Daniel J. Ikenson and Scott Lincicome, Beyond Exports: A Better Case for Free Trade, Cato Institute, January 31, 2011.
For text: http://www.cato.org/pub_display.php?pub_id=12741
For more on Trade Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=42
First published by the National Center for Policy Analysis, United States
FMF Policy Bulletin/ 08 February 2011
