1. Global strategies
  2. Combatting unfair trade

Combatting unfair trade

Context

There have been increasing demands in industrial countries for "fair trade" rather than free trade. Normally, unfair trade practices mean such things as non-tariff barriers, covert means to restrict imports, government subsidies (direct or indirect) to exports, and dumping (selling to export markets below the price in domestic markets).

Counter-claim

Demands that trade should take place on "a level playing field" sometimes go beyond the question of unfair practices and attack the very basis of trade - differences in comparative advantage. For example, in pleading for stiffer protection of the garment industry, a labour union representative in the USA put forward a common view: "Apparel produced in countries with abysmally low living standards and virtually no workers' rights threatens living standards in this country and destroys badly needed employment opportunities for our low-skilled workers". But protecting USA garment protection would, at best, only preserve jobs for garment workers at the cost of jobs and income elsewhere in the economy and would make it more difficult for workers in developing countries to raise their "abysmally low" living standards.

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Unfairness
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Metadata

Database
Global strategies
Type
(D) Detailed strategies
Subject
  • Commerce » Trade
  • Content quality
    Yet to rate
     Yet to rate
    Language
    English
    1A4N
    J4112
    DOCID
    12041120
    D7NID
    220502
    Last update
    Dec 3, 2024