Economic Equity should be valued over Free Trade

This section I will also focus on rebuttals of the original argument and rebuttals of the rebuttals. "WTO" being undemocratic: Countries are not required to join the WTO, they do so as they see the long term benefits of trade between different nations. This is especially the case for small countries that have only a limited market available in their own country. Due to their climate, technical or scientific know how they may have a comparative advantage that is not able to be taken advantage of fully if their market is limited to domestic output. As can be seen from China, trade has had a massive impact in its rapid economic rise. They have stopped decades of being insular and have begun importing raw materials and producing goods enriching both those within China, those they buy the raw materials from and the consumers they sell finished products to. Often it is not the people"s choice for trade restrictions to be placed " it is coming from the loudest and most vocal industry groups " who do not have a vote. Most people do not want their tax dollars going to industries " and sometimes large multinationals to prop them up. "Jamaica" As the above demonstrates Free Trade is key to the increase in wealth of a nation. The IMF knows this also, so if it is to provide relief to a country that has large debt burdens it will want to ensure that they follow policies that are going to get them out of their economic stagnation long term. Jamaica"s largest export crop is Sugar. (1) The USA, who is a nearby country whose market is huge has a heavily subsidised sugar industry, where for much of the last twenty to thirty years farmers were paid twice that of the going global sugar price for their products (2). As a result farmers that would have otherwise gone out of business, or moved to different crops continue to produce sugar that depresses the world price of sugar due to increased supply and hugely negatively effects the export earnings of Jamaica as this is its largest export. "Bias in Free Trade" I will agree that there is bias in Free Trade " in that case it is not truly "free". If barriers are brought down, they should be done so across the spectrum from agricultural produce to manufactured goods. Developed nations should stop pandering to special interest groups and lower all of their tariffs and subsidies so that their own citizens can benefit, as well as the citizens of their trading partners. Temporary Nature of Subsidises and trade barriers. The CAP of the EU was implemented in 1962, and still continues today " that is fifty years " two generations. This is not temporary and as a result of these practices has done untold damage to the ability of developing countries to find a market for their produce. It is counterproductive for developed nations to provide aid to developing nations whilst simultaneously spending more money on inefficient industries that has the opposite effect. The Australia Government has poured hundreds of millions of dollars into the local car manufacturing industry for years. When this was removed recently the large car makers such as Ford, GM and Toyota have announced an intention of stopping local manufacture. Years of propping up the industry and the local population paying more for sub-standard cars has resulted in the inevitable. This government support was going not to local companies but large multinationals. (3) People should be treated with equity, businesses not so much as it only rewards their bad behaviour and results in a drag to the overall economy. Trade wars By resorting to trade restrictions to protect perceived interests, the favour is simply reciprocated by other countries and it becomes a race to the bottom via a trade war. If everyone has the same tariffs and subsidies it becomes an even playing field again, but at a huge and inefficient cost. It is better to reduce the red tape involved in trade and bring in imports at lower prices so that exports can be produced at lower prices. Implementing policies that seek to gain equity among nations is a flawed one. The best way to improve a nation"s comparative standing is to embrace free trade. As such Free Trade should be more valued that economic equity. (1)http://www.infoplease.com... (2)http://sugarcane.org... (3) http://www.theaustralian.com.au...